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England's New Currency Is Harming The Climate - Report

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When the Bank of England introduced new polymer plastic banknotes to exist the existing paper currency in 2016, the government promised the new notes would not only be more durable and secure, but also better for the environment because they are more easily recyclable.

But a new study has put those claims in doubt. A side-by-side comparison of polymer versus paper bank notes by Evergreen Finance London, using data from the Bank of England and information on cash manufacture and usage the British Retail Consortium, has found that the new polymer five pound notes release 8.77kg of C02, almost three times more than previous paper notes. That, despite their longer lifespan, correlates to 2.76kg of extra C02 emissions over lifetime.

The Bank of England introduced £5 polymer banknotes in September 2016, and the paper £5 notes were withdrawn in May 2017. A polymer £10 banknote was introduced in September 2017, and the paper note was withdrawn in March 2018. A polymer £20 banknote will be introduced in 2020, followed by a £50 in 2021.

The analysis found that the new £10 notes release 8.77kg of CO2 compared to their cotton-paper predecessors’ 2.92kg. For £5 notes, that’s 4.97kg for polymer versus 1.8kg for paper.

The findings differ from the claims made by the Bank of England, which find the new notes to be less greenhouse-gas-intensive. But the bank’s data is based on what it calls functional units - the circulation of 1,000 banknotes over 10 years - rather than the number actually used by an individual, their manufacture and the number of exchanges they go through.

The report looks at other forms of electronic payment, such as Apple Pay, and finds the most environmentally friendly means of payment is a credit card, despite being made from PVC plastic. Over its three-year life, a standard card represents just 20.8g of CO2 production. The emissions from wireless payments adds 40g of CO2.

In short, the comparison concludes that the greenest way to pay is by credit or debit card. With the world quickly moving to cashless payments, the impact of the new polymer banknotes may not be felt much longer.