[Regulation]Regulation update: Legislative Status of EU Automotive Circularity and New ELV Regulation (2023/0284)

1 Apr 2026


Greetings from MDSKorea.

In this chemical regulatory update, we would like to share the latest news on the "Legislative Status of the EU Automotive Circularity and New ELV (End-of-Life Vehicles) Regulation."

The EU is currently advancing legislation to replace the existing end-of-life vehicle directives with a single consolidated regulation. This process is now in its final stages, awaiting the European Parliament vote and official adoption by the Council. Below are the detailed key contents and the current legislative status.


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Regulatory Overview

The European Union (EU) is establishing a new regulation (2023/0284 (COD)) that encompasses the entire lifecycle of a vehicle, from the design stage to the treatment of end-of-life vehicles.

This new regulation aims to improve resource efficiency, recyclability, and material transparency throughout all stages of a vehicle's production, use, and disposal. It will also support the achievement of climate neutrality in alignment with the EU's Fit for 55¹⁾ package.

1) Fit for 55: The EU's core climate legislation package aimed at reducing greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels.



Key Contents

1. Circularity Requirements for Automotive Design 

Vehicles sold in the EU in the future must be designed in a more sustainable manner. The key provisions are as follows:

  • Improved Recyclability: Reflected from the design stage to facilitate the easy recovery of parts and materials upon disposal.

  • Expanded Use of Recycled Materials: Increasing the mandatory proportion of recycled materials used in the manufacturing of new vehicles.

  • Enhanced Documentation of Materials and Parts: Imposing strict obligations to meticulously record and manage all substances and components used in a vehicle.

  • Objective: Reducing global carbon emissions generated throughout the entire lifecycle of automotive production, use, and disposal.


2. Strengthened Rules for ELV Management and Distribution 

A harmonized framework will be introduced to secure transparency within the end-of-life vehicle market:

  • Suppression of Illegal Activities and Exports: Blocking illegal trades, such as the export of ELVs disguised as used cars outside the region.

  • Transparent Transfer of Ownership: Strengthening the management of distribution history by tightening regulations on commercial dealers and online platforms.


3. Alignment with Climate Goals 

This regulation complements the EU's greenhouse gas reduction policy, Fit-for-55, and actively supports the achievement of climate neutrality goals.

It focuses not only on expanding zero-emission drivetrains but also on establishing sustainable production and robust resource circulation systems.


4. Modernized Legal Framework 

The core of this legislation is the overhaul of the existing legal framework, reorganizing it into a single integrated regulation:

  • Repeal of Directives: The existing ELV Directive (2000/53/EC) and the Vehicle Recyclability Directive (2005/64/EC) will be replaced by the new regulation.

  • Amendment of Related Regulations: The Vehicle Type-Approval Regulation (EU 2018/858) and Market Surveillance Regulation (EU 2019/1020) will be amended in connection with the new circularity requirements.

  • Exemption Clause: To protect European cultural heritage, "vehicles of historical interest" are exempt from obligations related to export, ownership transfer, and scrapping.


5. Legislative Progress and Future Procedures

Recent Status 

The Committee of the Permanent Representatives of the Governments of the Member States to the European Union (Coreper) has approved the final compromise text. Following this, it was officially forwarded to the chairs of the relevant European Parliament committees (IMCO and ENVI).


Future Procedures

  • European Parliament Review and Vote: A plenary vote will be held following reviews by the Committee on the Internal Market and Consumer Protection (IMCO) and the Committee on the Environment, Public Health and Food Safety (ENVI).

  • Official Adoption by the Council: Since a political agreement has already been reached, a formal approval process is anticipated.

  • Publication and Entry into Force: Upon approval by both institutions, it will be published in the Official Journal of the European Union and will officially enter into force 20 days after publication.

  • Implementation: The rules will not apply immediately upon entry into force; full implementation will begin after a separate transition period specified within the regulation.



Conclusion

Once this regulation officially enters into force, significant transformations are expected across the entire automotive design and end-of-life waste management systems. Therefore, continuous monitoring is required regarding its publication in the Official Journal of the EU and the detailed schedule of the transition period that will apply after its official entry into force.


MDSKorea will always do its utmost to provide valuable and timely information to industry professionals.

Thank you.




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