EU Drives Auto Sustainability

In a landmark decision on Thursday, the European Parliament approved new regulations aimed at enhancing the sustainability of the automotive sector across the European Union. The new circularity rules, designed to encompass a vehicle’s entire lifecycle from design through to end-of-life treatment, were adopted with a significant majority.

The new legislative framework mandates that all new vehicles be engineered for easier disassembly, enhancing the potential for recycling and recovery. It stipulates binding targets for the inclusion of recycled materials in vehicle production, including a requirement that plastics used must contain at least 15% recycled content within six years, rising to 25% within a decade. A significant portion of this recycled plastic must originate from end-of-life vehicles, promoting a closed-loop recycling process.

Further measures include a prohibition on exporting vehicles deemed non-roadworthy, aiming to curb the illegal treatment and dismantling of used vehicles. Additionally, the regulation introduces extended producer responsibility, requiring manufacturers to bear the cost of collecting and treating vehicles at the end of their useful life.

The agreement, which reflects negotiations between the Parliament and the Council concluded in late 2025, also seeks to streamline processes within the EU’s internal market. Sellers of used vehicles will now need to verify that the cars are not end-of-life vehicles or ensure they possess a valid roadworthiness certificate, easing the regulatory burden on private transactions.

This regulation aligns with the European Green Deal and the circular economy action plan, aiming to reduce waste and promote reuse across the automotive industry. Following this parliamentary approval, the Council’s formal endorsement is pending, after which the regulation will be enforced 24 months later, marking a significant step towards a more sustainable automotive future in Europe.