Can Money be Eco-Friendly?

In an attempt to meet environmental targets, the Bank of Portugal is proposing to do just that. How is this possible and what does it involve?

Go “further in its targets than the Climate Law itself,” according to the vice-governor of the Bank of Portugal.

With this objective in mind, Banco de Portugal is focussed on respecting the cash strategy. A strategy that the central banks of the euro area have agreed to fulfil by the year 2030.
Some of the goals include “making euro banknotes as environmentally friendly and sustainable as possible by 2030, without compromising the widespread availability and acceptance of cash“.


How is this possible?

Euro banknotes are produced using fibers derived from spinning cotton, which would otherwise be considered waste in the textile industry. Since 2014, sustainable cotton fibers have been increasingly integrated into the production process, including organic cotton, fair trade cotton, or cotton from integrated production methods. Starting from 2023, euro banknote paper has been exclusively made using sustainable cotton. The Eurosystem aims to achieve a target of incorporating 100% organic or fair trade cotton, which has a lower environmental impact compared to integrated production cotton, by the year 2027.

Check the full article here https://www.bportugal.pt/en/page/cash-and-sustainability.

Portugal has shown strong commitment to becoming a more eco-conscious nation, with numerous initiatives and ambitious goals in action. Here’s a look at some key areas:

Renewable Energy: Leading the charge in renewable energy production, wind and solar power account for a significant portion of the country’s energy consumption. In 2022, Portugal hit a record, with 67% of its electricity derived from renewable sources.

Energy Efficiency: Measures are being implemented to improve energy efficiency in buildings and transportation. A national program supports building energy refurbishment, aiming to reduce energy consumption and greenhouse gas emissions.

Sustainable Mobility: Portugal prioritizes eco-friendly travel options, investing in cycling infrastructure and public transport. Additionally, it encourages electric vehicle adoption through tax breaks and other incentives.

Nature Protection: Nearly 30% of Portugal’s territory falls under protected areas, reflecting its commitment to biodiversity conservation. Action plans for endangered species further demonstrate this dedication.

Circular Economy: Transitioning towards a circular economy, Portugal targets waste reduction and increased material reuse and recycling. Measures include curbs on single-use plastics and boosted recycling rates.

Environmental Awareness: Growing public concern for the environment translates into individual actions to minimize environmental impact. This shift in consciousness plays a vital role in Portugal’s sustainability journey.

Impact on the Real Estate Market:

Portugal’s sustainability efforts hold various benefits for the real estate market:

  • Rising Demand for Green Buildings: Increased environmental awareness fuels the demand for properties designed with energy efficiency and eco-friendly materials in mind.
  • Higher Value for Sustainable Properties: Homes incorporating sustainability features often command higher market values compared to traditional properties.
  • Reduced Operating Costs: Energy-efficient properties typically incur lower operation costs, attracting both buyers and tenants.
  • Improved Quality of Life: Properties situated in areas with good air quality, green spaces, and sustainable mobility infrastructure offer a significantly enhanced quality of life for residents.

In conclusion, Portugal’s significant strides towards environmental responsibility hold valuable benefits for the real estate market. These include a rise in demand for eco-friendly properties, increased value for sustainable homes, reduced operation costs, and ultimately, a higher quality of life for residents.