Parchment can be composted or recycled with mixed food waste. It might not break down in your backyard compost pile, but many people are composting via the local sanitation department. Those large scale composting programs use a more advanced method to break down food waste. They can accept bio plastics, parchment paper, fats (animal or veg) and other things you wouldn’t compost in your garden.

And, as someone here mentioned, you can wash/rinse parchment paper.

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