The nitrogen and sulphur oxide (NO_x and SO₂) emissions are causing a serious threat to the existence of life on earth, requiring their effective removal for a sustainable future. Among various approaches, catalytic or electrochemical reduction of air pollutants (NO_x) has gained much attention due to its high efficiency and the possibility of converting these gases into valuable products. However, the required catalysts are generally synthesized from lab-grade chemicals, which may not be a sustainable approach. Herein, a sustainable approach is presented to synthesize an efficient iron-based catalyst directly from industrial/lake wastewater (WW) for NO_x-reduction. According to the theoretical calculations and experimental results, Fe-ions could be readily recovered from wastewater because it has the best adsorption efficiency among all other co-existing metals (Ni²⁺, Cd²⁺, Co²⁺, Cu²⁺, and Cr⁶⁺). The subsequent experimental investigations confirmed the preferential Fe adsorption from different WW streams to develop Fe₃O₄@EDTA-Fe composite, whereby Fe₃O₄ could be used due to its high recycling ability, and ethylenediaminetetraacetic acid (EDTA) acted as a chelating agent to adsorb Fe-metal from effluents. The Fe₃O₄@EDTA-Fe exhibited high efficiency (≥87%) for NO_x reduction even in the presence of high-degree oxygen contents (10–12%). Moreover, Fe₃O₄-EDTA-Fe showed excellent long-term stability for 24 h and maintained more than 80% NO_x reduction. The fabricated catalyst has a great potential for executing a dual role simultaneously for Fe-recovery and NO_x removal, promoting the circular economy concept and providing a potentially sustainable remediation approach for large-scale applications.