ETC CE Report 2025/1 Potential environmental gains from service models

14 Jan 2025

Kia Rose Egebæk, Caroline Tranberg Mortensen, Emanuelle Di Francesco, Adrien Specker, Anna-Maria Blixt, Sandra Moberg

This report explores the environmental impacts, challenges, and growth potential of Product-Service Systems (PSS) in Europe, focusing on five product categories: 1) children’s products, 2) textiles, 3) home appliances, 4) information and communications technology (ICT), and 5) furniture. Based on desk research and interviews with 13 PSS cases, the study highlights the potential of PSS to extend product lifespans, enhance usage efficiency, and optimise the post-use phase, though approaches vary by product group. Key challenges for PSS adoption include legal and financial barriers, maintenance needs, partnership dynamics, and consumer behaviour. Environmental monitoring and reporting are essential for assessing impacts and aligning with Europe’s sustainability goals.

Europe is well-positioned for PSS growth, driven by circular economy policies and rising eco-consciousness. For scalability, PSS models must deliver convenience, competitive pricing, and consumer value beyond sustainability. Raising market awareness through targeted marketing and education is also crucial. The future of PSS depends on consumer adoption, regulatory support, economic conditions, and innovation. While success will vary by sector and region, PSS has the potential to drive Europe’s transition to a circular economy and more sustainable consumption patterns.