The recycling of pulp and paper is said to be a key solution of mitigating environmental impact, carbon emissions and promoting sustainability. The chapter makes a review of studies conducted on aspect of recycling of paper which is said to decrease the cutting of trees and deforestation and increase ecological aspects. It has been observed in the previous studies that environment load decreases on the utilization of recycled paper. However, some studies also pointed that recycling of paper could also increase green house gas emissions if fossil fuels are used in place of renewable energy. The high energy demands of the recycling process, varied grade of recycled grades of paper and dependency on virgin raw material for specific grades of paper make the limited utilization of recyled fibre. Moreover, the energy intensive recycling process sometimes increase the carbon footprint. The recycling of pulp and paper remains a topic of study for circular economy in the pulp and paper industry. The actual climatic benefits of global recycling of pulp and paper remains limited. The holistic approach of utilization of renewable energy, improved forest policies along with recycling of paper can be an option to radically reduce the green house gas emissions in the pulp and paper sector.