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Gifts that are earth-friendly

Bicycles. A healthy gift that requires only human energy to operate and gets people outdoors.
Books. These gifts provide a lifetime of use with minimal damage to the environment if printed on recycled paper. Books seldom end up in landfills.
Homemade crafts and food. Practical gifts that demonstrate genuine holiday spirit.
Reusable grocery bags. Cloth bags cut down on the use of paper and plastic and raise environmental awareness at the same time.
Plants. Oxygen producing, carbon dioxide consuming, peace radiating, natural wonders.
Hemp products. One of the strongest fibers on earth, hemp has great durability. Hemp can produce more than twice as much fiber as cotton from the same amount of land. Unlike cotton, hemp requires no chemical pesticides or herbicides to grow efficiently. Hemp products include paper, oil, hemp meal, rugged clothing, backpacks, surfboard bags and hats - products as strong as rope and as fine as lace.
Organically grown or recycled cotton products. Like organically grown food, organic cotton growers use natural predators such as ladybugs and other beneficial insects instead of chemicals to control pests. Free of harmful finishes, bleaches and dyes, organic cotton also has a unique and softer feel. Recycled cotton is made by an innovative new process that spins post-consumer and post-commercial waste fiber into new yarn. The process involves only hydrogen peroxide, phosphate-free soaps, and tapioca starch.
Recycled utilitarian gifts. Many stores and catalogs offer a variety of recycled, environmentally responsible gifts. A random sampling includes: pencils made out of 100 percent recycled newspapers; "reclaimed" silverware wind chimes; recycled paper clips; trash cans made out of recycled paper.
Socially responsible gifts. Many nonprofit programs like Self Help Crafts facilitate the sale of Third World handmade gifts. These programs help market quality products while improving the lives of poor developing world citizens.

Other ideas:

Buy reused

Shopping at thrift stores and second-hand shops is admittedly unconventional and should probably only be considered for friends and family members who value the earth-friendly nature of these gifts! However, it is one of the most earth-friendly ways to give gifts. Wrap them in Sunday comics and attach thoughtful home-made gift tags. 

Buy things your recipient would buy anyway

For example, 

renewing a subscription to a magazine they always buy
their favorite cookies or bakery item

Time

For example, 

a coupon for free babysitting for a young family that finds it hard to afford sitters for a much-needed night out
for elderly people, a night of companionship and a bring-it-along meal

From "Celebrating with the Earth"

 

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