The system (10) for collecting and disposing of contaminated waste products such as medical sharps and other medical wastes includes a housing (11) and its telescopic cover (9) which are fabricated of biodegradable and combustible material such as natural cellulose and non-natural cellulose. An absorbent biodegradable and combustible absorption package (30) or insert (35) can be placed in the bottom of the holding chamber (12) for absorbing any liquids emitted from the sharps and other wastes, and for enhancing the combustion of the medical sharps and other wastes when the housing is placed in a furnace. When the housing is burned it evolves no more than trace levels of sulfur or chlorine and yields substantially only biodegradable ash.