Japan: Govt moots adoption of green steel in 20 public sector projects starting this fiscal

• Authorities planning full-scale utilisation of GX Steel in public projects
• Investigations underway for discovery of adequate premium for green iron

A trial construction aimed at expanding the use of green iron (GX steel) in public works will begin in earnest this fiscal year. In the first year, fiscal year 2026, about 20 projects are expected to begin nationwide. Full-scale utilisation in public works is expected, but the Ministries of Land, Infrastructure, Transport and Tourism and METI plan to utilise data and insights gained from trial construction to organize issues for full-scale utilisation.

There are plans to gradually expand the scope of trial construction projects. Regarding the FY2026 project, specific cases are being currently finalised, but ultimately, about 20 projects such as construction and bridge work are expected to be selected.

In the trial construction, the first step is to calculate the overall CFP (carbon footprint) of public works using green iron. The plan is to investigate how the carbon dioxide (CO2) emission reduction value (GX value) of green iron affects the overall CFP of public works.

Additionally, relevant information about construction costs and procurement will be collected. Green iron has the same quality and functionality as regular steel, but its manufacturing cost is generally higher. The authorities are also investigating how much premium (additional charge) this green iron will have for its environmental value.

Through a series of pilot projects, the Ministries of Land, Infrastructure, Transport and Tourism and METI will organise issues for full-scale utilisation from fiscal year 2018 onward.

The pilot construction for green rail utilisation was budgeted in response to the Ministry of Land, Infrastructure, Transport, and Tourism’s ‘Decarbonization Action Plan for Civil Engineering Construction.’ The funding needed for trial construction and surveys from fiscal 2014 onward will be covered by GX Economic Transition Bonds.

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