It doesn’t. You could throw paper in the green bin with the rest of the organic garbage. In fact, most jurisdictions recommend things like paper towels and food containers be put in the green bin. Since these are contaminated with grease and other food waste, they can’t be recycled, so they’re broken down for compost instead.
Other types of paper can be recycled though. It’s ground up into a pulp and used to make new paper. Typically lower grade products like newsprint and TP. Doing so requires less harvesting of raw materials. Ie trees.
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