Cellulose insulation is considered one of the most environmentally friendly types of insulation available. It takes less energy to make than other materials.
It is also made mostly of recycled paper (mostly newspaper), which typically comes from community recycling programs. Otherwise, this paper might end up in landfills and release greenhouse gases as it is decomposed. If you used the paper put into landfills each year to make cellulose insulation, it would save about eight million tons of CO2 emissions.