German Bundesbank study estimates euro banknote circulation’s annual environmental impact as equivalent to a five-kilometre car trip per person

The German Bundesbank published a commissioned study on the environmental impacts of issuing, distributing, using and disposing of euro banknotes in Germany, concluding that the banknote cycle has a low ecological footprint. It estimates the annual impact per person at roughly the same as a five-kilometre car journey, or about 0.0078% of an individual’s total annual environmental burden in Germany. Using 2019 as the reference year, the study estimates the environmental footprint of an average adult’s annual cash payments at 80 micro environmental points (µPt). The largest contributors were electricity consumption by cash machines (40%), followed by transport (32%) and the processing of euro banknotes (23%); disposal slightly improved the balance (minus 0.5%) because end-of-life banknotes are incinerated and energy is recovered. The assessment applies the European Commission’s Product Environmental Footprint method and was prepared by ESU-services; results are described as consistent with the European Central Bank’s 2023 euro area study. Further improvement options cited include more energy-efficient cash machines, greater use of renewable electricity and, longer term, using electric vehicles for banknote transport, which the study notes is currently constrained mainly by vehicle weight. The Bundesbank plans to feed the findings into its planning for a cash cycle that remains secure, efficient and environmentally sustainable.