American Recycler SEP 2024 / Read original article
You may think auto recycling is just about scrapping end-of-life vehicles, but both state and federal legislation initiatives are shifting the landscape dramatically. States are pushing for stricter recycling mandates and incentives for using recycled materials in manufacturing.
Meanwhile, federal initiatives are exploring tax credits for eco-friendly practices in the industry. These changes could redefine profitability in auto recycling and drive innovation.
You may think auto recycling is just about scrapping end-of-life vehicles, but both state and federal legislation initiatives are shifting the landscape dramatically. States are pushing for stricter recycling mandates and incentives for using recycled materials in manufacturing. Meanwhile, federal initiatives are exploring tax credits for eco-friendly practices in the industry. These changes could redefine profitability in auto recycling and drive innovation.
“The nature of automotive content – including light weight and battery materials – has changed dramatically with the expansion of electric vehicle (EV) production,” said Jamie Tucker, lobbying and public policy partner at Akin, LLP. “These different materials have different environmental attributes forcing policy makers to view recycling much differently.”
In addition, Tucker pointed out that some policy makers at both the federal and state level are focusing on extended producer liability under which the manufacturer has responsibility for its product throughout its life-cycle, while others have concerns about the costs of such an approach.
“As with many other environmental issues, getting consensus in Congress will continue to be a challenge, so action is more likely at the state level or through regulatory action at the Federal level,” Tucker said. “At the same time policy makers recognize the need to create better recycling technologies, especially with respect to advanced battery materials, so they have been willing to provide funding for R&D to advance those technologies.”
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