Inquiry into Regulation (EU) 2026/1738 of the European Parliament and of the Council of 8 July 2026 on circularity requirements for vehicle design and on management of end-of-life vehicles, amending Regulations (EU) No 168/2013, (EU) 2018/858, (EU) 2019/1020 and (EU) 2023/1542 and repealing Directives 2000/53/EC and 2005/64/EC

Ordered by the Windsor Framework Democratic Scrutiny Committee

to be published 27 August 2026.

 

Report: NIA 188/22-27 Windsor Framework Democratic Scrutiny Committee

Contents

Purpose and Membership

Purpose

Membership

Introduction

The Replacement EU Act

The Committee’s Examination of the Proposed Replacement EU Act

The Committee’s Decision on Whether to Hold an Inquiry

The Inquiry Process

The Committee’s Conclusions

Next Steps

Links to Appendices

Appendix A: Minutes of Proceedings

Appendix B: Memoranda and Other Papers

Appendix C: Minutes of Evidence

Appendix D: Consultation Responses

 

Purpose and Membership

Purpose

The Windsor Framework Democratic Scrutiny Committee is a standing committee of the Northern Ireland Assembly established under Schedule 6B to the Northern Ireland Act 1998.

The purpose of the Committee is to assist with the observation and implementation of Article 13(3a) and Article 13(4) of the Windsor Framework.

The functions of the Committee include:

(a) the examination and consideration of new EU acts and replacement EU acts;

(b) the conduct of inquiries and publication of reports in relation to replacement EU acts;

(c) engagement with businesses, civil society and others as appropriate in relation to replacement EU acts;

(d) engagement with the UK Government in relation to replacement EU acts;

(e) engagement with Ministers and Northern Ireland departments in relation to replacement EU acts;

(f) the collation and publication of evidence collected as part of its other activities; and

(g) dealing with other matters (including legislative proposals which may become new EU acts or replacement EU acts) which the Committee considers to be connected with its purpose or other functions.

A replacement EU act means an EU law which updates, by amending or replacing, any of the relevant[1] EU laws which already apply in Northern Ireland, as listed under Annex 2 of the Windsor Framework. Areas of EU law that apply in Northern Ireland include legislation on goods, animal and plant health rules, rules on agricultural production, VAT and excise on goods, and state aid rules.The EU’s Customs Code also applies to goods entering Northern Ireland.There is a procedure by which members of the Assembly may seek to prevent the application of a replacement EU act (an emergency brake mechanism known as the Stormont Brake). View further information on the Stormont Brake.

A new EU act means a new EU law which falls within the scope of the Windsor Framework, but which neither amends nor replaces an EU act listed in the Annexes. The Northern Ireland Assembly has a role, by means of an “applicability motion”, in setting out its position on whether a new EU act should be added to the list of EU laws applicable in Northern Ireland. View further information on applicability motions.

Membership

The Committee has nine members, including a Chairperson and Deputy Chairperson, and a quorum of five members. The membership of the Committee is as follows:

Ms Ciara Ferguson MLA (Chairperson)[2]

Mr David Brooks MLA (Deputy Chairperson)[3]

Dr Steve Aiken OBE MLA

Mr Cathal Boylan MLA[4] [5]

Mr Jonathan Buckley MLA[6]

Mr Pádraig Delargy MLA[7] [8]

Mr Peter Martin MLA[9] [10]

Ms Kate Nicholl MLA[11]

Mr Eóin Tennyson MLA[12]

Introduction

1. This report sets out the conclusions of an inquiry by the Windsor Framework Democratic Scrutiny Committee (‘the Committee’) into a published replacement EU act: Regulation (EU) 2026/1738 of the European Parliament and of the Council of 8 July 2026 on circularity requirements for vehicle design and on management of end-of-life vehicles, amending Regulations (EU) No 168/2013, (EU) 2018/858, (EU) 2019/1020 and (EU) 2023/1542 and repealing Directives 2000/53/EC and 2005/64/EC.
2. The Regulation is a replacement EU act because it repeals Directive 2005/64/EC on the type-approval of motor vehicles with regard to their reusability, recyclability and recoverability and amending Council Directive 70/156/EEC which applies in Northern Ireland under the Windsor Framework. Further, the Regulation amends Regulation (EU) No 168/2013, Regulation (EU) 2018/858, Regulation (EU) 2019/1020, and Regulation (EU) 2023/1542, which also apply in Northern Ireland under the Windsor Framework.[13] These are consequential amendments to give effect to the Regulation.
3. The replacement EU act applies in Northern Ireland under Article 13(3) of the Windsor Framework but is subject to the mechanism set out in Article 13(3a) of the Windsor Framework. This mechanism provides for a replacement EU act, or relevant parts of a replacement EU act, not to apply in Northern Ireland if the United Kingdom Government (‘UK Government’) notifies the EU within two months of the act’s publication in the EU Official Journal.
4. The UK Government may only make this notification if it is satisfied that the conditions in Article 13(3a) of the Windsor Framework have been met and that the procedures set out in its Unilateral Declaration on the involvement of the institutions of the 1998 Agreement have been followed. These procedures provide, amongst other things, that 30 MLAs from at least two parties have notified the UK Government of their wish that the emergency brake mechanism should be applied. The 30 MLAs cannot include the Speaker or a Deputy Speaker.
5. If the UK Government is satisfied that the necessary conditions have been met, it will notify the EU in the Joint Committee. The EU law will not apply in Northern Ireland in its new form two weeks later. The older version of the EU law will still apply. The relevant law would then be discussed in the EU-UK Joint Committee under the process for new EU laws - Article 13(4). The UK Government must not agree (apart from in exceptional circumstances or where the new EU act would not create a new regulatory border between Great Britain and Northern Ireland) to adopt the new law unless the Assembly has passed a motion with cross-community support, known as an applicability motion.
6. The replacement EU act in question - Regulation (EU) 2026/1738 - was published in the EU Official Journal on 24 July 2026. The UK Government formally notified the Committee of the act’s publication on 30 July 2026.
7. Under paragraph 8(1) of Schedule 6B to the Northern Ireland Act 1998, the Committee must decide no later than five working days after the day on which it was notified of the replacement EU act whether it wishes to hold an inquiry. In reaching a decision, paragraph 8(2) of Schedule 6B requires the Committee to have regard to whether it appears likely that the replacement EU act:

• • significantly differs (in whole or in part) from the content or scope of the EU instrument which it amends or replaces; and
  • would have a significant impact specific to everyday life of communities in Northern Ireland in a way that is liable to persist.

8. The Committee may also have regard to any other matters it considers appropriate.

The Replacement EU Act

9. As outlined in the Introduction Section, the replacement EU act[14] repeals and replaces Directive 2005/64/EC on the type-approval of motor vehicles with regard to their reusability, recyclability and recoverability and amending Council Directive 70/156/EEC. The replacement EU act also amends Regulation (EU) No 168/2013, Regulation (EU) 2018/858, Regulation (EU) 2019/1020, and Regulation (EU) 2023/1542, which apply in Northern Ireland under the Windsor Framework.
10. Article 58 of the EU act sets out that some parts would not apply in Northern Ireland. Information on the provisions of the EU act which apply and do not apply under Article 13(3) of the Windsor Framework can be found in the UK Government Explanatory Memorandum and the departmental assessments of impact (Appendix B).
11. In proposing the EU act, the European Commission stated that its overall objective is “to modernise the EU existing legislation and to improve the functioning of the EU single market while reducing the negative environmental impacts linked to the design, production, service life and end-of-life treatment of vehicles and contributing to the sustainability of the automotive and recycling sector.”
12. Provisions in the EU act which would apply in Northern Ireland under Article 13(3) of the Windsor Framework include:

• • Mandatory targets for recycled plastic content in new vehicle types (at least 25% within ten years);
  • A requirement for the design of new vehicle types to not hinder the removal and replacement of certain parts and components in vehicles, including electric batteries;
  • An obligation for manufacturers to prepare a circularity strategy for each new vehicle type;
  • Requirements in relation to the removal and replacement of parts, components and materials contained in vehicles;
  • Detailed rules on labelling of parts, components and materials;
  • The establishment of a digital circularity vehicle passport, which aims to improve the provision of information on the safe removal and replacement of vehicle parts and components; and
  • Conditions for transferring the ownership of and exporting used vehicles.

13. Information on the vehicle categories to which each of these provisions applies, and any exemptions from those provisions, can be found in the UK Government Explanatory Memorandum and the departmental submissions (Appendix B).

 

The Committee’s Examination of the Proposed Replacement EU Act

14. At its meeting on 20 February 2025, the Committee considered information provided by the Executive Office on proposed new and replacement EU acts that had started their legislative passage before the Committee was established.
15. The proposed EU act, COM/2023/451 (which was later to become the replacement act which is the subject of this report), was identified by the Committee as an act that was likely to be notified as a published act in the future.
16. The Committee considered matters relating to its examination of the proposed replacement EU act, including its decision to consider the proposed act, at five meetings. The Minutes of Proceedings can be found at Appendix A.
17. Following its decision to consider the proposed act, the Committee agreed to request a departmental assessment of impact, to consider whether it appeared likely that the proposed EU act would have a significant impact specific to everyday life of communities in Northern Ireland in a way that is liable to persist. Assessments of impact from the Department of Agriculture, Environment, and Rural Affairs (DAERA) and the Department for Infrastructure (DfI) can be found at Appendix B.
18. At its meeting on 10 April 2025, the Committee considered the assessments of impact and agreed to schedule a departmental oral evidence session, and to request written and oral legal advice.
19. At its meeting on 15 May 2025, the Committee received legal advice on the proposed replacement EU act and noted that it indicated that the proposed EU act significantly differs in part from the content or scope of the current Regulations and Directive.
20. At the same meeting, the Committee heard oral evidence from DAERA and DfI officials. The minutes of the evidence session can be found at Appendix C. A series of questions were sent to DAERA and DfI in advance of the evidence session. Written responses to these questions can be found at Appendix B.
21. The Committee also considered the UK Government’s Explanatory Memorandum on the proposed EU act, dated 11 April 2024, as well as a report from House of Commons European Scrutiny Committee covering the proposed EU act, and relevant correspondence published by the House of Lords European Affairs Sub-Committee on the Windsor Framework. These documents can be found at Appendix B.
22. The Committee agreed to seek the views of stakeholders identified by the Assembly’s Research and Information Service (RaISe) as being affected, or who would be affected, if the proposed replacement EU act was to apply in Northern Ireland. A list of the stakeholders identified by RaISe can be found at Appendix D. The Committee opted to use Citizen Space as a platform to facilitate this engagement. The Citizen Space survey launched on 15 May 2025 and closed on 12 June 2025.
23. The Committee agreed to ask the UK Government to clarify which specific provisions of the proposed EU act would apply in Northern Ireland under Article 13(3) of the Windsor Framework.
24. The Committee also asked RaISe to monitor the progress of the proposed EU act through the EU legislative system.
25. At its meeting on 26 June 2025, the Committee considered a response received from British Glass to its Citizen Space survey, and email responses from the Electric Vehicle Association Northern Ireland and the Office for Environmental Protection (nil returns). These can be found at Appendix D.
26. At the same meeting, the Committee considered the UK Government’s response, dated 29 May 2025, which stated that certain articles of the proposed EU act would not apply under Article 13(3). The UK Government’s response can be found at Appendix B. The Committee noted that the Council of the European Union’s negotiating position included a new provision entitled "Applicability to and in the United Kingdom in respect of Northern Ireland". The Committee agreed to send both the negotiating position and the UK Government’s response to Legal Services, DAERA, and DfI.
27. The Committee also requested that DAERA and DfI provide revised assessments of impact if any changes were proposed by the Council of the EU or the European Parliament which would have a significant impact specific to everyday life of communities in Northern Ireland in a way that is liable to persist.
28. On 26 February 2026, following publication of the provisionally agreed text of the proposed EU act, the Committee requested revised assessments of impact from DAERA and DfI, or confirmation that the previous assessments remained unchanged. DfI’s response and DAERA’s revised assessment of impact can be found at Appendix B. The Committee agreed to re-issue its request to DAERA once there was clarity on the proposed EU act's application under Article 13(3) of the Windsor Framework. However, the Committee was then informed that the EU act’s applicability under the Windsor Framework would only be confirmed when the UK Government provided its Explanatory Memorandum on the published EU act.

The Committee’s Decision on Whether to Hold an Inquiry

29. The Committee met on 6 August 2026 to decide whether or not to conduct an inquiry into the published EU act: Regulation (EU) 2026/1738.
30. To assist it in reaching a decision, the Committee considered legal advice on whether it appeared likely that the published replacement EU act significantly differs (in whole or in part) from the content or scope of the EU instruments which it amends or replaces. The Committee noted that the legal advice indicated that the published replacement act significantly differs, in part, from the content and scope of the Regulations and Directive which it amends or replaces.
31. The Committee also considered whether it appeared likely that the published replacement EU act would have a significant impact specific to everyday life of communities in Northern Ireland in a way that is liable to persist. It did this by: considering assessments of impact provided by DAERA and DfI and listening to oral evidence from DAERA and DfI officials; examining all the evidence gathered as part of its consideration of the proposed EU act; and considering an Explanatory Memorandum on the published EU act from the UK Government (dated 4 August 2026).
32. The evidence gathered as part of the Committee’s consideration of the proposed replacement EU act, the assessments of impact, and the Explanatory Memorandum can be found at Appendix B. The minutes of the oral evidence session can be found at Appendix C.
33. Having had regard to whether it appears likely that Regulation (EU) 2026/1738:

• • significantly differs (in whole or in part) from the content or scope of the EU instrument which it amends or replaces; and
  • would have a significant impact specific to everyday life of communities in Northern Ireland in a way that is liable to persist,

the Committee decided to hold an inquiry into the replacement act. This decision was published on the Committee’s webpage.

 

The Inquiry Process

34. In conducting an inquiry, paragraph 9(2) of Schedule 6B to the Northern Ireland Act 1998, requires the Committee to “seek substantive discussion and engagement” with the UK Government, the relevant Northern Ireland Minister or department, and, to the extent that the Committee considers appropriate, representatives of businesses and civil society affected by the replacement EU act, or who would be affected, if the act was to apply in Northern Ireland. The Committee may also consider any matters it deems appropriate.
35. The Committee had to conclude its inquiry and publish a report setting out its conclusions no later than 15 working days before the end of the two-month scrutiny period. The scrutiny period started when the replacement EU act was published in the EU Official Journal on 24 July 2026 and therefore ends on 24 September 2026.
36. The Committee considered matters relating to its inquiry, including making a decision on whether to conduct an inquiry, at four meetings. The Minutes of Proceedings can be found at Appendix A.
37. At its meeting on 6 August 2026, the Committee agreed to seek substantive discussion and engagement with the UK Government. It therefore wrote to the UK Government to seek its views on whether applying, or not applying, the replacement EU act would have an impact specific to everyday life of communities in Northern Ireland in a way that is liable to persist. In considering the matter of divergence, details of the position in England, Scotland and Wales were also requested. The UK Government’s response, dated 17 August 2026, can be found at Appendix B.
38. At this meeting, the Committee also agreed to seek substantive discussion and engagement with the relevant Northern Ireland departments – DAERA and DfI. Therefore, it requested that departmental officials attend the Committee meeting on 13 August 2026 to give oral evidence.
39. The Committee asked DAERA to provide trade statistics on Northern Ireland businesses trading car parts and used vehicles into the EU market. DAERA and DfI were also asked to provide further information on any questions which were not fully addressed in the evidence session on 6 August 2026. Responses from DAERA and DfI can be found at Appendix B.
40. Further, the Committee agreed to seek substantive discussion and engagement with representatives of business and civil society. Key stakeholders were identified by the Assembly’s Research and Information Service, as being affected, or who would be affected, if the replacement EU act was to apply in Northern Ireland. The list of stakeholders identified by RaISe is at Appendix D. The Committee opted to use Citizen Space as a platform to facilitate this engagement.
41. A Citizen Space survey asking for views on the impact of the replacement EU act was launched on 6 August 2025 and closed on 16 August 2026. The survey, which was publicised widely, was also open for response by any other representatives of business and civil society as well as members of the public. DAERA was also asked to share the Citizen Space survey with stakeholders which it had previously consulted.
42. Departmental officials attended the Committee meeting on 13 August 2026 to give oral evidence, as requested. The minutes of the evidence session are included at Appendix C. Following the meeting, DAERA submitted additional information from the stakeholders it had consulted in relation to the replacement EU act. This submission, dated 17 August 2026, is included at Appendix B. DAERA also provided additional information from the Driver and Vehicle Licensing Agency regarding the export of used vehicles to the EU market. This submission, dated 24 August 2026, is also included at Appendix B.
43. At its meeting on 20 August 2026, the Committee noted that no responses were received to its Citizen Space survey.
44. The Committee deliberated on all the evidence received at its meeting on 20 August 2026. The evidence received is not rehearsed in this section of the report; a complete picture of the written and oral evidence can be found in the Appendices.
45. At its meeting on 27 August 2026, the Committee agreed its Inquiry report and that it should be published.

The Committee’s Conclusions

46. In reaching its conclusions, the Committee has carefully considered all the evidence provided to it. The Committee has focused in particular on the two conditions that must be satisfied if the Stormont Brake is to be pulled.
47. In relation to the legal question of whether the replacement EU act significantly differs (in whole or in part) from the content or scope of the EU instruments which it amends or replaces, the Committee noted the legal advice it commissioned on the act, and considered on 6 August 2026, which indicated that the replacement EU act significantly differs, in part, from the content and scope of the Regulations and Directive being replaced.
48. Having considered its commissioned legal advice, the Committee concluded that the replacement EU act significantly differs in part from the content or scope of the EU instruments which it amends or replaces.
49. In relation to the question of whether the replacement EU act would have a significant impact specific to everyday life of communities in Northern Ireland in a way that is liable to persist, the Committee considered the evidence received from DAERA, DfI and the UK Government.
50. In considering this evidence, the Committee took the view that for an act to have a significant impact specific to everyday life of communities in Northern Ireland in a way that is liable to persist, that significant impact must be negative.
51. Having considered the evidence received from DAERA, DfI, and the UK Government, the Committee concluded that the replacement EU act would not have a significant impact specific to everyday life of communities in Northern Ireland in a way that is liable to persist.

Next Steps

52. Having reached its conclusions, the Committee’s Inquiry report will be issued to all Members of the Legislative Assembly for further consideration.
53. The Committee’s Inquiry report will also be issued to the Committee for Agriculture, Environment and Rural Affairs and the Committee for Infrastructure.

Links to Appendices

Appendix A: Minutes of Proceedings

View Minutes of Proceedings from evidence sessions related to the report:

Minutes of Proceedings – 20 February 2025

Minutes of Proceedings – 10 April 2025

Minutes of Proceedings – 15 May 2025

Minutes of Proceedings – 26 June 2025

Minutes of Proceedings – 26 February 2026

Minutes of Proceedings – 6 August 2026

Minutes of Proceedings – 13 August 2026

Minutes of Proceedings – 20 August 2026

Minutes of Proceedings – 27 August 2026

Appendix B: Memoranda and Other Papers

View Memoranda and Other Papers considered by the Committee:

Consideration of the proposed EU act:

Assessment of impact from the Department of Agriculture, Environment and Rural Affairs on the proposed EU act – 7 April 2025

Assessment of impact from the Department for Infrastructure on the proposed EU act – 7 April 2025 

Written answers from the Department for Infrastructure on the proposed EU act – 13 May 2025 

Written answers from the Department of Agriculture, Environment and Rural Affairs on the proposed EU act – 14 May 2025

UK Government Explanatory Memorandum on the proposed EU act - 11 April 2024

Extract from the House of Commons European Scrutiny Committee Seventh Report of Session 2023-24

Correspondence published by the House of Lords European Affairs Sub-Committee on the Windsor Framework

Response from the UK Government – 29 May 2025

Update from the Department for Infrastructure on the provisionally agreed text – 10 March 2026

Assessment of impact from the Department of Agriculture, Environment and Rural Affairs on the provisionally agreed text – 26 May 2026

Consideration of the published EU act:

Assessment of impact from the Department of Agriculture, Environment and Rural Affairs on the published EU act - 4 August 2026

Assessment of impact from the Department for Infrastructure on the published EU act - 5 August 2026

UK Government Explanatory Memorandum on the published EU act - 4 August 2026

Response from the UK Government – 17 August 2026

Response from the Department of Agriculture, Environment and Rural Affairs - 10 August 2026

Response from the Department for Infrastructure - 11 August 2026

Further information from the Department of Agriculture, Environment and Rural Affairs – 17 August 2026

Further information from the Department of Agriculture, Environment and Rural Affairs – 24 August 2026

Appendix C: Minutes of Evidence

View Minutes of Evidence of Committee meetings related to the report:

Minutes of Evidence – 15 May 2025 (Department of Agriculture, Environment and Rural Affairs and Department for Infrastructure)

Minutes of Evidence – 6 August 2026 (Department of Agriculture, Environment and Rural Affairs and Department for Infrastructure)

Minutes of Evidence – 13 August 2026 (Department of Agriculture, Environment and Rural Affairs and Department for Infrastructure)

Appendix D: Consultation Responses

RaISe – Potential Witness List on the proposed EU act – 14 May 2025

RaISe – Potential Witness List on the published EU act – 30 July 2026

View responses to the Committee’s consultation on the proposed EU act:

Consultation Response from British Glass – 29 May 2025 

Consultation Response from the Office for Environmental Protection (nil return) – 3 June 2025

Consultation Response from the Electric Vehicle Association Northern Ireland (nil return) – 5 June 2025