I just found these great recycled newspaper colored pencils from The Container Store. What a great gift they'd make for your child, a birthday party, or as a stocking stuffer.
Yesterday's News Colored Pencils are rolled tightly to mimic the strength of wood and are substantial enough to sharpen in a traditional pencil sharpener...and to take any pressure you little one gives it. The set of 12 pencils comes in a cylindrical storage case, also made from reclaimed newspapers.
Available at containerstore.com for $4.99.