Design, in its broadest sense, plays a pivotal role in achieving climate-neutral environments, with cities serving as key arenas for a green and resilient transition. The circular economy presents innovative pathways for creative design sectors, which are not only essential for this transition but also crucial for fostering the cultural change and social inclusion necessary for sustainable development. Through a multidisciplinary approach that views cities as ecosystems, the Innovation Alliance Circular Design (CiD) addresses the educational gaps in skills and knowledge among product and service designers, as well as architects and urban planners. The Alliance offers innovative models that connect design to circularity and urban transformation. CiD fosters innovation in circular design education by promoting entrepreneurship within academia. It provides educational programmes aimed at upskilling individuals for emerging labor market profiles and supports the establishment of green start-ups. This paper outlines the process of identifying skill gaps in circular product design education, with the ultimate goal of advancing climate-neutral cities. It activates a dialogue and brings together relevant stakeholders from academia and vocational education and training (VET), as well as the broader socio-economic environment—including research and technology organizations (RTOs), municipalities, civil society, and businesses. This collaborative effort aims to create an innovation ecosystem for the co-creation of knowledge and to accelerate the transfer of research and innovation into educational practices.