Report tackles BSP sustainability

TURNING old banknotes into alternative energy sources is just one of the sustainability efforts of the Bangko Sentral ng Pilipinas (BSP).

I n its maiden Sustainability Report, the BSP outlined its progress in advancing the sustainability agenda in the Philippine financial system toward creating more sustainable, inclusive, and resilient societies and economies.

T he BSP said demonetized and mutilated banknotes undergo a shedding process that allows these to be converted into briquettes that can be used as alternative fuel source for biomass gasification facilities.

The use of briquetted banknotes as an alternative fuel source instead of outright burning reduces the need to cut down trees, thereby contributing to a reduced carbon footprint,” the report stated.

B SP said its regional office in Greater Manila generated a total of 1.17 million kilograms of briquetted banknotes that were properly disposed and re-used as an alternative fuel source.

T he central bank also entered into a contract with a service provider that will use the briquetted retired banknotes, banknotes securities waste, and other non-briquetted security waste as alternative fuel for cement manufacturing, instead of using coal and other types of fuel fossils.

“ Buyers of briquetted banknotes are required to submit an Environmental Compliance Certificate [ECC] issued by the DENR [Department of Environment and Natural Resources],” the report stated.

I n terms of old and unfit coins, the BSP said it uses a coin defacement machine prior to disposal. This prevents the risk of recirculation and maintains the integrity of the Philippine currency.

B SP said buyers of defaced coins are also required to submit ECC requirements. The BSP has defaced a total of 597 metric tons of counterfeit, unfit, mutilated, and demonetized (CUMD) coins since the start of the coin defacement operation in 2021.