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Japan’s Nippon Steel Aims To Reach Net Zero Greenhouse Gas Emissions In 2050

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The target of reducing greenhouse gas emissions to net zero in 2050 is “one of the most important management issues,” Nippon Steel Corp. President Eiji Hashimoto, 65, said in an interview with The Yomiuri Shimbun. He indicated that the company would strive to achieve this goal set by Prime Minister Yoshihide Suga’s Cabinet.

Countries have begun to compete over the development of environmental technologies, and he pointed out that “we need financial support from the state government,” to achieve the target.

The steel industry emits the largest amount of carbon dioxide in the manufacturing industry because when iron is extracted from iron oxide in iron ore, oxygen reacts with carbon, producing carbon dioxide.

Steelmakers around the world are trying to find ways to produce steel using hydrogen instead of carbon to prevent CO2 emissions. At present, however, it remains at the experimental level in small facilities. For the time being, Nippon Steel aims to achieve the target by melting down steel scrap and using electric furnaces, which emit relatively little CO2.

“Japanese [companies] are ahead of other countries [in environmental technology]. I am confident that if we receive the same level of government support as in other countries, we will be able to compete [internationally],” Hashimoto said.

On the other hand, he pointed out that steelmakers in China, Europe and the United States could develop their technologies at a faster rate with government funding. He believes that in the future, steel products must be environmentally friendly or they could lose their competitive edge. He added: “[If we fall behind foreign rivals], the steel industry will not be able to support manufacturing and many jobs will be lost.”

As for the development of technologies to capture and store CO2, he expressed his desire to cooperate with the electric power industry. “If each company were [to carry out research and development] separately, development would not progress. The government should take the lead in establishing a system to promote R&D,” he said.

The Cabinet is considering the introduction of carbon pricing in the form of a carbon tax and emissions trading, which would impose an economic burden on companies according to their greenhouse gas emissions.

“[If this system is introduced], it will reduce the amount of money we can spend on R&D. It would be a defeat for the goal of decarbonization,” Hashimoto said.
 
 


 
 

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