Preface
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.
Across the globe, cities, where most people live and work, have taken significant actions to enhance people’s well-being and economic growth, in a way that is compatible with environmental protection goals. Along with the energy transition, efficient material and resources management in cities is increasingly becoming a priority, since material mis-management is responsible for two thirds of global greenhouse gas emissions (GHG).
The circular economy provides a means to build a more sustainable, carbon-neutral and resilient society. Adopting circular economy approaches to steel, plastics, aluminium, cement and food production could help cut global GHG by 9.3 billion tonnes by 2050. Cities have an important role to play in this transition, as they account for over 70% of annual GHG emissions.
As European Green Capital for 2023, Tallinn has a unique opportunity to reinforce the foundations of its transition from a linear to a circular economy, investing in efforts to slow, narrow and close material loops in key economic sectors, including the built environment, food and tourism. Such a transition will not only enable environmentally positive impacts, but also boost innovation, create jobs and retain talents. The newly created Circular Economy Department in the city administration is a signal of this transformation.
Building on the findings of a 20-month policy dialogue between the OECD and the city of Tallinn and 60 stakeholders from public, private and non-profit sectors, this report identifies key challenges and provides policy recommendations to help the city further develop its circular economy strategy, including through setting targets for the future. In particular, it calls for: a systems approach to overcome silos across policy areas; a meaningful stakeholder engagement to create a circular economy ecosystem where businesses, universities and residents can interact; and a modern approach to data collection and service provision by leveraging on Estonian championship on the digital economy.
The OECD Centre for Entrepreneurship, SMEs, Regions and Cities and the city of Tallinn stand ready to work further together to support the implementation of the policy recommendations of this report.
Director, OECD Centre for Entrepreneurship, SMEs, Regions and Cities, OECD
