Finance Monthly - November 2021 Edition

52 Finance Monthly. Bank i ng & F i nanc i a l Se r v i ce s The impact of plastic banknotes Over the years much have been discussed about the impact of plastic on the environment, with striking images and news of it harming animal and human health. In fact, past research revealed that plastic banknotes are distinctively worse for the planet than cotton-based as they have a high carbon footprint and increase permanent waste at the end-of-life cycle. According to statistics, between 1950 and 2015, more than 8.3 billion tonnes of plastic were produced worldwide. Not even 10% of this was recycled. The negative environmental impact is also exacerbated by the ongoing problem of counterfeiting plastic banknotes, evident in relevant markets and countries. Since their introduction, the number of counterfeit notes on the streets has increased, presenting a major threat not only to the environment but also to our society and economies. But according to ECB, counterfeiting rates of cotton-based euro are now at their lowest level since its introduction, proving the embedded security in the cotton substrate is harder to forge. Whyarecottonbanknotes more sustainable? As a plant, cotton certainly impresses with its sustainable efficiency and negative carbon footprint. All crops produce greenhouse gases during production, including cotton, which emits 1.7 kilograms of carbon dioxide to produce one kilogram of fibre. However, in its leaves and soil, it binds 2.2 kilograms of the greenhouse gas, meaning it removes more CO2 from the atmosphere than it emits. In addition, as cotton fibres are almost pure cellulose, cotton is a very good biodegradable natural fibre. Enhancing sustainability further, the cotton substrate of the banknotes is derived from cotton combings, a by-product from the textile industry as they do not have the qualitative properties required for textile production. For “According to statistics, between 1950 and 2015, more than 8.3 billion tonnes of plastic were produced world- wide. Not even 10% of this was recycled.”