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In a world that seeks to reduce the environmental impact of urban areas and implement the Circular Economy, governance is seen as a key to the ecological transition and the achievement of Sustainable Development Goals. How can we use data, knowledge, and resources at our disposal to put into practice a governance model that implements the Circular Economy of territories? This study devised this model. The comparative assessment of enablers and barriers presented in the literature review conducted allowed for the categorisation of indicators related to the literature sample, leading to the creation of a “Territory Circularity Index” composed of four thematic areas. The index was then incorporated into an innovative governance model intended to serve as a practical tool for local governments and policy makers. In the context of the Circular Economy and Sustainable Development, a “Flexible Governance Model” tailored to the territory could effectively contribute to the creation of coherent policies, an open and transparent process, and facilitated consultation with local stakeholders. The evaluation of the results indicates the potential of the “Flexible Governance Model for a Territory Circularity Index” in promoting effective mechanisms for implementing the circular economy, based on the dual quantitative and qualitative approach from which the model originated. The research could be particularly important for various stakeholders: researchers, policy makers, entrepreneurs, and governments.