The scheme, which is being run in partnership with recycling company Simply Cups, aims to tackle the seven million coffee cups that are thrown away each day across the UK with less than 1% of these cups being recycled.
The recycling methods used for the Square Mile Challenge will process the cups to create either a plastic or recovered fibre material, which is made into new products.
Wendy Mead, chairman of the City of London Corporation’s Environment Committee, said: “We are very excited that the City of London will be the first area in the UK to undertake such a significant commitment to tackling the problem of coffee cup waste.
“In April we are installing facilities to collect disposable coffee cups on the street and in stations, coffee shops and businesses across the Square Mile and our ambition is to recycle half a million cups in that first month.”
The initiative is being supported by Bunzl Catering Suppliers, Costa, McDonald’s, Nestle, Pret A Manger, and Starbucks.
It follows the launch of the Paper Cup Manifesto in June 2016, which garnered over 40 signatories from companies involved in the coffee industry, committing to improve recovery and increase recycling of paper cups.