Today, the Commission is proposing measures to enhance the circularity of the automotive sector, covering the design, production and end-of-life treatment of vehicles. This initiative will improve access to resources for the EU’s economy, contribute to the EU’s environmental and climate objectives, while reinforcing the single market and contributing to address the challenges associated with the ongoing transformation of the automotive industry.
The proposed actions are expected to generate €1.8 billion net revenue by 2035, with additional jobs created and enhanced revenue streams for the waste management and recycling industry. Moreover, they will contribute to better road safety in third countries by preventing the export of non-roadworthy vehicles and reducing harmful pollution and health risks in countries importing used vehicles from the EU.
The proposed regulation, replacing the current Directives on end-of-life vehicles and on reusability, recyclability and recoverability, is expected to have substantial environmental benefits, including an annual reduction of 12.3 million tons of CO2 emissions by 2035, better valorisation of 5.4 million tons of materials, and increased recovery of critical raw materials. The implementation of the regulation will lead to long-term energy savings at the manufacturing stage, reduced dependency on imported raw materials, and the promotion of sustainable and circular business models.
Actions for circular transition and more resilience in automotive sector
It is projected that automotive sector will become the largest consumer of critical raw materials used in permanent magnets of e-drive motors in Europe. Enhancing the EU’s resilience against supply chain disruptions and reducing its dependency on critical raw materials imports is key to the transition to zero-emission vehicles. To facilitate the sector’s transition, the Commission has revised the existing legislation and proposes a single regulation that focuses on several key elements to improve quality in design, collection, and recycling, while facilitating reporting obligations:
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