FAQ on the Product Environmental Footprint study of euro banknotes
Q1 Based on the Product Environmental Footprint results, what is the environmental impact of banknotes?
The Product Environmental Footprint study concludes that the environmental impact of a person paying with euro banknotes in the euro area over the course of one year is very low. It is equivalent to the impact of driving a car for 8 km, or 0.01% of the total environmental impact of a European.
Q2 Is this the first time you are studying the environmental impact of banknotes?
No. In 2004 we conducted a Life Cycle Assessment (LCA) to measure the environmental impact of the first series of euro banknotes. The LCA is an internationally recognised framework for evaluating the environmental impact of a product, such as a banknote. It looks at all stages of a product’s life cycle, from beginning (raw material extraction) to end (final disposal). Its results were used to implement measures to reduce the environmental impact of euro banknotes, such as replacing conventional cotton with sustainable cotton in banknote paper.
Q3 What is the Product Environmental Footprint methodology?
The Product Environmental Footprint (PEF) methodology is related to the Life Cycle Assessment method mentioned in the answer to the previous question. It was developed by the European Commission to evaluate the environmental footprint of similar products and services. The PEF methodology covers 16 environmental impacts, including climate change caused by greenhouse gas emissions, land use and water use. This is the first time a PEF methodology has been used to study the environmental impact of banknotes as a payment instrument.
Q4 Why did you choose the Product Environmental Footprint methodology?
Product Environmental Footprint (PEF) results make it easier to compare the environmental footprint of different types of products and services. The PEF methodology also provides clear guidance, requirements and technical details on how to assess the environmental impact of banknotes as a payment instrument. It provides a fair and unbiased assessment of the complex network of stakeholders in the euro cash cycle, regardless of their size, industrial sector or geographical location.
Q5 Are the Life Cycle Assessment and the Product Environmental Footprint results comparable?
As the 2004 Life Cycle Assessment and the current Product Environmental Footprint study did not use the same functional unit or methodology, it is not possible to make direct comparisons.
Q6 What actions will be taken as a result of the Product Environmental Footprint study?
The Eurosystem’s objective is to reduce the environmental footprint of cash. The Product Environmental Footprint study will be the baseline for setting environmental targets and taking concrete steps towards improvement, as well as for reviewing and complementing existing initiatives. The study will also be used to assess how any potential changes to banknote features will affect the environmental footprint of the cash cycle.
Q7 Are euro banknotes less or more environmentally friendly than other means of payment?
This is the first time that the Eurosystem has used the Product Environmental Footprint methodology to study the environmental impact of euro banknotes. At this stage we do not know how paying with banknotes compares with other means of payments but we are currently investigating the possibility of conducting a similar study for other ways of paying.
Q8 Will the Product Environmental Footprint study of banknotes be repeated in the future?
The intention is that similar studies will be repeated by the Eurosystem on a periodic basis.