In this work, the environmental impacts caused by an innovative upcycling process of printed plastic scrap have been assessed through Life Cycle Analysis (LCA) methodology for the first time. The process consists of removing the inks from the plastic surface before extrusion, so that clear high quality pellets are obtained, suitable to be used in high added value applications (such as packaging). The upcycling technology is compared with two traditional waste treatments: conventional recycling (or downcycling) and incineration with energy recovery. Upcycling is considered to be better aligned with Circular Economy principles and its implementation in the industry requires a comprehensive analysis of environmental impacts. Despite the importance of this topic, only a few studies can be found in the literature. Furthermore, the lack of uniformity and consensus in LCA modelling can lead to the conclusion that upcycling causes the biggest environmental burdens. Therefore, downcycling or incineration are shown as preferable options, regardless of the irreversible loss of the plastics' potential to be recirculated. To avoid this error, we have emphasised the importance of including the market share for recycled products in the LCA modelling and establishing the virgin plastic substitution ratio correctly. Also, we have suggested that in the perspective of the Circular Economy, the energy produced during incineration cannot substitute the energy from fossil fuels. (c) 2020 Elsevier Ltd. All rights reserved.