The European Union proposed a regulation on End-of-Life Vehicles (ELV), outlined in the European Green Deal and Circular Economy Action Plan, which is set to replace two existing directives, 2000/53/EC and 2005/64/EC, related to end-of-life vehicles. According to this proposal, new car plastics must contain 25% recycled plastic, with 25% sourced from scrapped vehicles. Additionally, 30% of plastics from end-of-life vehicles should be recycled. The European Parliament and Council will review this proposal through the ordinary legislative procedure.

This proposal aims to enhance the EU's resource acquisition path, contribute to environmental and climate goals, strengthen the single market, and address ongoing transformation challenges in the automotive industry. By 2035, it is expected to generate a net income of 18 billion euros, create additional job opportunities, and provide better income sources for waste management and recycling industries. Furthermore, by preventing the export of unfit vehicles, it aims to contribute to improved road safety in third-world countries, reduce harmful pollution, and minimize health risks in nations importing second-hand vehicles from the EU.

The proposal is designed to replace current regulations on end-of-life vehicles and their reusability, recyclability, and recoverability. The anticipated implementation of these regulations is expected to yield substantial environmental benefits, including a reduction of 12.3 million tons of CO2 emissions by 2035, more efficient utilization of 5.4 million tons of materials, and increased recovery of critical raw materials. The long-term implementation of these regulations is expected to help conserve energy during the production phase, reduce dependence on imported materials, and promote the development of sustainable and circular business models.