Investigating the environmental sustainability of any recycling process demands full understanding and objective quantification of all the associated environmental impacts. Life cycle assessment is an internationally standardized method that is able to account for upstream and downstream inputs and emissions over the complete supply chain providing a product or service. It is generally considered the best environmental management tool that can be used to move from a generic statement about the environmental benefit of a given recycling or disposal system to reach an objective quantification of its environmental sustainability. In this study, it is used to assess and compare the environmental performances of three alternative options (landfilling, recycling, and combustion with energy recovery) that could be used in Italy to manage paper and board packaging waste. The results confirm that material recycling may not be the best environmental option. In this specific case, they show that paper use should be viewed in the context of the international trade in biofuels.