More than ever, paper is expected to be recycled this year, due to new mandatory recycling laws in municipalities across the nation.
(A) More than ever, paper is expected to be recycled this year (incorrect: redundancy)
paper is expected is an incorrect expression. It should be the amount as only paper cannot be recycled, it will be the amount of paper that can be recycled.
(B) It is expected that more paper than ever will be recycled this year than previously and that is (incorrect: redundancy)
The option is an exaggeration of option A and conveying the same meaning. Paper is expected to be recycled. If it is more than ever, it should be an amount of paper.
(C) The paper expected to be recycled this year is more than ever (incorrect: redundancy)
Options A, B, and C all have the same errors
(D) The amount of paper that will be recycled this year is expected to be greater than ever (the best option)
It is conveying the message that we were hunting in options A, B, and C
(E) A great increase in the amount of paper that will be recycled this year is (incorrect: incomplete)
The sentence should not be ended with a verb. If it ends with a verb, it needs a predicate that is missing and hence incorrect.