Japan: Steel industry achieves 23% CO2 emissions cut in FY'23

• Lower crude steel output leads to reduced emissions
  
  
• Industry achieves 79% progress towards 2030 target
  
  

JMD: CO2 emissions from Japan's steel industry touched 153.13 million tonnes (mnt) in FY'23, a 23% drop compared to the 2013 baseline year for their 2030 target, according to the Japan Iron and Steel Federation (JISF).

While decreased production was a major factor for this reduction, successful efforts by steel manufacturers to conserve energy and increase the use of ferrous scrap also contributed. The federation's Carbon Neutral Action Plan report contains these findings.

Japan's steel industry has achieved a significant 79% progress rate towards its 2030 emissions reduction target. In FY'23, participating companies' CO2 emissions totalled 148.35 mnt, marking a 23.7% decrease from FY'13 levels. This reduction of 46.08 mnt was largely driven by production fluctuations, which accounted for 38.76 mnt, or approximately 80% of the decrease.

In FY'23, domestic crude steel production declined to 82 mnt, marking a 26-mnt drop from FY'13. However, the industry's focus on energy conservation helped stabilise the emissions intensity index at 93.2. JISF's action plan report indicated a notable CO2 reduction of 35.16 mnt in FY'23.

Outlook

Japan's steel industry is likely to continue its push towards decarbonisation. While production fluctuations have played a significant role in recent emissions reductions, the industry's focus on energy efficiency and ferrous scrap utilisation suggests further progress is expected. The reliance on production cuts for emissions reduction also indicates a potential challenge in balancing environmental goals with economic output.

Note: This article has been written in accordance with an article exchange agreement between Japan Metal Daily and BigMint.