There are billions of GUARDIAN banknotes circulating throughout Latin America, and every one of them will be recycled. That’s more than 500 million banknotes per year. The outlook was radically different just one decade ago, when only a handful of central banks were recycling, with the vast majority of banknotes being sent to languish in landfill. So, what changed?
In 2015, CCL Secure’s team in Latin America launched the circular banknote waste management program. It offers a systemic solution for central banks to transition towards a more circular model, and away from the linear ‘take-make-dispose’ model of managing polymer banknote waste.
The program is underpinned by CCL Secure’s adoption of the UN Environment Program’s concept of extended producer responsibility. In simple terms, this means we take an active role in supporting stronger environmental outcomes throughout the product life, especially in the post-consumer stage.
While it has been possible to recycle polymer banknotes since their inception, uptake was slow, with central banks generally impeded by a lack of awareness, information and infrastructure. This could be compounded by legal and administrative bottlenecks, and for some smaller nations, issues with scale.
CCL Secure has proudly helped overcome these challenges by catalysing a cultural shift that’s powering the push towards zero waste, with comprehensive support services and knowledge sharing.
Support for Central Banks
The first step on the road to recycling is to assess the availability of recycling options – domestically, regionally or overseas. The reality is that not every market will have a suitable local recycling industry.
CCL Secure’s staff are available to support central banks in understanding the technical requirements for processing end-of-life banknotes. In Latin America, we have also invested through our sister company, Innovia Films, in establishing a specialised recycling facility at their plant in Zacapu, Mexico.
The Zacapu plant has become a key hub, used by several central banks in the region, and capable of processing up to 700 million polymer banknotes per year – but it is just one part of a broader network. CCL Secure has been connecting central banks with recycling partners for more than two decades.
Once a recycling partner has been identified, CCL Secure can support central banks to undertake small batch testing trials that will help confirm the viability of a facility. This process also provides opportunities to share information about the range of second-life products recycled banknotes can be used to produce. Optimal long-term outcomes will be achieved with highly durable products like plastic wood, which lasts several decades, because it maximizes the productive life of polypropylene.
Finally, CCL Secure is also available to assist with the logistical and administrative aspects of transporting the banknotes at end-of-life. This includes shredding, storage, and handling protocols.
Real Results
Between 2017 and 2023, the global average rate of recycling for GUARDIAN banknotes was 85 per cent. Latin American stood out as a regional leader, achieving the higher rate of 90 per cent – but even this is an underestimate. The true figure is closer to 100 per cent, because some central banks with smaller volumes were storing end of life notes to be recycled in batches that are more economical.
This achievement reflects the results of our circular banknote waste management program. One decade since adopting the extended producer responsibility model in Latin America, every central bank using GUARDIAN is recycling their polymer banknotes into durable second-life products. Over 500 million banknotes are being recycled each year, with many processed at the Zacapu plant.
When we drill down into this data, it shows more than 750,000 kilograms of CO2 is being prevented from polluting the environment annually through the reuse of plastic. Furthermore, when polymer banknotes are used to produce plastic wood, this prevents the felling of around 5,000 trees each year. They can continue to act as carbon sinks, with capacity to absorb 140,000 kilograms of CO2 annually.
Communication and Culture Change
The success of the circular banknote waste management program has largely been driven by cultural change, as central banks place increasing importance on sustainable outcomes, in line with the expectations of governments, consumers and the corporate community. Through our recycling program, CCL Secure has also been active in communicating the success of recycling initiatives.
In Costa Rica, for example, we have collaborated with the Costa Rican Chamber of the Plastics Industry, a local recycler called Producol, and the ProParques Association to install signs and build trails in wilderness areas using plastic timber that has been produced using unfit banknotes. Recycled plastic walkways have also been installed on beaches to allow wheelchair users to access the ocean, this time in collaboration with Producol and the Costa Rican Plastics Industry Association.
Finally, CCL Secure sponsored visual artist Monica Lizano to create over 100 works on recycled plastic wood with a focus on marine motifs, because, at the end of the day, the drive to increase recycling is underpinned by a shared commitment to protect natural places for generations to come.