Island territories face structural challenges related to waste management, limited land availability, and dependence on imported energy. End of life wood pallets represent a significant yet underutilized lignocellulosic resource in these contexts, particularly due to the high intensity of import export logistics and constrained recycling infrastructure. This study explores alternative valorisation pathways for wooden pallets in island environments, using La Réunion as a representative case. Mechanical recycling, direct combustion, and slow pyrolysis for biochar production are comparatively assessed through a mass and energy balance perspective. An order of magnitude literature based evaluation of Global Warming Potential and useful energy recovery is applied to support decision making in geographically constrained systems. The proposed framework contributes to the development of decentralized circular economy strategies and establishes the basis for subsequent full life cycle assessment using primary operational data.