Regulatory barriers for the circular economy Recycling of palladium from catalytic converters in vehicles thinkstep, Margarida Gama

Overview

Main regulatory barrier / gap Legal differentiation between used and End-of-Life vehicles in order to avoid illegal shipment of discarded cars and insufficient regulation on the export of vehicles [1]

Solutions proposed Establishing a clear definition of End-of-Life of vehicles in the European End-of-Life Vehicle Directive 2000/53/EG Introduction of reversed burden of proof procedures for the export of vehicles, i.e. exporter has to prove the usability of the vehicle [2]

Effects of regulatory barrier Economic effects: Cost of non-action: estimated 115 M€ leave the EU annually Palladium recyclers: limited access to (exported) autocatalysts Investments: non-predictable input of palladium creates lack of trust for investments [3] [4]

Effects of regulatory barrier Environmental effects if barrier is removed: Lower consumption of natural resources by increasing recycling of palladium Lower energy consumption and consequent greenhouse gas emissions by producing secondary palladium (comparing with primary): app. less 20% [5]

Observations Recycling of palladium: always preferred EoL option [6] Recycling of palladium: always preferred EoL option Main effect of export of second hand vehicles: Limited access of EU disassemblers and recyclers to converters No tracking of the EoL of vehicles outside of EU (which treatment?) Better control of exports can be achieved through: Clear definition of EoL vehicle Reversed burden of proof procedures Data collection is key to answer questions - e.g.: What happens to exported vehicles and Pd when reaching EoL? Recycling standards and -rates in main export countries? Alternative business models (e.g. leasing) could contribute to better track EoL of vehicles

Thank you! Image Sources [1] http://img.welt.de/img/wirtschaft/crop134613577/9896933252-ci3x2l-w900/Auto-Export-Ford.jpg [2] http://wolfsonlawfirm.com/wp-content/uploads/2016/01/photodune-14127163-burden-of-proof-concept-xs.jpg [3] http://thumbs.dreamstime.com/z/pieces-broken-catalytic-converter-pices-part-car-having-platinum-rhodium-palladium-55331787.jpg [4] http://ec.europa.eu/environment/waste/images/elv.jpg [5] http://www.xylem.com/assets/publishingimages/applications-industries/mining-industry.jpg?RenditionID=3197&Width=1170&Height=710 [6] http://www.luxurypalladium.com/img/bg/raw.png