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This lecture explores the concept of circular economy, focusing on the limits of recycling for climate change mitigation. It discusses the second law of thermodynamics, the role of recycling in a world with finite resources, and the implications for economic growth. The presentation delves into the challenges of achieving total recycling and the need for a large stockpile of inactive materials for a stable recycling system. It also examines the exponential growth of steel production and the potential exhaustion of iron ore resources. The lecture concludes by emphasizing the importance of sustainable development and the necessity of rethinking current production and consumption patterns.