The European Council has approved the EU end-of-life vehicle regulation, following a European Parliament vote earlier in June, meaning the legislation is now set to become law after publication in the Official Journal of the EU. The regulation introduces mandatory recycled plastic content targets for new vehicles and creates new rules for vehicle design, treatment of end-of-life vehicles, recycled material sourcing, exports and extended producer responsibility. The rules are expected to affect automotive manufacturers, recyclers, plastics suppliers and circular material producers, while also shaping future demand for recycled polymers and potentially influencing the role of tire-derived elastomers, pyrolysis oil and other recovered materials in the automotive value chain.

Recycled plastic targets introduced for vehicles

The regulation requires new vehicles to contain at least 15% recycled plastic six years after the rules enter into force. The target will increase to at least 25% recycled plastic 10 years after entry into force. The regulation will take effect 20 days after publication in the Official Journal of the EU.

At least 20% of the recycled plastic used to meet these targets must come from end-of-life vehicles. This means that 3% of the recycled content in new vehicles must be sourced from end-of-life vehicles after six years, rising to 5% after 10 years.

Post-consumer material required for recycled content

Only post-consumer-derived material will be allowed to count toward the recycled content targets. Under the regulation, post-consumer waste refers to waste generated from products that have been placed on the market or supplied for distribution, consumption or use in a third country as part of a commercial activity, whether paid or free of charge.

The mandates will apply to passenger cars, light commercial vans, regular heavy-duty vehicles, motorcycles and special purpose vehicles. Small-volume manufacturers of heavy-duty special purpose vehicles will be exempted.

Recycled polyolefin demand expected to increase

ICIS plastic recycling analyst Mia McLachlan said the regulation could require 0.5 million to 0.6 million tonnes of recycled polyolefins by 2040 to meet the targets.

According to ICIS, polyolefins are expected to account for around 75% of total recyclate demand because of the greater availability of suitable feedstocks. Recycled polypropylene is likely to represent the largest share, given its use in automotive components.

Chemical recycling allowed under mass balance

Chemical recycling will be allowed to count toward the recycled content targets using a mass-balance accounting approach. The European Commission must adopt an implementing act establishing verification methods for the recycled content targets, including mass balance, within 24 months of the regulation entering into force.

While used car parts will be allowed to contribute to recycled content targets, elastomers from tires will not initially be allowed to count. This may concentrate additional chemical recycling demand in Europe on plastic-derived pyrolysis oil rather than tire-derived feedstocks.

Tire elastomers and bio-based plastics to be reviewed

Within 72 months of the regulation entering into force, the European Commission must publish a review of the technological development and environmental performance of bio-based plastics and elastomers from tires.

Where appropriate, the Commission may present legislative proposals for sustainability requirements and targets, including the possibility that tire elastomers could later count toward recycled content targets. This review may be relevant for tire recycling, rubber recycling and producers of materials recovered from end-of-life tires.

Commission may adjust targets under certain conditions

The regulation gives the European Commission the power to delay or temporarily reduce recycled plastic content targets where a lack of availability or excessive prices of specific recycled plastics make compliance excessively difficult.

The regulation does not provide detailed criteria for interpreting when compliance would be considered excessively difficult.

Restrictions apply to imported recycled material

Recycled material from third countries will not be allowed to count toward the minimum recycled content targets for 48 months after the regulation enters into force.

After that period, imported recycled material may count only if it meets strict requirements. These include sourcing from an EU member state or from a country with environmental protection and worker safety standards equivalent to EU standards, as well as compliance with reuse, recovery and extended producer responsibility requirements for end-of-life vehicles.

Material from third countries will also be subject to mandatory audit requirements, which may limit the amount of imported recycled material that can qualify under the regulation.

Rules also cover design, exports and producer responsibility

Beyond recycled content mandates, the regulation introduces design requirements for new vehicles and criteria for determining when a vehicle is considered an end-of-life vehicle.

The rules will ban the export of end-of-life vehicles and require them to be treated at authorized treatment facilities. They also introduce a transfer-of-ownership framework and a cross-border extended producer responsibility scheme.

The regulation is expected to support the EU’s circular economy objectives by increasing recycled material use in vehicles, improving treatment of end-of-life vehicles and retaining more valuable materials within regulated recycling and recovery systems.

Article source: ICIS.