ELV report challenged by EuRIC and FEAD for ‘mixed signal’ around the automotive industry

Deep concerns have been raised by both EuRIC and FEAD around certain provisions of the draft ELV report, which was recently published by the European Parliament’s rapporteurs. This report appears to be sending mixed signals on automotive circularity.

EuRIC is the European Recycling Industries’ Confederation and this is the umbrella organisation for European recycling industries. This organisation has eighty members across twenty-three companies within Europe and currently it represents over 5,500 large companies, as well as SMEs who are all involved in the recycling and trade of various resource streams. This organisation is incredibly important in today’s society, because transforming waste into resources and focusing on recycling, allows communities to repeatedly reintroduce a range of valuable materials into value chains. Through practising recycling, the organisation and everyone involved with the organisation, helps to bridge circularity as well as climate neutrality, whilst simultaneously leading Europe’s industrial transition and competitiveness.

FEAD is the European Waste Management Association and the organisation represents the private waste and resource industry throughout Europe. It includes twenty national waste management FEAD federations, as well as 3,000 waste management companies.

Further to this, Management European AssociationWastecompanies sustain operations in 60% of municipal waste markets in Europe, as well as in 75% of industrial and commercial waste. The outcome of this is that there are more than 320,000 local jobs collectively fuelling five billion euros of investments into the economy on an annual basis.

This draft report, which was written by MEPs Jens Cieseke (ENVI) and Paulius Saudargas (IMCO), looks at positive steps such as, expecting a 30% recycling obligation, mandating recycled plastic content targets in automotive and finally, introducing a closed-loop target for ELVs. Yet it appears, when this report is compared to the Commission’s proposal, the ambitions have been reduced. This can be seen in statistics, such as the plastic content target being dropped from 25% to 20%, plus the closed-loop target has been reduced from 25% to 15%. There are several other areas which appear concerning in this report, such as the lack of an offer around increasing ELV plastics, an unbalanced focus on chemical recycling and finally not enough attention paid to sidelining mechanical recycling and existing innovations.

Whilst in places the report does talk accurately about certain innovations in plenty of detail, such as urging organisations like Producer Responsibility Organisations (PROs) to ensure that recyclers are involved in their governing bodies. The report also talks about missing vehicles or even making room for flexibility in removal and dismantling obligations. However, it is clear that there is certainly a lack of bold action which is necessary when it comes to pushing and encouraging eco-design, technological innovation and finally real and effective circularity within the automotive industry.

Currently Europe is pushing to be more competitive and to gain regulatory simplification, however it is extremely important that Europe finds the right balance when pushing for this. Creating simpler rules should not lead to weaker circularity, it should not limit innovation or even reduce the ability to recycle materials. If things continue as they are, it is possible that Europe could risk missing the opportunity to be able to recover valuable materials, boost the economy or even support EU waste management and recycling industries. These are incredibly necessary as these all play a large role in reducing the continent’s dependence on imports of raw materials from third countries.