In an era defined by the urgent need for environmental sustainability and industrial innovation, the European manufacturing sector is at a pivotal point. Traditional linear production and consumption models are giving way to circular strategies that prioritize longevity, reusability, and reduced environmental impact. At the core of this transformation lies the concept of the Product-Service System (PSS) — a powerful approach that integrates products with services to enhance value while reducing waste. Now, with the emergence of the PSS-Pass project, the European Union may be witnessing the birth of a transformative tool capable of reshaping its manufacturing policy landscape.
From Product to System: The Evolution of Circular Thinking
The PSS model is more than a sustainability trend — it’s a systemic shift. By offering services alongside physical products (such as maintenance, upgrades, or take-back schemes), companies extend product lifecycles, minimize resource extraction, and open new business opportunities. However, to reach its full circular potential, PSS must become more intelligent, transparent, and interoperable.
This is where PSS-Pass and its central innovation — the Digital Product-Service System Passport (DPSSP) — enter the stage.
What Is the DPSSP?
The DPSSP builds on the foundation of the Digital Product Passport (DPP), a concept currently gaining traction in EU policy circles as a means to support the Circular Economy Action Plan. But the DPSSP goes further. It captures not only the physical properties and history of a product but also the full lifecycle of the associated services — offering a comprehensive digital trace of usage, performance, maintenance, refurbishment, and eventual disposal or reuse.
This dynamic, shareable data structure becomes a living repository of information — constantly updated, interoperable across systems, and enriched through real-world usage data collected via IoT, Digital Twins (DTs), and Machine Learning (ML) tools.
Informing Circularity Through Smart Data
PSS-Pass proposes that Life Cycle Assessment (LCA) — a cornerstone of environmental impact analysis — can be drastically improved through continuous data inputs and AI-powered insights. This would enable:
- Real-time decision-making on circular strategies during the product’s use phase.
- Predictive environmental modeling through digital twin simulations.
- Automated reporting to regulatory bodies and stakeholders.
- Sector-wide benchmarking to support cross-industry learning.
Such capabilities align directly with EU ambitions for data-driven green transition and provide a scalable model for climate-responsible manufacturing.
Policy Implications and Opportunities
As the EU sharpens its focus on sustainable industrial practices, the tools it chooses to support and regulate these transitions become critical. The DPSSP has the potential to be formally embedded into EU regulations, serving as a cornerstone for future:
- Eco-design standards, extending beyond physical product attributes to include service and usage data.
- Circularity-by-design policies, with dynamic feedback loops throughout product-service lifecycles.
- Digital infrastructure mandates, promoting interoperable data sharing across borders and industries.
- Incentive frameworks, rewarding companies that demonstrate circular excellence through verified digital reporting.
Moreover, the interdisciplinary architecture proposed by PSS-Pass — combining ontologies, ML models, and digital environments — could serve as a blueprint for other sectors embracing the green digital transition.
Pilot Projects as a Testbed for Policy
The three PSS-Pass pilots — spanning home appliances, complex equipment, and textiles — offer valuable diversity. They allow policymakers to observe how the DPSSP framework functions in different real-world contexts, with varying product complexity, user engagement levels, and end-of-life pathways. This empirical evidence could directly inform sector-specific directives and funding programs under initiatives like Horizon Europe and the European Green Deal.
Conclusion: A Circular Future Built on Data
If the EU is to achieve its climate targets while maintaining industrial competitiveness, it must foster holistic, intelligent systems that empower manufacturers, service providers, and consumers alike. PSS-Pass, with its innovative approach to integrating digital tools, circularity principles, and lifecycle thinking, has the potential to become a key enabler of this transformation.
By embedding the DPSSP into its regulatory and innovation agenda, the EU can not only lead in sustainable manufacturing but also set a global standard for how circularity is tracked, managed, and scaled in the 21st century.
Author: Styliani Stavroulaki – Circular Economy Foundation
Photo from INVENTO IFD (CC BY-NC 4.0). No changes were made to the image.