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France – Mobilians calls for urgent consultation with auto recycling stakeholders to preserve the economic balance within the EPR ELV sector

As part of the implementation and structuring of the REP (EPR (extended producer responsibility)) sector on end-of-life vehicles, following the reform carried out by the Law on the Circular Economy of 2020, the Recyclers Branch of MOBILIANS, based in France, took note of the next regulatory framework which will apply to economic stakeholders in the sector, and the content of which is currently open to public consultation until 8 April. MOBILIANS, which was heavily involved in the drafting of the AGEC law in 2020, regrets the lack of prior consultation with the stakeholders of the VHU (ELV) sector and wishes to alert the public authorities to the future organization of the EPR sector relating to ELVs.

 

France - Mobilians calls for urgent consultation with auto recycling stakeholders to preserve the economic balance within the EPR ELV sector p

An old and exemplary EPR ELV sector from an environmental point of view

In place since 2006, the EPR ELV sector is one of the professions in the automotive sector most regulated and controlled by the public authorities, widely recognized for its undeniable efficiency: recycling rates are exceeded (87% recycling and reuse), while the recovery rates have already been achieved (95%).

In order to fight more effectively against illegal ELV treatment channels, the AGEC law of 2020 reinforced the obligations of producers in the management of their product and provides for the establishment of eco-organizations or individual systems responsible for ensuring the management of ELVs (collection and recycling) from 1 January 2022. In addition, each approved ELV center will be required, as of 1 January  2024, to conclude a contract with an eco-organization or an individual system to continue its activity of processing and recycling end-of-life vehicles.

An implementing decree, currently subject to public consultation, must specify the organizational arrangements for this new PWR VHU sector, and in particular the conditions applicable to eco-organizations and individual systems.

The recycling branch of end-of-life vehicles of MOBILIANS, which very actively followed the drafting of the AGEC law in 2020 and its provisions relating to the ELV sector, regrets that this draft decree has been submitted for public consultation without prior consultation of stakeholders in the sector, while it is a structuring regulation for the future of an entire profession.

MOBILIANS (at the time the CNPA) had already alerted at the time of the AGEC law on the impact of this reform of the REP sector on the existing economic balances within the sector.

The risks of the future regulations applicable to EPR ELVs

In substance, the draft decree does not respond, at this stage, to the concerns expressed at the time by the profession and does not provide any guarantee on the structuring of the EPR sector.

  1. A possible arbitrary selection of treatment operators: while ELV centers will be obliged, from 1 January 2024, to sign contracts with eco-organizations and/or individual systems of manufacturers, the call system for The offer will necessarily lead to a selection of stakeholders. Stakeholders not selected by eco-organizations or IS will simply have to cease their activity, file for bankruptcy and lay off thousands of employees.
  2. A risk of imbalance in competition between economic players: the current regulations provide for several provisions to protect the interests of approved ELV centres. Thus, the agreements signed between ELV centers and car manufacturers which require a center to only accept ELVs of certain brands or certain models, are today considered abusive and therefore prohibited by law. However, the current draft regulations provide no guarantee that these protective provisions will be maintained for ELV centres.
  3. The new organization scheme of the EPR ELV sector as envisaged by the draft decree is problematic: it raises fears of a dissociation between the physical destruction of the vehicle and its administrative destruction: today, only approved VHU centers have the possibility of deregistering a vehicle in the SIV and changing the vehicle from product status to waste status. If ELV centers lose this option, several risks may arise, in particular a loss of traceability and identification of the party responsible in the event of an infringement.
  4. The future regulations completely ignore the role of parts from the circular economy (PIEC) produced by ELV centers. However, ELV centres, which produce between 8 and 11 million recycled parts each year, now have a key role in promoting the reuse and reuse of parts in the automotive industry. The recyclers branch of MOBILIANS would like a minimum PIEC production rate to be included in the regulations.

Finally, the future regulatory framework makes no provision for combating illegal channels for the treatment of end-of-life vehicles, whereas this was the number one priority for the public authorities in the context of the reform of the sector. ELV EPR. It is inconsistent to announce such an objective and not mention it in future regulations.

The Recycling Branch of MOBILIANS, which is fully in favor of the spirit of REP, would like to point out that individual systems are not adapted to the current organization of REP VHU:

  • The implementation of SI is technically unfeasible: ELV centers today process all makes and all models of vehicles in a given territory. Setting up a brand-by-brand operation would be absolutely unmanageable for ELV centres.
  • An ecological aberration: assuming ELV centers operate brand by brand, each vehicle will have to be redistributed to the correct centre, which would greatly increase the carbon footprint of vehicle transport.
  • Economically unbalanced: the cost of transporting vehicles to get them to the right ELV center will be added to all the charges weighing on producers to meet their EPR obligations.

The proposals of the MOBILIANS recyclers branch for a serene, efficient and sustainable EPR sector

The Recyclers Branch calls for maintaining optimal operation of the EPR ELV sector and preserving the economic balance in a sector that has proven itself. It is essential that ELV centers can maintain different sources of direct ELV supply, which would allow them to:

  • Guarantee the freedom of the centers and maintain their independence
  • Maintain vehicle traceability and SIV update without loss
  • Retain all economic players in a territory and maintain local and inclusive jobs
  • Maintain the expertise and historical know-how of ELV centers to define whether a vehicle is intended for repair or destruction.

The Branch requested an urgent request from the services of the Ministry of Ecological Transition to discuss the content of future regulations and submit its proposals. A White Paper* has already been sent to the public authorities to this effect. It will now be a question of continuing the consultation with the representatives of the ELV centers and all the stakeholders concerned, on the technical and operational methods of the EPR sector, in a spirit of responsibility and collaboration with the ministry.

*https://www.mobilians.fr/metier/recycleurs/gouvernance/eco-organisation/livre-blanc-vhu-pour-une-filiere-vhu-innovante-perenne-et-sereine/

About Mobilians

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 evolution of their professions. It deploys a prospective action for sustainable development and the promotion of individual or shared mobility in conjunction with all stakeholders.

Source www.mobilians.fr

Note: French to English Translation using Google translate

VHU / véhicules hors d’usage = ELV / End of Life Vehicles

REP / responsabilité élargie du producteur = EPR / extended producer responsibility

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