Polymer banknotes were pioneered with one thing in mind: security. However, in the 35 years since it appeared the sustainability of polymer substrate has become increasingly recognised too.
It’s now a matter of public record that polymer substrate can help central banks minimise production inputs, emissions and waste – with decades of real-world, published data available to central banks.
Banco de México, the Bank of Canada, and the Bank of England have all published exhaustive lifecycle analyses that demonstrate GUARDIAN™ substrate is more sustainable than its cotton counterparts. Every year, these data are confirmed by more central banks.
Amidst a global push to be more sustainable, these green credentials have become a key driver behind the adoption of GUARDIAN substrate – which is now used by over 40 central banks.
Breaking the benefits down into stages across the banknote lifecycle can help currency departments understand why.
Polymer banknotes are stronger. They last three to five times longer in the cash cycle. And this durability is the primary reason GUARDIAN banknotes are more sustainable than cotton alternatives.
As CCL Secure’s Technical Services Manager, Lachlan McDonald, explains: “If your banknotes last five times longer, it means you need to order five times less banknotes, reducing raw material use over time.”
This durability data is backed by central banks across a wide range of climates and cash cycles where worldwide. For example:
- New Zealand and Papua New Guinea report GUARDIAN lasts 4.8 times longer in circulation
- Mozambique reports GUARDIAN lasts 4 times longer in circulation
- Australia reports GUARDIAN lasts 3.8 times longer in circulation
- Mexico reports GUARDIAN lasts 3.5 times longer.
In its lifecycle analysis of polymer banknotes, Mexico found this superior strength and durability led to lower environmental impact across the 11 environmental measures assessed – with the land use and water required for cotton crops being a particular cause for concern.¹
Similarly, the Bank of England lifecycle analysis found: “Overall results of the study indicate that polymer banknotes have superior environmental performance to paper banknotes on the impacts of categories assessed.”²
Water provides one stark example. A 2013 life cycle analysis by the Bank of England found that the £5 polymer banknote note used just 3.64% of the water their thirsty cotton counterparts did – and this lower environmental impact was reproduced across every circulating denomination.³
The longer lifespan of GUARDIAN banknotes also reduces emissions – a major concern for central banks given government policies aimed at supporting the global effort to reach net-zero.
Because they need to be replaced 3–5 times less often, GUARDIAN banknotes also need to be transported 3–5 times less often, which substantially cuts carbon emissions associated with distributing banknotes to and from banks and ATMs.
The evidence for this comes from central banks. For example, a life cycle analysis from 2018 looked at the Banco de México’s polymer series and found emissions had been reduced by 48.8% when compared with cotton-paper banknotes.
The Bank of England reached a similar conclusion. In 2017, a carbon footprint assessment of its polymer series found the carbon footprint of a £5 polymer note is 16% lower than a paper note, while the carbon footprint of a £10 polymer note is 8% lower.
Polymer banknotes are not the same as single-use plastics consumers simply don’t throw banknotes away. Instead, at the end of a long life in circulation, they are returned to central banks, securely sorted, and shredded as a matter of course. They do not become litter.
The vast majority of GUARDIAN banknotes are transformed into durable products at end-of-life. Having been sorted and shredded by central banks, polymer banknotes don’t need to be separated from other waste streams. Their smooth, impermeable surface also means they don’t need to be cleaned, streamlining recycling further.
Polymer banknotes are converted into polypropylene pellets which are then on-sold as commodity products, ultimately gaining a second life. In Chile, for example, GUARDIAN banknotes become a material with properties similar to natural wood, which is used to make floors, roofs and furniture.
With this streamlined process in place, the rate of recycling continues to climb. In its recent report, ‘Cash: A Roadmap to Sustainability’, Reconnaissance International canvassed results from a 2021 survey of 43 central banks.
“[It] found that 92% of those disposing of their polymer banknote waste were either recycling their banknotes or moving towards recycling their banknotes. Two more had yet to generate enough waste to warrant destruction or recycling. In contrast 96% of those on paper banknotes and mixed/composite substrate sent their banknote waste to landfill or for incineration. ”
The reality is that only polymer banknotes have a genuine recycling process. Not only do their cotton counterparts exit the value chain at end-of-life; they go on to create further emissions.
CCL Secure has been at the forefront of pioneering the recycling of polymer banknotes for over 15 years, as was recognised by the banknote industry with a Central Banking Award in 2021.
CCL Secure is here to help central banks achieve their sustainability goals
The data on banknote sustainability is very clear. At every stage of the cash cycle, polymer is the green choice – and CCL Secure Managing Director Neil Sanders says the company is committed to continuous improvement in the sustainability space.
“We have dedicated teams based in Asia, Latin America and Europe, to provide specialised, technical skills and local knowledge – including on how to drive stronger sustainability out- comes,” Mr Sanders said.
“Central banks interested in discussing the benefits GUARDIAN brings should get in touch.”
Asia-Pacific
Mike Thomas,
Director of Business Development MThomas@cclsecure.com
Central and South America
Gustavo Ascenzo
Director of Business Dev. LATAM GAscenzo@cclsecure.com
Europe, Africa and the Middle East
Andrew Bonnell
Director of Business Development / VP Ventes ABonnell@cclsecure.com