New EU Regulation on Vehicle Circularity and End‑of‑Life Vehicle Management in Progress

The IMDS

The European Union is developing a new regulation on circularity requirements for vehicle design and the treatment of end‑of‑life vehicles (2023/0284 (COD)). The aim is to improve resource efficiency, recyclability, and transparency throughout the entire life cycle of a vehicle. The regulation is intended to replace existing directives and align them with modern climate and environmental objectives.

Key Elements of the Proposed Regulation

1. Circularity Requirements for Vehicle Design
Vehicles will need to be designed in a significantly more sustainable way in the future. This includes:

  • Higher recyclability
  • Increased use of recycled materials in vehicles
  • Better documentation of materials and components

These measures aim to help reduce global emissions generated during vehicle production, use, and disposal.

2. Stricter Rules for End‑of‑Life Vehicles
The regulation introduces a harmonized framework to:

  • Reduce fraud in the end‑of‑life vehicle market
  • Curb illegal exports
  • Make ownership transfers more transparent

Commercial dealers and online platforms in particular will face stricter obligations.

3. EU Climate Targets as the Guiding Principle
The initiative complements key elements of the Fit‑for‑55 package and is intended to support the EU’s climate‑neutrality objectives. In addition to zero‑emission drivetrains, greater emphasis is being placed on sustainable production.

4. Modernized Legal Framework
The regulation will:

  • Amend Regulation (EU) 2018/858 and 2019/1020
  • Repeal Directives 2000/53/EC and 2005/64/EC

This will create a modern and unified legal framework.

Exemption for Historic Vehicles

Good news for classic‑car enthusiasts:
Vehicles of historical interest remain exempt.
They are not subject to export, ownership transfer, or end‑of‑life obligations—explicitly to protect Europe’s cultural heritage.

What Is the Current Status?

On 25 February 2026, the Committee of Permanent Representatives of the Member States (Coreper) approved the final compromise text—an important milestone on the way to the regulation’s formal adoption.

Following this, the Council Presidency officially forwarded the accepted text to the chairs of the responsible committees of the European Parliament (IMCO and ENVI). This confirms that the Council (through Coreper) has already agreed on its position and supports the compromise.

What Happens Next?

With Coreper’s approval, the final phase of the legislative process begins:

1. Review and Vote in the European Parliament
The IMCO and ENVI committees will now examine the final text. Afterwards, the European Parliament will vote in plenary.

2. Formal Adoption by the Council
Once Parliament has voted, the regulation will be formally adopted by the Council of the EU. Since the compromise has already been politically endorsed, this step is considered a formality.

3. Publication and Entry into Force
After approval by both institutions:

  • Publication in the EU’s Official Journal
  • Entry into force typically 20 days later
  • Application after defined transition periods