#France #circular economy #Brussels #PACCT #Economic Models

PACCT for Sustainability: A Call for Regulatory Change in Europe

On June 17, 2025, during the EU Green Week in Brussels, the international community known as PACCT for Sustainability unveiled its 2025 Policy Brief. This initiative is part of ongoing discussions surrounding the upcoming Circular Economy Act of 2026—an ambitious European legislative measure aimed at embedding circular economy principles as a centerpiece of the EU's environmental strategy.

The PACCT's Policy Brief, compiled with inputs from various stakeholders including businesses, public institutions, and researchers, articulates a series of actionable recommendations. The goal is to ensure that usage-oriented economic models are thoroughly integrated into the forthcoming legislation.

In a hybrid event that connected public officials, economic actors, and scientists, PACCT initiated conversations about a vital question: How can public policies evolve to accommodate new business models that harmonize economic performance with environmental sustainability?

As the European economy's circularity rate stagnates at a mere 12%—a figure unchanged in the last 15 years—PACCT stands firm on the belief that only innovative economic models can help achieve the EU's target of 24% set in the Clean Industrial Deal by 2030. Usage-oriented models, where companies commit to delivering outcomes rather than simply selling products, are posited as a systemic response to today's decarbonization and competitiveness challenges.

The Policy Brief from PACCT identifies four key priorities:

1. Redefining Product as a Service (PaaS): The focus should be on the environmental outcomes achieved—such as carbon footprint reduction and product longevity.
2. Accessibility for Public Funding: Making sure that these innovative models are eligible for public financing and green public procurement.
3. Enhanced Technical Support: By transposing successful French practices, like those of ADEME, to a European level, companies can receive better guidance.
4. Removing Systemic Barriers: This includes updating accounting standards to reflect the actual lifespan of circular assets, developing tools to measure impact accurately for usage-oriented models, and considering tax incentives with a focus on integrating PaaS into discussions on green VAT.

Established in 2024, PACCT—Product as a Service to Accelerate Cooperation and Circular Transformation—now boasts nearly 800 members across 20 countries. The Brussels presentation signifies a pivotal step forward in creating a supportive European framework for these usage-oriented models.

In summary, PACCT's engagement at the EU Green Week serves not just as an announcement but as a clarion call to reshape the regulatory landscape. The path ahead is clear: innovative economic models are essential for achieving sustainability goals and fostering economic resilience in Europe. Through collaboration, regulatory reform, and continued advocacy, PACCT aspires to lead the charge towards a more sustainable and competitive future.