ELV trilogue leads to selective circular economy

The European Council and the European Parliament have reached an agreement on a common text in the trilogue process for revising the EU End-of-Life Vehicles Regulation (ELV-R). TecPart – Association of Technical Plastic Products welcomes the generally positive signals from the planned increases in recycling quotas to 15 percent and then to 25 percent, as well as the included 20 percent closed-loop target, since these will strengthen investments in recycling and circular economy infrastructure for end-of-life vehicle recovery. However, the quotas are to be met exclusively with post-consumer recyclates. This exacerbates a key challenge: the supply gap for quality-assured recyclates for technical applications that cannot be obtained from household waste streams is further widened by the exclusion of post-industrial recyclates (PIR).

PIR exclusion slows down a key pillar of technical plastics cycles

As an association at the heart of plastics processing and recycling, with a focus on technical applications, practical standardization, and ambitious policy, TecPart sees the consequences of this decision particularly clearly.

“PIR recyclates are currently a key pillar for quality-assured, climate-friendly recycled material quantities in sensitive and safety-relevant plastic applications in automotive manufacturing. The exclusion of this material stream from the legal framework leads to a selective understanding of the circular economy that ignores existing industrial cycles and weakens existing structures. Furthermore, this represents a unique discrimination against plastics. A waste stream distinction between PIR and PCR does not exist for metals, paper, or glass,” explains Michael Weigelt, Managing Director of TecPart.

Market analyses – including the recent study by Porsche Consulting ^[1] and by BKV GmbH and Conversio GmbH ^[2] – show that PCR quantities of engineering plastics are not available in sufficient variety or consistent quality. PIR streams have been driving the industrial recycling of engineering plastics for decades. Their regulatory marginalization leads to higher CO₂ emissions and the loss of high-quality European material streams.

Transparently monitor the effects of PIR exclusion

From TecPart’s perspective, it is essential that the European Commission and the member states transparently monitor the economic and environmental impacts of the PIR exclusion and consider them in review processes and accompanying initiatives. Only a realistic development of the regulatory framework will ensure that Europe’s industrial, climate, and circular economy goals in the automotive sector remain achievable.

Recycling rates are rising – but Europe’s recycling base is crumbling.

The plastics recycling industry in Europe is in dire straits. High energy and production costs, massive price pressure from cheap imports, declining demand, and increasingly unaffordable insurance are forcing recyclers to reduce capacity or close sites. At the same time, mandatory recycling quotas are rising sharply due to EU packaging regulations, the (soon to be) EU End-of-Life Vehicles Directive, and other regulations. This economic and ecological paradox jeopardizes achieving these targets: while the demand for recyclates is growing rapidly, the infrastructure to support it is collapsing. To halt this trend, immediate and effective measures are needed: significant relief from electricity prices for energy-intensive recycling processes, government-backed insurance models to ensure companies remain insurable, CO₂ credits for emissions actually avoided, and reliable and expedited permitting processes for investments.

“Given the struggle for survival of plastics recycling companies, these relief measures must be implemented quickly, without bureaucracy, and effectively. Otherwise, even before the new recycling quotas come into effect, further capacity will be lost – and with it, precisely the quantities of recycled material that Europe urgently needs. The consequences for the plastics processors located here are unpredictable,” warns Michael Weigelt.

^[1] _{Porsche Consulting, TecPart, KI Kunststoff Information – White Paper “Quo vadis, PCR?”, 2025.}

^[2] _{BKV-GmbH – Conversio GmbH: Market forecast of recycled material availability, 2025.}

About TecPart – Association of Technical Plastic Products (TecPart)

TecPart – Association of Technical Plastic Products is the trade association representing the interests of manufacturers of technical plastic products in the public sphere, in politics, and in national and European bodies. Its members are primarily highly specialized experts in compounding and plastics recycling, additive manufacturing, thermoforming, injection molding, and other plastics processing methods. These companies develop, design, and produce technical plastic parts, as well as the tooling required for their manufacture. Their clients and customers include the automotive, electrical, mechanical engineering, and medical technology industries. With more than 310,000 employees in approximately 3,000 companies and annual sales of around €70 billion, plastics processing is one of the most efficient industrial sectors in Germany. The approximately 910 manufacturers of durable, technical plastic products that we represent employ around 100,000 people and generate annual sales of €19.7 billion. Further information can be found at www.tecpart.de.

Source

TecPart, press release, 2025-12-16.

Supplier

European Council
European Parliament
European Union
Tecpart – Verband Technische Kunststoff-Produkte e.V.

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