Holiday wrapping = crazy amounts of waste. The best alternatives are "wrapping" in reusable containers, bags and boxes (each of those serving as a second gift). And then there's sustainable paper. Hemp wrap by Paporganics offers a holiday line including paper, tags, and ribbon:
Paporganics hemp wrap is made with 10% hemp/flax blend, 90% recycled post-consumer fiber and is processed chlorine-free with vegetable-based ink. Not so cheap, at $4.99 (for two 24" x 36" sheets), but if buying less stuff is on your holiday green list, then maybe you can splurge a bit on the wrap.