The European Central Bank (ECB) on December 11, 2023, published an environmental footprint study of euro banknotes as a payment instrument. It shows that the average environmental footprint for payments with banknotes was 101 micro points (µPt) per euro area citizen in 2019. This is equivalent to driving a car for 8 km, or 0.01 percent of the total environmental impact of a European citizen’s annual consumption activities.
The study measures the potential environmental impact of all activities in a full cycle of euro banknotes – from raw material acquisition, manufacturing, distribution and circulation, to disposal by euro area national central banks (NCBs). It is based on the European Commission’s Product Environmental Footprint methodology and builds on the work begun in the life cycle assessment of the first series of euro banknotes in 2004.
The main factors contributing to the environmental footprint of euro banknotes as a means of payment are the energy consumption of automated teller machines (ATMs) and transportation, followed by processing by NCBs, paper manufacturing and the authentication of banknotes in shops. The long lifespan of banknotes and the fact that they are used for many payments means that the impact of banknote production is lower than that of transportation and distribution.
Since 2004 the Eurosystem has made efforts to reduce the environmental footprint of euro banknotes, for example by using only 100 percent sustainable cotton and banning the disposal of banknote waste in landfill. In addition, ATM manufacturers and banks have made progress in reducing the environmental impact of their machines. The study, published on December 11, 2023, shows that improvements in the energy efficiency of ATMs contributed to a 35 percent decrease in their environmental footprint between 2004 and 2019.
Extensive research and development is being conducted to make future euro banknotes even more environmentally friendly at all stages of their life cycle. For instance, the ECB is exploring alternative waste disposal methods for banknotes, such as recycling and the reusing of waste material, and possible improvements to material and components used in the printing process. These actions are also part of the ECB’s broader commitment to tackling climate change within its mandate and to reducing its own environmental footprint in line with the objectives of the Paris Agreement and the European Union’s climate neutrality objectives. Detailed information is available in the ECB’s yearly Environmental Statement. http://tinyurl.com/474kkz7s
Source: IBP