Climate impact assessment of current business models in the pilot sites: Deliverable D5.2

The EU Strategy for Sustainable and Circular Textiles aims to transform the textile sector into a more sustainable and circular economy by 2030, addressing environmental impacts and promoting responsible consumption. The CRAFT-IT4SD project (Craft Revitalization Action for Future-proofing the Transition to Innovative Technologies for Sustainable Development, 2024–2026) supports this strategy and the EU’s twin transition by harnessing the potential of Europe’s cultural and creative sectors (CCSI), particularly in fashion and clothing.

This project deliverable (D5.2) presents climate impact assessments of selected sufficiency-based business models in the fashion sector across four European pilot sites: Denmark, Finland, Romania, and Spain. Building on previous work in the project (report D5.1, Mapping and descriptions of current business models in selected pilot sites), Life Cycle Assessment (LCA) methods are applied to evaluate the greenhouse gas (GHG) reduction potential of sufficiency-based business models at product-level. The models analysed represent four micro and small enterprises in the pilot sites implementing models in textile reuse, clothing rental, tailor-made production, and pre-order systems. A literature review on take-back (second-hand) business models is also included.

The findings show that the assessed models can reduce emissions by 20–67% compared to conventional alternatives. The report also underscores the importance of extending product lifespans and reducing overproduction to meet the sector’s and the EU’s climate targets. While sufficiency-based models offer promising climate benefits, challenges remain in terms of data availability, scalability, and aligning value creation with reduced consumption.