roeren inside: with Guido Lipinski, Managing Director of BDSV, on the new ELV-Regulation

Published on

roeren inside 01/2025

We are delighted to present the first edition of our new interview format roeren inside. With roeren inside, we would like to give you an insight into the topics that move us in our projects and at the same time create a platform for reflection and joint discourse on current and forward-looking issues. Together with leading minds from the worlds of business and science, we shed light on key aspects of the areas of expertise that shape our day-to-day consulting work.

Simon Meitz and Tim Schneider in dialog with Guido Lipinski, Managing Director BDSV

The European automotive industry is currently in a pioneering phase: the new EU End-of-Life Vehicles Directive (ELV) aims to raise the circular economy and sustainability to a new level. But what challenges does this ambitious directive entail and how practicable are the new requirements really? To find out, we invited Guido Lipinski, Managing Director of the largest steel recycling association in Europe (BDSV), for a discussion. Together with our roeren experts Simon Meitz and Tim Schneider, he provides insights into recycling practice, highlights weaknesses in the ELV regulation and shows concrete approaches on how regulatory requirements and economic reality can be reconciled. In this first issue of roeren inside, find out why a future-oriented circular economy requires not only political but above all entrepreneurial strategies – and which course must be set now to ensure sustainable success in recycling practice.

The new ELV Regulation as a path to a circular economy or a toothless tiger? A clear perspective from the recycling industry.

Simon Meitz: Mr. Lipinski, as Managing Director of the BDSV, you represent the interests of companies in steel recycling and the waste disposal industry. The revised ELV Regulation brings with it stricter recycling requirements and new regulations for car recycling. Can you give us an overview of the current challenges and biggest problem areas in car recycling?

Guido Lipinski: The challenges are complex. On the one hand, we have to prepare for the stricter recycling requirements, especially for plastics. On the other hand, the planned obligations to remove components present us with enormous practical problems. Added to this are questions of financing, as the extended producer responsibility is not regulated clearly enough. Our industry is under pressure to realign itself both in regulatory and operational terms. The long deadlines for handing over end-of-life vehicles to certified recycling facilities are also completely incomprehensible in our view. Furthermore, we see problems in the implementation of the new requirements for deregistering vehicles. In future, this will only be possible with a certificate of destruction, as the law already stipulates. Although this is a step in the right direction, it presupposes that the relevant processes can also be implemented efficiently by the responsible authorities. Without consistent controls, the new regulations will remain a toothless tiger.

Tim Schneider: Let’s stick to the deadlines. The proposal to store end-of-life vehicles at collection points for up to one year has been met with criticism. What exactly do you see as the risks of this regulation? Guido Lipinski: The risks are serious. Such a long deadline means that some vehicles are cannibalized before they reach the recycling facilities. This particularly affects valuable components, which are often removed illegally. In addition, harmful substances such as oils or batteries could be stored improperly, which exacerbates environmental problems. Such delays also make it considerably more difficult to reuse vehicle parts. A short deadline of one month would be a sensible solution here. In addition, collection points must be better controlled. It must not be allowed to happen that vehicles simply “disappear” before they are properly recycled. We also believe that manufacturers have a responsibility here to ensure that their vehicles are disposed of in the intended manner.

Simon Meitz: Another key issue is recycling rates. The ELV regulation requires that at least 30% of the plastic content in end-of-life vehicles is recycled, but at the same time manufacturers only have to use 6.25% recyclates in new vehicles. How do you assess this discrepancy?

Guido Lipinski: This discrepancy is not only illogical, but counterproductive. Waste managers are forced to achieve high recycling rates, while manufacturers have hardly any incentive to use these materials. This makes it difficult to establish stable secondary markets and results in high storage costs. We need a harmonization of these quotas so that recycled materials can effectively flow back into the economic cycle and, after some time, an evaluation of the feasibility of the new quotas. But above all, we need sufficient transitional periods, because the vehicles that are returned today contain unlabeled and often different plastics, the recycling of which is not economically feasible at all. If the automotive industry were to begin today to incorporate plastics into cars in the sense of a design for recycling, then it would take another 15 years or so for these cars to start arriving at the recycling plants. What must not happen under any circumstances, however, is that the quotas for the automotive industry are dropped during the ongoing process, but remain with the recyclers.

Tim Schneider: The ELV Regulation includes the obligation to dismantle certain components What are the biggest challenges for recyclers here?

Guido Lipinski: The list of parts that must be removed before shredding is extensive. But not all of these requirements are practicable. Dismantling accident vehicles is often technically impossible. In addition, there is no market for many parts, which leads to unnecessary costs. These requirements should be made more flexible so that only those parts that can realistically be recycled or reused are removed. The possible ban on mixing end-of-life vehicles with other waste, such as metallic packaging materials or electronic waste, in the shredding process is also particularly problematic. Although the materials often have similar properties, the obligation to mono-shred leads to higher storage and transportation costs as well as additional CO2 emissions. We should take a pragmatic approach here.

Simon Meitz: A key aspect of the new ELV Regulation is the extended producer responsibility. What improvements would be necessary here in your view?

Guido Lipinski: Manufacturers must be held more accountable. The assumption of financial responsibility by manufacturers, as envisaged in principle in the new ELV Regulation, is a positive step. However, it is not enough to only bear the costs if recycling plants make losses. For components whose removal is mandatory, we not only need the costs to be covered, but also a positive business case for the recyclers in every case! It is also important that manufacturers and recycling plants are equally represented in the decision-making processes in order to ensure a fair balance of interests. There is a considerable imbalance here due to the market power of producers in relation to recycling plants.

Tim Schneider: Finally, let’s talk about the overall strategy. What are your proposals for making the industry sustainable and competitive?

Guido Lipinski: We need to design the regulations in such a way that they are both effective and practicable. This means shorter deadlines for the handover of end-of-life vehicles, harmonization of recycling quotas and realistic specifications for the removal of components. At the same time, financing by manufacturers should be clearly regulated. With these adjustments, we can not only meet the legal requirements, but also drive innovation and efficiency in our industry. Another important point is the further training of recyclers. The demands on the industry are constantly increasing and only through targeted training programs can we ensure that everyone involved is up to date. Initiatives such as the iSM seminars that we offer in the association are an important building block here, as are our guidelines for the conversion of recyclers to electromobility.

Tim Schneider: Mr. Lipinski, thank you for these detailed and informative insights. Your perspective shows how important it is to tackle the current challenges in a broad discussion. We look forward to contributing your ideas to the debate!

About our guest

Fully qualified lawyer and in-house lawyer Guido Lipinski

is Managing Director of the Bundesvereinigung Deutscher Stahlrecycling- und Entsorgungsunternehmen e.V. (Federal Association of German Steel Recycling and Disposal Companies), where he is responsible for the Car Reassembly Group (FAR), the nationwide car recyclers’ association, in addition to many other areas. With over 16 years of experience in various fields of activity in the recycling industry, his clear objective is a functioning circular economy with a balance between economy and ecology. In his role as managing director of the association, he supports the steel recycling industry in Germany, not only in the constantly changing legal framework, but also in its implementation in practice (under licensing law).

Our roeren experts in the field of circular economy

The circular economy is a key area of expertise at roeren. Through years of experience in our project work and continuous exchange with different industries, we have been able to build up in-depth knowledge and generate solutions. Today, we use this know-how in a targeted manner to promote sustainable concepts, develop new business models and implement R-strategy projects to close loops.

Dipl. iur. oec. univ. Simon Meitz

is Head of Strategy Circular Economy and Production Systems at roeren and a strategy consultant with over 15 years of international experience in Europe, the United Arab Emirates and Qatar. As co-founder of EYCarbon and member of the Sustainability Steering Committee Europe West, he drove ESG initiatives at EY in the context of regulation and industrial stakeholders. In doing so, he provided impetus for sustainability and innovation. Simon Meitz is the author of several specialist publications, including articles on decarbonization and green transformation. He frequently shares his expertise on sustainability topics as a speaker and interview partner. In his role as a start-up mentor, he also supports UnternehmerTUM’s XPRENEURS start-up program, for example.

Tim Schneider, M. Sc.

is a manager and authorized signatory at roeren and an expert in logistics and production in the context of the circular economy. With five years in the logistics industry and almost ten years of consulting experience, the engineer designs circular business models and efficient reverse supply chains that contribute to closing raw material cycles. Tim Schneider has extensive experience in strategic development, business case design and implementation of sustainable business models in the automotive industry. He supports the world’s largest automotive companies in the implementation of closed loops. He is also committed to building strategic partner networks and ecosystems in the context of new regulatory frameworks.

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