The study measures the potential environmental impact of the entire life cycle of euro banknotes. It covers all stages from the procurement of raw materials, to the production, distribution and circulation of banknotes up to their removal from circulation and destruction by the central banks of euro area countries. It is based on the methodology for assessing the environmental footprint of a product developed by the European Commission and builds on the work started in 2004 with the life cycle assessment of the first series of euro banknotes.
The main factors influencing the size of the environmental footprint of euro banknotes as a means of payment are the energy consumption of ATMs and the transport of the banknotes, followed by the processing in national central banks, the production of banknote paper and the control of the authenticity of the banknotes in the shops. The long life cycle of banknotes and the fact that they are actively used as a means of payment means that the impact of the production of banknotes is less than that of their transport and distribution process.
“The Eurosystem is committed to making euro banknotes as environmentally friendly as possible, while ensuring that cash remains widely available and accepted as a means of payment,” said Piero Cipollone, member of the ECB’s executive board.
Since 2004, the Eurosystem has worked to reduce the environmental footprint of euro banknotes, for example by using only 100% sustainable cotton in production and by banning the disposal of banknote waste in landfill.
ATM manufacturers and banks have also made great strides in reducing the environmental impact of their equipment. A study released today shows that improving the energy efficiency of ATMs helped reduce their environmental footprint by 35% between 2004 and 2019.
Extensive research and development is underway to make future euro banknotes even more environmentally friendly at all stages of their use cycle. For example, the ECB is evaluating alternative ways to dispose of banknote waste, including recycling and reusing waste materials. Opportunities to make improvements to the materials and components used in the printing process are also explored.
These measures are also part of the ECB’s broader commitment to combat climate change within its mandate and to reduce its environmental footprint in line with the Paris Climate Agreement and the European Union’s climate neutrality objectives. Detailed information can be found in the ECB’s annual environmental report.
2023-12-13 20:05:00
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