Mobilians, the main movement of entrepreneurs in the mobility industry, including, vehicle trade, fuel and new energy distribution, repair, recycling and all automotive services, discusses the reason for EPR Systems for ELVs in France, and its challenges with regard to the organisation.
In France, the extended producer responsibility (“EPR”) for end-of-life vehicles has existed since 2006.
A law relating to the circular economy (Law n°2020-105 of February 10, 2020) provides for a further review of the EPR systems in France. A total of 22 EPRs, ranging from plastics, tobacco, furniture, clothing, and many others, of which are subject to the new 2020 law.
The new EPR principle is the same for the 22 sectors: the producers of each sector must set up and finance structures (individual or collective) which are intended to manage the end of life of the products.
The main argument put forward by the legislator concerning this reform for the ELV sector is the fight against the so-called “grey market”. It is now the responsibility of producers to take up the issue, it is no longer up to the administration alone.
In addition, another obligation has been introduced for ELVs (which does not exist in most other sectors): ATFs will have the obligation, from 1 January 2024, to sign with the producer structures to be legally authorized to collect, clean up and process ELVs. Companies that have been free to operate will be subject to producer-owned superstructures.
A legislative development that raises questions, knowing that the ATFs are economically viable (the ATFs bear 88% of the costs), functional and efficient: France reaches or even exceeds the rates imposed by the European Directive:
- 1% reuse and recycling rate (for a target of 85%)
- 95% reuse and recovery rate (for a target of 95%).
Mobilians’ Recyclers are not against these legislative changes but are subject to conditions. In a White Paper published at the start of 2022, Mobilians made eight proposals for an “innovative, sustainable and serene” ELV sector with the aim of defending the interests of the profession. Among these proposals were to:
- make the production of reused parts mandatory for ATFs to strengthen the circular economy of the product;
- maintain direct supplies without the obligation to go through producer structures in order to leave the choice to ATFs;
- maintain the administrative destruction of vehicles within ATFs,
- promote communication campaigns to publicize legal channels.
What are the next steps?
The original schedule is modified. The profession is awaiting the publication of a decree to know the details of the new structure of the sector. By the end of the year, we should know more about the future of ATFs in France.
MOBILIANS is the first movement of business leaders in the automotive trade and repair and mobility services: cars, motorcycles, bicycles, industrial vehicles, scooters, etc. Our professional organization represents nearly 160,000 local businesses and 500,000 non-relocatable jobs throughout France. MOBILIANS defends the individual and collective interests of road mobility professionals and supports them in the development of their professions. It deploys a prospective action for sustainable development and the promotion of individual or shared mobility in conjunction with all stakeholders.
Among these players, ATFs represent an essential link in the chain of sustainable and responsible mobility. In France, nearly 1,700 ATFs process 1.6 million vehicles each year, and produce between 8 and 11 million reused parts which are then reintegrated into the market. They have an essential role to play in the ecological transition of a rapidly changing automotive industry.