The study examines the concept of decentralised composting of bio-waste as an alternative approach to current waste management practices, using the Łódź Agglomeration (Poland) as an exemplary case study. Consequently, the aim of the presented research is to compare and discuss the sustainability of the functioning bio- waste management system (status quo) against an alternative solution based on decentralised composting. Combined application of process-based life cycle assessment (LCA) and life cycle cost analysis (LCCA) was selected as the methodology to compare the sustainability framework for the waste management practices under analysis. The study has made it clear that decentralised composting of bio-waste offers broader environmental, economic and social benefits, albeit with the level of that benefit being very much correlated with the type of local government area (commune or in Polish