The paper addresses environmental impact of using pallets and compares the performance of plastic and wooden pallets regarding to carbon footprint and waste, they produce. Common wisdom has it, that wooden pallets are environmentally friendly. Plastic pallets, due to the material they are being made of, are regarded to be a potential source of pollution in land, air, and water. We have gathered, evaluated, extracted and/or calculated data showing how much CO2, and solid waste is generated due to specific wooden and plastic pallet operations. The Life Cycle Assessment method has been used, with primary data extracted from our own studies and experience or taken from reputable sources we quote in our work.