According to a study conducted by European financial authorities, the annual environmental impact of an individual’s usage of euro banknotes equates to driving approximately 8 kilometers, which represents merely 0.01% of a person’s overall carbon footprint.
This comprehensive analysis assesses the environmental implications throughout the complete lifecycle of euro banknotes, encompassing the stages of raw material sourcing, production, distribution, circulation, and final disposal by the national central banks (NCBs) within the euro area.
Key contributors to the ecological footprint associated with euro banknotes include the energy consumption of automated teller machines (ATMs) and transportation, followed by the processing activities carried out by NCBs, the manufacturing of paper, and the authentication processes in retail settings.
Piero Cipollone, a board member of the European Central Bank, stated, “The Eurosystem is dedicated to making euro banknotes as environmentally sustainable as possible while ensuring their broad availability and acceptance.”
Since 2004, the Eurosystem has undertaken initiatives to minimize the ecological impact of euro banknotes. These efforts include the exclusive use of 100% sustainable cotton and the prohibition of disposing of banknote waste in landfills.
Moreover, advancements in ATM technology and operations have significantly mitigated their environmental effects. The findings indicate that improvements in energy efficiency for ATMs resulted in a remarkable 35% reduction in their environmental footprint from 2004 to 2019.