As a European Green Capital 2023, Tallinn has a unique momentum to set the foundations for its transition from a linear to a circular economy. The newly created Circular Economy Department in the city administration is a signal of this transformation. The city conceives the circular economy as a means to advance environmental goals while generating opportunities for job creation and stimulating innovation through a systems approach. This report summarises the findings from a 20-month policy dialogue between the OECD, the city of Tallinn and stakeholders from public, private and non-profit sectors. It provides the main components of existing circular economy initiatives promoted in Estonia and in the city of Tallinn, key challenges and policy recommendations to help the city develop its long-term vision on the circular economy, setting targets for the future.