South African Reserve Bank –Currency Reimagined: Recycling Banknote Waste for a Sustainable Future

This project aimed to develop a practical, sustainable end-of-life solution for shredded banknote waste to support the South African Reserve Bank’s Net Zero and Waste Management initiatives. Paper banknotes have long presented a recycling challenge, with thousands of tonnes ending up in landfills and harming the environment. The project sought to transform this waste into valuable products, promoting circular economy principles. A thorough evaluation of potential solutions, including papermaking, tissue production, board manufacturing, brick making, cement additives, composting, and energy-recovery incineration, identified significant technical and market limitations. Key issues included limited and inconsistent waste volumes from SARB, contamination risks affecting recyclers’ existing operations, and the unsuitability of composting due to potential leaching of hazardous chemicals from inks and varnishes. Following comprehensive industry consultations, the SARB has determined that a locally and technically feasible solution exists to transform shredded banknotes into composite board products without the need for pretreatment. This approach facilitates the manufacture of durable and cost-effective goods, including keyrings, drink coasters, school desk counters, roof sheets, and awards, among other items, while also significantly reducing transportation emissions associated with disposal in distant landfill sites. A flagship achievement of this innovation was the production of the 2025 G20 Tech Sprint Trophies, manufactured from shredded banknote waste symbolising how value, innovation, and environmental responsibility can be reimagined within the currency lifecycle. This project tackles a long-standing environmental issue in the banknote industry, offering clear benefits: pollution reduction, resource savings, less landfill waste, and enhanced environmental responsibility, supporting the SARB’s sustainability goals.

South Africa

This project transforms a difficult waste stream into valuable products using a local process that requires no pretreatment and processes shredded banknotes as-is. Composite boards are made directly from the fibre mix, eliminating the need for chemical reprocessing or changes to existing production lines. This lean approach accelerates the transition from waste to finished product, reducing costs and emissions. The system is designed to be flexible across different volumes, enabling efficient small-batch production for custom orders, and it scales well to SARB’s small, variable material quantities. Importantly, the board platform supports full circularity by processing production scraps, and used boards can be mechanically processed into new panels, promoting a reuse and remanufacturing cycle rather than disposal. Local manufacturing adds even more value by shortening transport routes, reducing carbon emissions, enabling quick responses to demand, and creating job opportunities in South Africa. The unique qualities of the material contribute to its innovation. Since banknotes are built to withstand rough handling, the resulting boards are durable and water-resistant. This makes them suitable for various uses, including interior wall panels, furniture parts, school desktops, roof sheets, awards, keyrings, and coasters. These products do more than replace traditional materials; they turn waste into something valuable and visible, encouraging conversations about money, sustainability, and responsible resource use. Aesthetic customisation also sets these products apart. The natural colours, fibres, and tiny patterns from mixed denominations create unique textures and looks. Accents from the original banknote colours enable the creation of distinctive awards, branded fixtures, and art pieces that tell an authentic story of the circular economy.

The project delivers a measurable, positive environmental impact by diverting significant volumes of shredded banknote waste per year away from landfill disposal.  Landfill diversion directly reduces the long‑term environmental risks associated with banknote waste, including the leaching of inks, dyes, and varnishes, which do not readily biodegrade and were specifically identified as a barrier to composting due to insufficient deterioration in soil environments. The project also reduces carbon emissions by preventing the need for long‑distance transport to remote landfill facilities. Local repurposing partners enable shorter transport routes, reducing fuel consumption and associated emissions. Because these products can be recycled again at the end of their useful life, the project supports a closed‑loop system, further reducing the environmental carbon footprint of banknote destruction and advancing SARB’s commitment to net‑zero and circular‑economy principles. Overall, the project transforms a difficult‑to‑recycle waste stream into a sustainable, circular resource, delivering proven reductions in landfill use, carbon emissions, and soil‑contamination risk. With regards to the social aspects, the program strengthens South Africa’s reputation as a leader in sustainability, inspiring other countries to adopt similar practices. Furthermore, raises public awareness about the importance of recycling complex waste streams. Beyond these outcomes, the project carries symbolic weight. Banknotes represent value and trust in society; recycling them responsibly reinforces the idea that sustainability is a form of value creation. By turning waste into opportunity, the project embodies the principles of the circular economy.

The project directly addresses a globally recognized sustainability gap in the cash lifecycle,  the end-of-life treatment of unfit banknotes. The majority of withdrawn banknotes are disposed of through landfill or incineration, resulting in avoidable waste, emissions, and the permanent loss of valuable materials. By repurposing this waste stream into new products that can be further recycled, the project achieves immediate, measurable waste reduction while transforming a liability into a productive resource. From an emissions perspective, diverting banknote waste from landfill reduces greenhouse gas emissions. These benefits are increased by using repurposed banknote fibers instead of newly extracted raw materials in downstream products. This approach prevents waste and reduces production emissions, leading to a significant decrease in environmental impact. The project also delivers strong resource‑efficiency outcomes. Banknotes are manufactured from high‑quality cotton fibres, making them exceptionally well-suited to reuse and further recycling. Repurposing preserves the embedded value of these materials, extends their useful life, and supports multiple recycling cycles rather than single‑use disposal. This aligns closely with circular‑economy principles and responsible resource stewardship. Critically, the model is scalable. Banknote withdrawal is a continuous, predictable process globally, providing a consistent feedstock for repurposing initiatives. As infrastructure and partnerships expand, the approach can be replicated across regions and institutions, amplifying impact over time. Overall, the project closes a well‑documented sustainability gap in the cash lifecycle, delivering tangible environmental benefits today while establishing a practical, scalable pathway toward a more circular and responsible cash economy.

The SARB has committed to environmental sustainability, anchored in its goal of achieving net‑zero emissions by 2035. This project directly supports that commitment by advancing one of SARB’s most critical focus areas: responsible, efficient, and forward‑looking waste management. As part of its sustainability roadmap, SARB conducted detailed baseline environmental assessments to better understand its current emissions profile, energy consumption patterns, and waste streams. These insights have enabled evidence‑based decision‑making and informed the prioritisation of decarbonisation initiatives. Key focus areas include energy‑efficiency improvements, optimisation of building systems, the expansion of renewable‑energy solutions such as solar power, and the gradual replacement of carbon‑intensive technologies with low‑emission alternatives. Waste management is a vital component of this broader programme. SARB aims to reduce waste at source, promote recycling and repurposing, and minimise landfill disposal in support of circular‑economy principles. This approach is reinforced through the design and operations of the Green Building‑certified SARB Head Office, which features energy‑efficient HVAC systems, water‑saving technologies, responsible material selection, and structured waste‑recovery processes. SARB’s sustainability framework extends across its subsidiaries, including currency‑production facilities, to ensure consistent environmental performance and responsible operations throughout the value chain. The SARB also collaborates with industry and strategic partners to reduce upstream and downstream environmental impacts, strengthen resilience, and promote sustainable innovation. To further embed environmental stewardship into its operations, SARB is conducting a double‑materiality assessment. This work identifies both the environmental risks affecting the SARB and the impacts of its own activities on the environment, enhancing transparency, strengthening risk management, and integrating climate considerations into strategic and operational decision‑making. Overall, the project meaningfully advances the SARB’s sustainability goals and demonstrates a measurable, long‑term commitment to environmental responsibility.