The research aims to develop institutional tools for government support of environmental initiatives aimed at promoting environmentally oriented activities by entities in the Arctic zone of the Russian Federation, with the involvement of key stakeholders. The research methodology is based on classical research methods and the stakeholder approach in the system of public administration. The authors demonstrate the potential of applying new institutional tools for government regulation in implementing the circular economy concept at industrial sites in the Arctic zone of the Russian Federation. A key mechanism proposed is the establishment of a Fund for the Support of Environmental Initiatives, which would assess and create a pool of green projects, followed by their differentiated regulation based on the principles of the stakeholder approach. The functionality of this proposed institution will include a platform for expert project evaluation involving key stakeholders, financial support for entities engaging in environmentally oriented activities, information and analytical support for projects implementing circular technologies, and the promotion of these technologies at industrial sites in the Arctic zone of Russia. The significance of this research lies in its potential to offer organizational and managerial recommendations that can be adopted by government authorities at various levels to guide the environmentally sustainable development of Russia’s Arctic zone, using proactive approaches to stakeholder engagement.