Paper is recycable, and paper coffee cups are mostly paper. But if you try to compost one, you'll notice that it has a plastic coating that does not break down, even as the paper fibers inside biodegrade. This layer of plastic is difficult to remove in the recycling process, so most facilities are not equipped to handle it and do not accept paper coffee or other beverage cups.

Paper cups and plastic lids can be recycled at Full Circle Sustainability as part of the TerraCycle program.