Europe’s recycling sector has welcomed the Parliament’s approval of the new ELV Regulation, but says implementation will decide its success. FEAD, FER and Recycling Europe support stronger circularity, recycled-content and traceability measures, while warning that secondary legislation must create demand, protect viable recycling models and reflect operational realities.
Europe’s recycling sector has broadly welcomed the European Parliament’s approval of the new End-of-Life Vehicles Regulation, while warning that the next phase of secondary legislation, market building and implementation will determine whether the rules strengthen circularity or add cost to recycling models that already work.
The European Parliament gave the green light to the Regulation on circular vehicle design and the management of end-of-life vehicles on 18 June 2026, following political agreement between Parliament and Council at the end of 2025.
Responses from FEAD, FER and Recycling Europe show strong support for the Regulation’s direction of travel, particularly on recycled plastic content, producer responsibility, digital circularity tools and tighter export controls. However, they also underline clear concerns around proportionality, demand creation and the technical realities of vehicle recycling.
FEAD: A step forward for European circularity
FEAD, the European Waste Management Association, welcomed the Parliament’s approval, describing the Regulation as a step forward for European circularity and a strengthened framework for the automotive sector.
The association said the final text recognises the essential role of Europe’s recycling industry in delivering high-quality secondary raw materials, while creating a more credible framework to support demand for recycled plastics.
FEAD was particularly encouraged by the limitation of recycled plastic content targets to post-consumer plastic waste, arguing that this is essential if the rules are to support real collection, sorting and recycling activity.
“The clear limitation to post-consumer plastic waste is essential. It ensures that recycled content targets support real collection, sorting and recycling of plastic waste, while giving operators the long-term certainty they need to invest and scale up capacity to integrate recyclates across Europe,” said Paolo Campanella, Secretary General of FEAD.
“With the recycled content target entering into force in six years, the sector has a realistic timeframe to prepare. However, achieving the Regulation’s circularity objectives will require commitment across the entire automotive value chain, from producers to waste management and recycling operators, and we are ready to do our part.”
FEAD also welcomed the inclusion of a mirror clause for plastics, which is designed to ensure equivalent requirements for imported materials through audit and verification mechanisms. The association said this would support fair competition, environmental integrity and confidence in European recycling markets.
ATFs recognised as the backbone of ELV treatment
FEAD also highlighted the Regulation’s reinforced Extended Producer Responsibility framework, including an official observer role for waste management operators on producer responsibility organisation governing bodies.
For the recycling sector, this matters because implementation will require structured dialogue between producers and the operators responsible for collection, treatment and recycling.
The association also welcomed the recognition of Authorised Treatment Facilities as the backbone of the ELV treatment chain. ATFs are responsible for issuing Certificates of Destruction and play a central role in traceability, depollution and environmental compliance.
FEAD said the Parliament’s vote confirms that end-of-life vehicles should be treated not as waste to be discarded, but as a strategic resource stream for Europe’s circular economy.
Recycling Europe: Build the market to deliver the rules
Recycling Europe also welcomed the vote, saying it brings years of negotiation to a close and gives the automotive value chain long-term regulatory certainty.
However, the organisation said the debate must now move from target-setting to delivery. Its central message was that Europe must create the market conditions needed to make the Regulation work.
Julia Ettinger, Secretary-General of Recycling Europe, said: “Today’s vote provides long-term regulatory certainty for the entire automotive value chain. The discussion can now move from negotiating targets to delivering them. What is striking is that, despite a political agreement having already been reached, some voices continue to argue that there will not be enough recycled materials available to meet targets that will only start applying years from now. That is the wrong debate.”
Recycling Europe argued that if the EU wants enough high-quality recycled plastics and metals available by 2032, the answer is not to weaken ambition, but to create demand and investment certainty now.
“Recyclers have been ready to invest in advanced sorting technologies and additional recycling capacity, but these investments require clear market signals,” Ettinger added. “If Europe wants more recycled materials tomorrow, it needs stronger demand for them today.”
For vehicle recyclers, this is one of the central practical issues. Targets alone do not build capacity. Investment depends on predictable demand, functioning markets and long-term commitments from manufacturers to use recycled materials.
FER: Circularity must not undermine a model that works
The Spanish Federation for Recovery and Recycling, FER, also recognised the Regulation as progress towards a more circular automotive sector, but warned that parts of the text could put pressure on an established and efficient recycling model.
FER welcomed several measures, including mandatory recycled plastic content in new vehicles, circularity strategies from manufacturers, declarations of recycled content, digital circularity passports and tighter controls on exports of used vehicles.
However, the federation warned that some technical and economic requirements risk creating costs without equivalent environmental benefits.
“The Regulation is just the trunk of the tree; now it remains to develop all its branches in the form of secondary legislation, which will determine how these measures are actually applied; and that is where it will be essential to listen to the recycling sector to avoid unwanted effects,” said Ion Olaeta, president of FER.
FER’s strongest concern relates to quality requirements for steel and aluminium recovered from ELVs. The federation said reducing certain elements, such as copper in fragmented steel, and progressively separating different grades of aluminium will require significant investment in sorting and separation technology.
According to FER, these costs could increase treatment burdens without clear evidence of proportional environmental benefit.
“The recovery of metals from end-of-life vehicles is today a highly efficient and consolidated activity, so introducing obligations that increase the cost of the process without improving environmental results means putting up obstacles that do not currently exist,” said Olaeta.
Technological neutrality remains a key concern
FER also questioned mandatory pre-dismantling requirements for components such as complete electric motors or rims before vehicle fragmentation.
“Legislation should be technologically neutral and allow each facility to use the most efficient processes,” Olaeta said, adding that the sector has spent more than 20 years simplifying and optimising recycling processes.
For shredders, post-shredder operators and metal recyclers, the concern is that regulation could prescribe process steps rather than outcomes. The practical challenge will be ensuring that future delegated acts recognise different facility types, technologies and proven recovery routes.
Demand for recycled plastic must match recovery obligations
FER also pointed to what it sees as a contradiction in the Regulation. While the rules require increasing recovery of plastics from ELVs, the recycled-content targets in new vehicles remain relatively modest and include possible exceptions in cases of shortage or price increase.
“There is a demand to recycle more plastic, but there is no guarantee that there will be a market to consume it,” said Olaeta. “Without a solid demand for recycled materials it will be very difficult to consolidate the investments necessary to advance in a true circular economy.”
This point aligns with Recycling Europe’s call for stronger market signals. Across the responses, the recycling sector is not simply asking for higher targets. It is calling for rules that create real, bankable demand for recycled materials and support investment in collection, sorting, dismantling and material recovery.
What this means for auto recyclers
For ATFs, dismantlers, shredders and post-shredder operators, the Parliament vote marks an important political milestone, but not the end of the process.
The Regulation confirms the direction of travel: more circular vehicle design, stronger recycled-content requirements, tighter export controls, producer responsibility, improved traceability and greater emphasis on professional treatment infrastructure.
However, the responses from FEAD, FER and Recycling Europe show that implementation will be decisive. Recyclers want the rules to support investment, fair competition, technological neutrality and robust markets for recycled materials.
The message from the sector is clear. Europe has now backed a more circular vehicle system in law. The next challenge is to make it work in practice.
Sources fead.be recyclingeurope.org recuperacion.org
Further Reading on Auto Recycling World
- Council And Parliament Strike Deal On Rules For Vehicle Circularity And Management Of ELVs
- The European Council’s Progress On The ELV Regulation
- Collaboration Takes Centre Stage At IARC 26
- No Successful Circular Economy Without Material Data
