Collaboration with society, policy proposals, and industry activities to achieve carbon neutrality
Decarbonization of steelmaking is an extremely ambitious challenge. In addition to development of carbon neutral technology options, carbon-free hydrogen and electricity, the CCUS, and other factors of social infrastructure are indispensable.
The realization of carbon neutrality in the steel industry is not just a challenge for steelmakers, given that steel as the basic material underpins international competitiveness in manufacturing. It is a national challenge that the whole nation should take it up, based on the policy of aiming at achieving the industry’s international competitiveness and carbon neutrality, as well as the national strategy that provides strong, continuous fiscal and other support.
The realization of carbon neutrality in the steel industry requires huge R&D expenditures and capital expenditures for practical use. Nippon Steel alone is expected to roughly require ¥0.5 trillion in R&D expenses and ¥4–5 trillion in capital expenditures. The decarbonizing technology development for the steelmaking process is presenting an appearance of a state-to-state competition. In order to continue to lead the world and maintain and strengthen Japan’s overall industrial competitiveness, longterm, continuous government support is indispensable for “discontinuous” innovation and other R&D efforts and equipment implementation.
Europe, the United States, and China have adopted a variety of policies aimed at achieving carbon neutrality on the premise of securing international competitiveness in the steel and other basic materials industries. Japan also needs to introduce a drastic policy system based on national strategy under strong government leadership in order to achieve carbon neutrality ahead of those countries and to maintain and strengthen the international industrial competitiveness.
For realizing these policies, Nippon Steel is determined to take every opportunity to make various proposals on Japan’s climate change measures and energy policies based on the Paris Agreement, and to spearhead activities through industry organizations.
Investments needed for the carbon neutral steel project
1 Minimum level estimated to be required for the time being
Policy recommendations for realizing a carbon neutral society
President Hashimoto of Nippon Steel is a member of the Strategic Policy Committee, under the Advisory Committee for Natural Resources and Energy of the Ministry of Economy, Trade and Industry (METI), Vice Chairman of Nippon Keidanren (Japan Business Federation), and a member of the Green Transformation (GX) Implementation Council. The Executive Vice President in charge of Environment is also a member of the Central Environment Council of the Ministry of the Environment, representing Keidanren.
In meetings of these government councils and committees and Keidanren, we express our commitment and determination of the steel industry for achieving carbon neutrality. We have also recommended to promptly create Japan's policy package that combines climate change measures and measures to maintain and enhance international competitiveness of industries, led by the government.
In addition, we have been arguing for the need for a policy to change the energy supply structure including active promotion of nuclear power utilization, for promotion of policies to achieve carbon neutrality in the materials industry, for robust and continuous measures to promote public and private investment across all stages for the decarbonization transition from research and development to equipment implementation, for measures to ensure equal footing to deal with hydrogen, electricity, and raw material operation cost increases, and for the need to develop a roadmap to realize CCUS implementation. We contribute to policy formulation, as exemplified by the recently passed GX Promotion Act and GX Decarbonization Electricity Act, which reflected these recommendations.
Moreover, we are actively developing policy proposals to achieve carbon neutrality by making use of all opportunities with the government, relevant ministries and local governments, etc. other than the above-stated councils and committees.
Efforts to address climate change through industry organizations
To promote Japan's efforts to achieve the mid-term goal of the Paris Agreement, the Japan Iron and Steel Federation (JISF) declared that Japan's steel industry would take up the bold challenge of achieving carbon neutrality. In March 2022, the JISF set the goal of “reducing energy-derived CO2 emissions in fiscal 2030 by 30% compared to fiscal 2013 levels,” an ambitious goal even from an international perspective.
In May 2022, Keidanren announced its initiative, Towards Green Transformation (GX), recommending measures needed to achieve carbon neutrality in 2050 (GX policy package) and other agendas. We are also taking a leading role in the JISF and Keidanren formulating their climate change measures.
Meanwhile, we participate in climate action of the global steel industry, led by the worldsteel association, serving as the worldsteel Climate Action data provider to calculate and report CO2 emissions from steelworks using universal methods.
