The joint ENVI/IMCO vote on the End-of-Life Vehicles Regulation (ELVR) is a welcome step towards a more circular automotive industry in Europe. However, while progress has been made, EuRIC warns that low targets, loopholes, and legal uncertainties risk holding back the investments and market confidence needed to scale Europe’s circular economy in practice.

Europe’s plastics recycling and post-consumer textile collection, preparing for reuse, and recycling industries are facing a deepening crisis that requires urgent political action.

Circularity is no longer a niche environmental ambition - it is fast becoming a defining pillar of Europe’s industrial strategy. Amid mounting geopolitical pressures, volatile supply chains, and climate emergencies, the ability to retain materials, reduce resource dependence, and lower emissions has moved to the core of EU policymaking. This shift is visible across several flagship initiatives: from the Green Deal to the Clean Industrial Deal and, most recently, the Commission’s Steel and Metals Action Plan.

The European Commission’s Steel and Metals Action Plan is a gamble with Europe’s recycling future, according to the European Recycling Industries’ Confederation (EuRIC). Instead of first securing demand for recycled metals, it prioritises keeping "scrap" in Europe, for Europe, by restricting exports, ignoring the fundamental problem: part of Europe’s recycled metals (“scrap”) is exported because of weak domestic demand and limited processing capacity.

The Commission has fined 15 major car manufacturers and the European Automobiles Manufacturers' Association (ACEA) a total of around €458 million for participating in a long-lasting cartel concerning end-of-life vehicle recycling. Mercedes-Benz was not fined, as it revealed the cartel to the Commission under the leniency programme. All companies admitted their involvement in the cartel and agreed to settle the case.

EuRIC, the voice of Europe’s recyclers welcomes the Commission’s ambition to lay out a plan driving the continent’s energy transition and industry empowerment.

The European Commission has recently published the Competitiveness Compass, its competitiveness strategy for the next 5 years, which proposes several pieces of legislation / action plans related to the circular economy.

The European Commission's proposal for a Regulation on vehicles and end-of-life vehicles (ELVs) presents a crucial opportunity to enhance circularity throughout the vehicle lifecycle and support climate neutrality goals.