Meeting the Paris Agreement target to reduce global warming to 1.5°C and achieving global net-zero emissions in 2050 requires unprecedented transformations. At the same time, the COVID-19 pandemic and Russia’s war of aggression against Ukraine have increased attention on the need for resilience to face shocks such as the cost of living, food and energy crises. They raised the need for policies to support more sustainable production and consumption patterns, whilst also driving inclusion.

The world is facing unprecedented challenges. In addition to the green and digital transitions, the COVID-19 pandemic and Russia’s war of aggression against Ukraine have created new challenges, including cost of living, food and energy crises.

In a circular economy, waste and pollution are designed out, products and materials are kept in use as long as possible, and natural systems are regenerated. The city of Tallinn conceives the circular economy as a means to advance environmental goals while generating opportunities for job creation and stimulating innovation through a systems approach. As a recipient of the European Green Capital award in 2023, the city aims to reach carbon neutrality by 2050, as set out in the Tallinn 2035 city strategy and reported in the “Tallinn Sustainable Energy and Climate Action Plan 2030”. Efficient resources management is particularly relevant in a city like Tallinn where the population is: growing, increasing the demand for services, housing and infrastructure, not least because it houses, relative to its population, one of the highest shares of Ukrainian refugees within OECD countries; ageing, potentially bringing changes in energy consumption due to the greater use of energy such as electricity, heat and gas; and changing its structure towards increased single-person households, implying a drop in material efficiency and higher per capita levels of waste generation.

This chapter provides an overview of the rationale for the circular economy transition in the city of Tallinn, Estonia, by looking at the main socio-economic and environmental data and trends that have an impact on resource management, including population growth. The circular economy can play a key role in the building and maintenance of infrastructure and housing, as well as in shifting towards sustainable production and consumption patterns while lowering greenhouse gas (GHG) emissions in key sectors such as buildings, transport and energy. The city of Tallinn conceives the circular economy as a means to contribute to environmental goals while creating opportunities for jobs and stimulating innovation through a systems approach. The city aims to reach carbon neutrality by 2050, as set by the Tallinn 2035 Development Strategy and reported in the Tallinn Sustainable Energy and Climate Action Plan 2030.

This chapter details and analyses the main components of existing circular economy initiatives promoted in Estonia and the city of Tallinn. At the national level, the first step towards a circular economy in Estonia is reflected in the Circular Economy White Paper published in 2022. At the local level, the city of Tallinn transformed its Waste Management Department into a Circular Economy Department, with the intention of co‑ordinating action towards the implementation of a future circular economy strategy for the city.

This chapter identifies the main challenges that Tallinn faces in the transition from a linear to a circular economy and suggests policy recommendations to overcome them. These recommendations specify how Tallinn can act as promoter, facilitator and enabler of the circular economy, building on the OECD Checklist for Action on the Circular Economy in Cities and Regions.