The climate crisis and its challenges require drastic changes in our way of life and economy. The Autonomous Province of Bolzano has therefore commissioned EURAC to develop a state strategy for the circular economy, which is based on the Climate Plan 2040 to achieve climate neutrality for the Autonomous Province of Bolzano. The aim of the strategy is to create guidelines for the Autonomous Province of Bolzano with measures based on the principles of the circular economy. These should serve to collect and document the material flows in the construction industry, agriculture, and forestry. The strategy will propose an indicator-based monitoring system to document circularity. The proposed measures incorporate standards and best practices from the European, Italian and South Tyrolean levels. With reference to the state-of-the-art, these will be based on the Cradle-to-Cradle and Life-Cycle-Assessment approach. Furthermore, a participatory process is proposed to identify the factors that promote or constrain the circular economy. All decision-makers and institutions in the key sectors involved are involved. This is done through workshops and by developing a list of priority issues. Finally, in order to raise the central importance of the circular economy, a communication plan to support awareness raising in the Autonomous Province of Bolzano is being drawn up.