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The Council of the European Union is scheduled to adopt a new Regulation on circularity requirements for vehicle design and end-of-life management on 24 June 2026, after the European Parliament approved its first-reading position on 18 June 2026. The legislative text, which replaces Directives 2000/53/EC and 2005/64/EC and amends several other Regulations, was submitted by the European Commission on 13 July 2023. Hungary and Austria voted against the text, while Slovakia abstained.

The Regulation introduces mandatory circularity requirements for vehicle design, including targets for recycled content, reusability, and recyclability, as well as extended producer responsibility for end-of-life vehicles. It aims to reduce waste, increase resource efficiency, and support the EU's circular economy objectives. The European Economic and Social Committee delivered a favourable opinion, while the Committee of the Regions decided not to issue an opinion.

Vehicle manufacturers will face new design and reporting obligations, potentially increasing compliance costs but also creating opportunities for innovation in recyclable materials and modular design. Waste treatment operators and recyclers stand to benefit from increased material recovery and clearer regulatory frameworks. Consumers may see higher upfront vehicle costs but lower long-term waste management fees. National authorities will need to adapt enforcement systems and may face administrative burdens.

Following Council approval, the act will be signed by the Presidents of the European Parliament and of the Council and published in the Official Journal, entering into force 20 days later. The Regulation will apply from 1 January 2028, with transitional provisions for certain requirements.

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