The European Green Deal and COVID-19 recovery funds offer a window of opportunity for policymakers and industry players to act, and put the automotive industry on a transition pathway to a Paris-aligned, circular future. The value at stake for industry, society, and environment is immense: road transport accounts for 20% of Europe’s carbon emissions. To address this, the EU is conducting various important revisions of key legislations and complementary policy tools in the coming years. This report presents main policy interventions linked to specific EU "lock-in moments" – major policy revision processes – that will set the benefits of a circular automotive industry in motion.

The Circular Cars Initiative (CCI) is dedicated to fostering circular manufacturing, business models and policy agenda for an automobility system that is convenient, affordable, and firmly grounded within a 1.5°C climate scenario. Led by the World Economic Forum and the World Business Council for Sustainable Development (WBCSD), in partnership with the European Institute for Innovation and Technology’s Climate-KIC, SYSTEMIQ, Accenture and McKinsey, CCI includes over 70 organizations.