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

2. Overview

3. 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]

4. 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]

5. 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]

6. 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]

7. 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

8. Thank you! Image Sources
[1] [2] [3] [4] [5] [6]