Swedish recycling businesses argue that the Non-Toxic Environmental target gets too much weight and that resource efficiency gets too little focus, which results in decreased recycling. The purpose of this paper is to highlight different factors that recycling of waste decisions should consider, as well as contributing to a constructive discussion of the overall principles and policies for recycling. How recycling works in practice is explored based on nine interviews with stakeholders from the governmental agency level to recycling businesses. Theory with regards to ethics, risk, decision-making, governmental policy and laws is summarised. Finally, the discrepancy and connection between practice and theory is analysed. If recycling of waste is seen as a decision problem, the choice is between to recycle (in different ways) or not to recycle (i.e., energy recovery and/or landfill). Based on risk and decision theory, all relevant goals should be considered. This requires a broader problem framing when goals are in conflict. All parties agree that recycled and virgin material should be treated equally. From a higher policy perspective, it should then be demonstrated that any use of material (recycled and/or virgin) minimize environmental impact and promotes long-term sustainability. © 2020 by the authors.