Japan's 'green steel' push gains ground but hurdles remain

Japan's push to supply 10 million metric tons of green, or low-carbon, steel and cut greenhouse gas emissions by 30% from a 2013 base year by 2030 is gaining traction. Major steelmakers in the country have set phased decarbonization targets to reduce emissions through 2030 and reach carbon neutrality by 2050, in line with national goals.

However, barriers remain. While major manufacturers have increased low-carbon steel supply through facility upgrades and technology development, the full impact of these capital investments could take longer to materialize. Many steel companies have cut emissions from 2013 levels, but the reduction has largely come through production controls. Looking ahead, Japanese manufacturing plants aim to expand electric arc furnace capacity, invest in direct-reduced iron and introduce additional measures to lower the carbon intensity of steelmaking, according to the second part of a five-part Ferrous Series by S&P Global Energy.