This study exemplifies the use of Life Cycle Assessment (LCA) as a tool to quantify the environmental impacts of processes for wastewater treatment. In a case study, the sludge treatment line of a large wastewater treatment plant (WWTP) is analysed in terms of cumulative energy demand and the emission of greenhouse gases (carbon footprint). Sludge treatment consists of anaerobic digestion, dewatering, drying, and disposal of stabilized sludge in mono- or co-incineration in power plants or cement kilns. All relevant forms of energy demand (electricity, heat, chemicals, fossil fuels, transport) and greenhouse gas emissions (fossil CO2, CH4, N2O) are accounted in the assessment, including the treatment of return liquor from dewatering in the WWTP. Results show that the existing process is positive in energy balance (–162 MJ/PECOD * a) and carbon footprint (–11.6 kg CO2-eq/PECOD * a) by supplying secondary products such as electricity from biogas production or mono-incineration and substituting fossil fuels in co-incineration. However, disposal routes for stabilized sludge differ considerably in their energy and greenhouse gas profiles. In total, LCA proves to be a suitable tool to support future investment decisions with information of environmental relevance on the impact of wastewater treatment, but also urban water systems in general.