Japan: Govt to develop data-sharing system for sharing GX steel CO2 reduction

• METI to build a GX steel CO2 reduction tracking system
• Initiative seeks to accelerate GX steel adoption

Japan’s Ministry of Economy, Trade and Industry (METI) plans to develop a system to enable seamless sharing of GX steel-related CO2-reduction data across entire supply chains. The initiative aims to ensure that the CO2-reduction value (GX value) is accurately transferred to end users, even as steel passes through multiple processes such as cutting, fabrication, and assembly.

GX Steel: GX steel refers to steel produced using technologies and raw-material adjustments that reduce CO2 emissions. Under guidelines issued by the Japan Iron and Steel Federation, manufacturers can allocate these CO2-reduction values to any steel product and disclose their corresponding carbon footprints, ensuring greater transparency for buyers.

Study group formation: METI will establish a dedicated study group to assess market needs and identify the hurdles in developing this system. The group will hold three meetings by March 2026 and aims to compile a detailed investigation report by the end of FY’26. Participants will include steelmakers, distributors, processors, and steel-consuming industries, providing insight into practical requirements and challenges.

Current challenge: Although direct transactions between mills and end users currently require only the exchange of reduction certificates, tracking the carbon footprint becomes significantly more complex once GX steel moves through multi-step supply chains.

To improve the accuracy of CFP calculations for downstream industries, METI says a dedicated information-sharing system is needed. Better traceability is expected to raise recognition of GX steel’s environmental value and support wider market adoption.

Outlook

The study group’s findings are expected to shape the initial  development of the system, laying the foundation for a unified framework to share GX steel CO2-reduction data. Once implemented, the system is likely to enhance supply chain traceability, improve the accuracy of CFP reporting, and make it easier for downstream industries to verify carbon-reduction benefits. Together, these improvements are expected to encourage wider adoption of GX steel and strengthen Japan’s role in the global transition toward greener steelmaking.

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