Business model innovation to accelerate circularity in Europe

PACCT’s purpose is to accelerate circularity by promoting innovative business models, particularly Product-as-a-Service (PaaS). PaaS shifts the focus from selling products to delivering services, enhancing customer satisfaction while reducing environmental impact. For instance, instead of selling truck tyres, Michelin offers a mileage-based service, which includes the product and maintenance. This model encourages tyre reuse, resulting in 3-4 times more retreaded tyres and saving 26,000 tonnes of raw materials annually.

These models, which provide both business and environmental benefits, are essential for Europe to achieve its Green Deal objectives. They align closely with the EU’s 2025 Competitiveness Compass, particularly with one of its three transformational imperatives: 'A joint roadmap for decarbonisation and competitiveness.' Europe has set an ambitious framework to become a decarbonised economy by 2050, and these models are a key way to achieve this goal.

However, implementing these models presents challenges that businesses must overcome: operational implementation, cultural transformation, and financing. This is why PACCT was established in early 2024 to support companies, public institutions, financial organisations, and research institutes in addressing these challenges.

In 2024, PACCT published the first European white paper on PaaS for sustainable impact and organised key webinars on the topic. Today, our community has over 600 members across 20 countries, and it continues to grow.

In 2025, we aim to tackle the regulatory barriers that can restrain companies from adopting such models. That is why PACCT, as part of the EU Green Week, will organise an interactive session for decision-makers on 17 June 2025, in Brussels. During this session, we will propose key regulatory initiatives that will boost the adoption of circular ‘as-a-service’ models in Europe. These proposals are grounded in real-life use cases, the work carried out by the community in 2024, insights from our Scientific Advisory Board (SAB), and contributions from the various companies we collaborate with.

PACCT is funded by ADEME, Michelin, BASF, and Johnston Circular. Our work is supported by an independent scientific committee, composed of representatives from: Base Foundation (Switzerland), INP Grenoble (France), Aston Business School (UK), Circle Economy Foundation (Netherlands), Tampere University (Finland), and RISE Institute (Sweden).