Posts Tagged ‘JISF’

Japan’s steel sector cuts CO2 emissions by 6% in 2009/10

SBB 18 November 2010 Amid debate in Japan over carbon taxes and trading schemes, the Japan Iron & Steel Federation (JISF) says that the country’s steel industry emitted 165.6m tonnes of carbon dioxide last fiscal year, a 6% dip on the 2008 figure and a 17.5% drop on the benchmark fiscal 1990 total. The steel sector’s energy consumption also fell by 17.2% from 1990.

“CO2 emissions last year declined significantly mainly because of the large drop in crude steel output,” a JISF spokesman tells Steel Business Briefing. Japan’s crude steel output in the year to last March reached 93.7mt – a decrease of 10.5% from the 1990 total.

Japan’s steel industry is “voluntarily” cutting energy consumption by an average of 10% during fiscals 2008-2012 compared with 1990 levels, and CO2 emissions by 9% on the premise of 100m t/y of raw steel output.

By undertaking reduction schemes voluntarily, the steelmakers hope to dissuade the government from setting mandatory targets supported by fines and penalties, SBB notes.

The 2008-2009 reductions in emissions of 12.2% and 17.5% respectively from 1990 greatly exceeded the JISF’s target. “But steel output has been recovering and cutting CO2 emissions by 9% over the five years [to 2012] won’t be easy,” the JISF spokesman admitted. Japan’s crude steel output in April-September was up 28% year-on-year at 55.42m t.

The JISF says that outside of the voluntary scheme its members will continue “maximizing” energy savings and emissions reductions by supplying high-quality steel products to end-users to reduce CO2 emissions over the product life cycle.

Japanese industry claims climate bill burdensome

Japan’s steel industry’s arguments on GHG emissions trading seemingly focus on the cost burden, on specific reduction targets and the government’s consultation procedures. The cost burden may be large, but it should not be any heavier than that born by the EU industry; and similarly the risk of carbon leakage from Japan should also not be a greater problem than for the European steel sector. Elsewhere, specific targets are often requested by industry on the grounds that they reduce uncertainty, so it is strange to see them questioned in this case.

Yomiuri Shimbun 15 March The basic climate bill approved by the Cabinet last week has prompted concerns and criticism from the industrial sector that measures stipulated by the bill may lead to increased burdens on business.

The bill passed by the Cabinet on Friday stipulates measures to deal with global warming, notably a midterm target to cut greenhouse gas emissions by 25 percent from 1990 levels by 2020.

Nine industry organizations, including the Japan Iron and Steel Federation and the Petroleum Association of Japan, issued a joint statement opposing the bill, which said: “We have been opposed to the stipulation of mid- and long-term reductions targets or other individual measures. The Cabinet approval of the basic bill is extremely disappointing.” Masamitsu Sakurai, chairman of the Japan Association of Corporate Executives (Keizai Doyukai), also said in a statement, “The government has failed to provide sufficient explanation about the merits and burdens on the economy and the lives of the public.”

The industrial sector has been intensifying its opposition to the bill because the huge emissions cuts will require companies to scale back industrial activities, which will result in declined earning capacities.

The government has put forth three measures as pillars of a package to tackle global warming: an emissions trading scheme; a new environmental tax on oil and other fossil fuels; and a system under which power companies purchase electricity generated by renewable energy sources at fixed prices……

According to the Japan Business Federation (Nippon Keidanren), the country’s industrial sector emitted about 454 million tons of carbon dioxide in fiscal 2008, a decrease of 10.5 percent from fiscal 1990, partly due to the economic downturn resulting from the global financial crisis. Despite those large cuts in CO2 emissions, the reduction amount is far from the 25 percent goal of the basic climate bill, meaning companies would be required to bear considerable burdens to achieve the target.

Meanwhile, criticism has been leveled against the discussion processes for the bill. As ministers and senior vice ministers from relevant ministries have discussed the bill behind closed doors in principle, there have been few opportunities for industrial circles to state their opinions.

Shoichi Shirahaze and Masahiro Takeishi