Steph and I went to my favourite art and craft supplies shop, Fred Aldous in Manchester. And one of the things we bought was a set of coloured pencils made from recycled Chinese newspapers. The newspapers are so tightly wrapped around the coloured lead that it feels like a normal wooden pencil, and can be sharpened with a regular pencil sharpener. But you can read the text on the outside of the pencil (if you can read Chinese). The packaging seems to be made of Chinese newspapers too. Very groovy.
You can also buy them online for £2.99 from Giftmonger.com