Legislation in Germany: End-of-life Vehicle Ordinance

The End-of-life Vehicle Ordinance (Ordinance on the Transfer, Collection and Environmentally Sound Disposal of End-of-life Vehicles) is the legal basis for the environmentally sound disposal of end-of-life vehicles in Germany (that is the proper and safe recovery and disposal compatible with public welfare).

The End-of-life Vehicle Act (AltfahrzeugG) of 21 June 2002 (Federal Law Gazette I, p. 2199), which for the most part entered into force on 1 July 2002, transposes Directive 2000/53/EC on end-of-life vehicles (ELV Directive) into German law. Article 3 of the End-of-life Vehicle Act amended the End-of-life Vehicle Ordinance of 4 July 1997 (Federal Law Gazette I, p. 1666). In German, the name was changed from “Altauto-Verordnung" (End-of-life Car Ordinance) to “Altfahrzeug-Verordnung" (End-of-life Vehicle Ordinance) on 1 July 2002.

Key elements of the End-of-life Vehicle Ordinance:

The End-of-life Vehicle Ordinance applies to:

• vehicles used for the carriage of passengers and comprising no more than eight seats in addition to the driver’s seat (category M₁) pursuant to Annex II Section A of Directive 70/156/EEC,
• vehicles used for the carriage of goods and having a maximum weight not exceeding 3.5 tonnes (category N₁), pursuant to Annex II Section A of Directive 70/156/EEC, and
• three-wheeled motor vehicles pursuant to Directive 92/61/EEC, but excluding motor tricycles.

Anyone discarding, wishing to discard or having to discard a vehicle is obligated to transfer the vehicle only to an acceptance facility authorised in accordance with the End-of-life Vehicle Ordinance, to an authorised collection facility or an authorised dismantling facility. Acceptance and collection facilities merely collect end-of-life vehicles (ELVs) and are obligated to transfer them only to authorised dismantling facilities for the treatment itself. Dismantling facilities are obligated to transfer stripped vehicles (scrap bodies, body shells) only to an authorised shredding facility.

Operators of dismantling facilities are obligated to issue a certificate of destruction (in line with the model document of Annex 8 of the Vehicle Registration and Licensing Regulations) to the last holder without delay after receiving the ELV. By issuing this certificate of destruction, the operator guarantees that the ELV will undergo proper recovery in line with the provisions of the End-of-life Vehicle Ordinance.

In the Internet, the Joint Agency for End-of-life Vehicles (Gemeinsame Stelle Altfahrzeuge [GESA] of the Länder) publishes information on all authorised dismantling and shredding facilities as well as information on some authorised acceptance and collection facilities.

Vehicle manufacturers are generally obligated to take back any ELV of their make from the last holder. In general, manufacturers also have to take back ELVs free of charge once they have been transferred to an authorised collection facility or an authorised dismantling facility previously selected by the manufacturer for this purpose. The general obligation to take back ELVs free of charge is waived, however, if for example waste was added to the ELV or if it no longer contains essential components, in particular drivetrain, body, chassis, catalytic converter or electronic controls for vehicle functions. This means that although manufacturers are still obligated to take back the ELV in such cases, they do not have to do so free of charge.

Manufacturers are also obligated to ensure a broad network of options for ELVs to be returned. The distance between the residence of the last holder and an authorised collection facility or an authorised dismantling facility designated by the manufacturer for that purpose must be no greater than 50 kilometres.

Consequently, ELVs of a certain make are accepted by authorised collection facilities of the respective manufacturer or authorised dismantling facilities that are part of the manufacturer's network for taking back ELVs – free of charge as described above. Any other authorised facility may take back ELVs of this make as well. They may, however, charge for this service.

The obligations that apply to vehicle manufacturers equally apply to commercial importers of vehicles.

From 2006 to 2014, manufacturers, commercial importers, distributors, ELV disposal facilities and motor vehicle insurance companies already had to work together to ensure that, of the average net weight of an ELV,

• at least 80 percent would be subject to reuse or recycling and
• at least 85 percent would be subject to reuse or recovery.

From 2015 on, the rates were raised to

• at least 85 percent (reuse / recycling) and
• at least 95 percent (reuse / recovery).

These rates apply to the total volume of end-of-life vehicles in a given year and do not have to be met for each individual ELV.

From 2005/2006 on, Germany already regularly surpassed the respective mandatory targets and recovery rates of 80 and 85 percent laid down in the End-of-life Vehicle Ordinance for the period from 2006 to 2014. Even the higher rates of 85 and 95 percent, applicable from 2015 on, have regularly been surpassed in Germany almost without exception since 2006 and 2010 respectively. However, for the first time in 2019 and in the following year, the 95 percent target for reuse/recovery was slightly missed and only 93.6 percent and 94.0 percent respectively was achieved (see Statistics on ELVs and Annual reports on end-of-life vehicle reuse/recycling/recovery rates in Germany). The main reason for this in both years was that shredding facilities received very few stripped vehicles in comparison to the amount of end-of-life vehicles. For the year 2021, Germany again surpassed the respective mandatory targets.

The overall recovery rate of more than 100 percent achieved every year between 2010 and 2014 was a consequence of the 2009 environmental premium for the recovery of ELVs: As the number of discarded ELVs in 2009 was approximately four times higher than the average annual amount, the capacities of dismantling and shredding facilities were exceeded, and ELVs had to be put into interim storage. In other words, fewer ELVs underwent processing and recovery in 2009 than were actually consigned to scrapping, so recovery rates dropped significantly that year, even though the targets were still met. From 2010 to 2014, in contrast, more ELVs were treated or recovered than had been returned each year, as stockpiles from interim storage were successively reduced. As a result, exceptionally high recovery and recycling rates were achieved during those five years. By 2015, the situation had normalised again; the effects of the environmental premium are no longer being felt.

Since 2006, the recovery rates have been supplemented by facility rates. These rates are based on the annual total net weight of ELVs (or stripped vehicles) returned to a facility. The different types of facilities have to meet these rates as follows:

• Dismantling facilities:
  reuse or recycling of at least 10 percent of non-metallic share of ELVs,
• shredding facilities:
  reuse or recycling of at least 10 percent of non-metallic share of ELVs,
  
  Since 2015 (higher facility rates for shredding facilities):
  recycling of 5 percent and an additional 10 percent of recovery for non-metallic shredding residuals.

As of 1 July 2003, it is prohibited to place on the market materials and vehicle components containing the heavy metals lead, mercury, cadmium or hexavalent chromium. Exemptions are laid out in Annex II of the EC Directive on end-of-life vehicles. The applicable version of this Annex directly enters into force in Germany due to the dynamic reference in the German End-of-life Vehicle Ordinance. Annex II of the EC Directive on end-of-life vehicles is amended regularly in line with scientific and technological progress. It was last updated by the delegated Directive (EU) 2023/544 of 16 December 2022 amending (Annex II to) Directive on end-of-life vehicles.

(that is the proper and safe recovery and disposal compatible with public welfare)

First of all, ELVs undergo pre-treatment in authorised dismantling facilities, in particular by being drained of service fluids such as fuel, brake fluid and oil. Once drained, the ELVs are dismantled, meaning that components, substances and materials are removed either due to their harmful characteristics (for example components containing asbestos or mercury) or because they are intended for reuse or recovery (for example catalytic converters or aluminium rims). After this treatment in an authorised dismantling facility, the ELVs are referred to as stripped vehicles and must in general be brought to an authorised shredding facility for shredding.

More than a thousand authorised dismantling facilities and several dozen authorised shredding facilities in Germany ensure the environmentally sound disposal of ELVs.