Landmark EU End-of-Life Vehicles Regulation (ELVR) Provisional Agreement Announced! Recycled Import Content Restrictions, Chemical Recycling Counts Towards Targets, Bio-based Materials Pending Review

Recently, the European Parliament and the Council of the EU released details of the provisional agreement reached on the End-of-Life Vehicles Regulation (ELVR).

The ELVR requires that new vehicles must contain a certain percentage of recycled plastic. New additions included in the provisional agreement are:

Allowing recycled content obtained via chemical recycling to count towards the recycled plastic content targets using the mass balance accounting method;
Only materials derived from post-consumer sources can count towards the recycled plastic content targets;
Bio-based materials and tire elastomers could potentially count towards the recycled plastic content targets following a review by the European Commission;
Granting new exemption powers to the European Commission.
The agreement was reached in December 2025 and published after being voted through by European Parliament committees on February 25, 2026. It will become law if voted through by the European Parliament plenary session and the Council of the EU.

According to the provisional agreement, the mandatory recycled plastic content requirements in end-of-life vehicles will be implemented in phases over 10 years, as follows:

● 6 years after the regulation enters into force: Minimum 15% recycled plastic content in new vehicles;
● 10 years after the regulation enters into force: Minimum 25% recycled plastic content in new vehicles.

At least 20% of these recycled plastic content targets must come from end-of-life vehicles (ELVs). This means the minimum requirement from ELVs is 3% after six years, and 5% after ten years.

This mandatory requirement applies to passenger cars, light commercial vans, general heavy-duty vehicles, motorcycles, and special-purpose vehicles, with exemptions for small-volume manufacturers of heavy-duty special-purpose vehicles.

The ELVR will also introduce:

● Design standards for new vehicles;
● Criteria for determining when a vehicle is considered an end-of-life vehicle;
● A ban on exporting end-of-life vehicles, requiring treatment only at authorized treatment facilities;
● A framework for ownership transfer;
● A cross-border Extended Producer Responsibility (EPR) mechanism.

Here are further details:

Chemical Recycling

The provisional agreement permits the use of the mass balance accounting method to count materials obtained through chemical recycling towards the recycled plastic content targets.

According to Article 6 of the provisional agreement, "For recycled plastics obtained through recycling methods other than mechanical recycling, the mass balance accounting method should be used, which shall be consistent with the mass balance accounting method for plastics recycling applicable to the definition of recycling in the Waste Framework Directive (2008/98/EC)." The European Commission is required to adopt an implementing act within 24 months after this regulation enters into force to establish a verification method for recycled content targets (including mass balance). The entry into force date of an EU regulation is the date of its publication in the Official Journal of the European Union.

Post-Consumer Material

Only recycled materials from post-consumer sources can count towards the minimum recycled content targets. Under the regulation, post-consumer waste is defined as "waste generated from products that have been placed on the market or supplied for distribution, consumption or use in a third country, whether for payment or free of charge, during commercial activities."

Bio-based Materials and Tire Elastomers

Within 72 months after the regulation enters into force, the European Commission will be required to publish an assessment report on the technological development and environmental performance of bio-based plastics and tire elastomers, and, "where appropriate," propose legislative proposals for sustainability requirements and targets—including the possibility of counting them towards the recycled content targets.

New Exemptions

The provisional agreement also grants new exemption powers to the European Commission. According to the provisional agreement, the Commission may postpone or temporarily lower the plastic content targets if "the supply of specific recycled plastics is insufficient or excessively priced, making it difficult to achieve the minimum recycled content percentages."

Imported Recycled Plastics

Recycled plastics from third countries (non-EU member states) shall not count towards the minimum recycled plastic content targets for 48 months after the relevant regulation enters into force.

Even when counting is permitted, strict requirements will apply (including independent third-party audit requirements)—which could limit the amount of material available from overseas.