There are several types of recycled insulation. The most popular recycled insulation in cellulose insulation. Cellulose is usually made from at least 75% receycled paper products. The paper is soaked in some sort of fire retardant like borates. Recylced blue jean insulation is also becoming poular.
Recycled Denim is a new green insulation option. It is usually made from post industry waste instead of post consumer waste but the scraps from jean factories are shredded and used as insulation. It is formaldehyde and VOC free and is 100% recycled.
Recycled shredded news print is also an option and is apparently pretty popular in the UK.
To add to the already great answers above, I have only seen recycled insulation made from denim and newspaper. Introducing straw bales to insulation seems to be the newest material to be consider.
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