Improper waste disposal may release toxins, including methane gas, to the environment, potentially contributing to the greenhouse effect. In accordance with the 2030 vision of the Kingdom of Saudi Arabia to produce a sustainable, healthy environment, we designed and implemented a prototype smart recycling bin that effectively classifies and sorts recyclable materials deposited by consumers and provides real-time monitoring of the bin for adverse conditions. Additionally, a reward system is incorporated to incentivize consumers to engage in recycling programs. The Smart Classification Recycling Bin (SCRB) thus improves the safety and efficiency of the recycling process, reduces the burden of decision-making and sorting by humans, and promotes recycling among the population. This innovative system uses Artificial Intelligence (AI) integrated with camera vision to classify the materials based on composition (plastic, paper, metal, or electronic waste). Sensors are installed in the SCRB to detect gas concentrations, temperature, and storage materials approaching bin capacity. An Internet of Things (IoT) interface provides administrators with real-time monitoring and alarm notification of SCRB conditions, and it executes consumer rewards transactions. While the prototype SCRB shows promising accuracy rates, up to 89% in sorting recyclable materials, there exist numerous possibilities for enhanced performance of future designs.