This lecture discusses the critical role of recycling in sustainable development, emphasizing its limitations and potential. It begins with an overview of demographic impacts on resource consumption, referencing the equation of Paul Ehrlich that links population, affluence, and technology to environmental impact. The instructor highlights the current global population growth rate and its implications for resource use. The discussion then shifts to the concept of the circular economy, detailing its principles and the necessity of reducing raw material extraction and waste. The lecture presents various schools of thought within the circular economy, including Cradle to Cradle and Performance Economy, and their approaches to sustainability. The instructor also addresses the rebound effect, illustrating how increased efficiency can lead to greater overall consumption. Finally, the lecture concludes with a focus on the energy and material flows in the economy, stressing the importance of understanding these dynamics for effective recycling and resource management.