EU Vehicle Rules Tighten Scrap Exports From Aug. 13

New European Union legislation governing vehicle design, production, and waste management enters into force on August 13, introducing the bloc's first binding recycled plastic quotas for automakers alongside major restrictions on scrap exports.

Regulation 2026/1738, which was published in the Official Journal, replaces existing EU framework directives dating from 2000 and 2005. The single, directly applicable law covers the entire automotive life cycle. While the overarching framework takes effect immediately, most operational obligations begin on Sep. 1, 2028, with the primary compliance deadlines extending into the 2030s.

Under the core mandate, newly type-approved vehicles must incorporate at least 15% recycled plastic by weight starting Sep. 1, 2032. That requirement increases to 25% beginning Sep. 1, 2036. To support the dismantlement sector, the regulation includes a "closed-loop" rule requiring at least 20% of the recycled plastic to originate from scrapped vehicles or parts removed during a vehicle's operational lifecycle.

The regulation also opens the door to mandatory recycling targets for additional structural materials. Within one year of entry into force, the European Commission will complete a feasibility study to decide whether to establish mandatory recycled content quotas for steel, aluminium, magnesium, and critical raw materials, with potential applications projected for 2033.

"The regulation is not just about waste; it is about resilience and Europe's industrial future," said Stéphane Séjourné, Vice-President for Prosperity and Industrial Strategy, European Commission, who framed the law as an industrial policy designed to curb reliance on imported virgin resources and bolster the competitiveness of the European plastics sector.

To facilitate component recovery, manufacturers must provide detailed instructions for removing and replacing parts during maintenance and post-scrap disassembly. Automakers will also be required to issue a "digital circularity vehicle passport" detailing the material composition of each vehicle.

The legal framework expands Extended Producer Responsibility (EPR) to the automotive sector starting in September 2029, requiring carmakers to fund the collection and treatment of write-offs. The broader scope will progressively encompass heavy-duty trucks, buses, and motorcycles.

The regulation also addresses cross-border waste leakage. Beginning in August 2031, only vehicles certified as "roadworthy" through standard European technical inspections may be exported outside the EU. The mechanism establishes stricter traceability metrics to distinguish used cars from waste, targeting the estimated 3.5 million vehicles that disappear from European roads annually through illegal dumping or unmonitored export.

Of the 285.6 million motor vehicles registered across the EU, between 6.5 million and 12 million reach the end of their operational lives annually. Existing recovery processes capture approximately 85% of these materials.

"This goes beyond recycling: it is about guaranteeing access to critical materials and making our automotive sector truly circular," said Jessika Roswall, Commissioner for Environment, Water Resilience, and a Competitive Circular Economy, noting the law ensures "the precious materials inside every vehicle are recovered."

Political negotiators defended the compromise. European People’s Party co-rapporteurs Jens Gieseke and Paulius Saudargas stated that negotiators had "secured realistic targets and ensured less red tape."

However, industry and environmental stakeholders offered contrasting assessments. Spain's recovery and recycling federation, FER, cautioned that expanding mandatory recycled content rules to steel and aluminium would impose "disproportionate technical and economic demands without matching environmental gains." Conversely, the European Environmental Bureau criticized the final text, labeling it "a textbook case of political backsliding under industry pressure."