- Data linkage will enable carbon footprint labelling
- Move comes amid JISF’s revision of green steel guidelines
Japan Metal Daily: Japan’s Ministry of Economy, Trade and Industry (METI) is planning to implement a mechanism to share information on green steel, particularly CO2 reduction results, across supply chains (SCs). This initiative has been launched in anticipation of the broader adoption of green steel, which is produced with reduced carbon dioxide (CO2) emissions. Steel products go through multiple stages, such as cutting, processing, and assembly, before reaching consumers. Sharing green steel data across the supply chain can showcase its eco-value, prompting manufacturers to opt for it and grow the green market. To start, METI will explore key information to share and develop a data linkage platform.
Current status of green steel market in Japan
Currently, green steel sales by three blast furnace manufacturers come with a third-party CO2 reduction certificate, helping buyers account for Scope 3 emission reductions. However, tracking this data gets complex when multiple supply chain stages are involved, making it difficult for the information to reach end consumers, unlike direct sales to major buyers such as automakers.
METI’s plan for data linkage
METI’s initial survey project will focus on organising the necessary requirements for data linkage, including data specifications, traceability, and access management. Following this, demonstrations of data linkage will be conducted to identify any issues. The final mechanism for data linkage will be considered based on these survey results.
This data linkage is also crucial for working with end consumers. For example, the automotive industry is starting to label products with their carbon footprint (CFP). This means steel suppliers will soon need to provide CO2 reduction information for automotive steel. Since the auto industry already uses traceability services for vehicles and batteries, linking steel and automotive data is a highly effective next step.
Alignment with industry guidelines
The Japan Iron and Steel Federation (JISF) is revising its guidelines for green steel. These new guidelines will use the standard mass balance method but will specifically detail how to allocate CO2 reduction results. This is in direct response to the need to display a CFP for steel.
Since the CFP method requires labelling for all steel (both green and non-green), the market will contain a mix of products. To clearly differentiate and identify “green” steel, it is essential to share accurate CO2 reduction information.
To address this challenge, the METI is planning to launch a study group focused on transmitting this reduction information, working alongside the existing survey project.
Outlook
Green steel demand is likely to rise as Japan’s automotive industry adopts carbon footprint labelling. METI’s data linkage initiative will facilitate this growth by enabling steel suppliers to share CO2 reduction data effectively, enhancing transparency and driving the industry towards sustainability.
Note: This article has been written in accordance with a content exchange agreement between BigMint and Japan Metal Daily.
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