The lack of domestic ambition is reflected in the failure to progress the international agenda on industrial – and steel – decarbonisation under its G7 leadership in 2023. [...] An analysis from E3G shows this is costly and inefficient and risks delaying decarbonising the power sector, while taking away a premium resource which remains the only viable solution for steel sector decarbonisation.10 Limited ambition on emission reductions and funding The strongest signal for policy clarity and direction comes in Japan’s NDC: the emissions reduction target for industry is 174. [...] The Green Innovation Fund dedicates over $3bn to the use of hydrogen in the steel sector. [...] The current in-country movement towards mass-balance methods16 by companies like Kobe Steel, Nippon Steel and JFE Steel indicates the need for direction on green steel definitions and standards: according to such methods, a 10% emissions reduction across 100 tonnes of manufactured steel is translated into the sale of 10 tonnes of zero-emission steel.17 15 IEA, 2023, Emissions Measurement and Data. [...] We work on the frontier of the climate landscape, tackling the barriers and advancing the solutions to a safe climate.
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