Japan Steel Industry Purchase Additional Emission Permits

Japanese steel industry contracted warming gas emission permits to 59 million tonnes for fiscal 2008-2012, which is 15 million tonnes higher than as of October 2007. Japanese makers are forced to increase the permits to comply the voluntary carbon dioxide emission reduction target while they keep high level output to meet strong demand increasing energy consumption.

Japanese steel industry targets 10% cut of CO2 emission in fiscal 2008-2012 compared with fiscal 1990 level. However, the emission and energy consumption increased in fiscal 2007 from fiscal 2006 and decreased only by 2.7% and 1.8% respectively from fiscal 1990 level.

Japanese raw steel output renewed record in fiscal 2007 for the first time in 34 years. The higher output increased the energy consumption along with higher output for high grade steel items. The steel industry’s energy consumption also increased when specific CO2 emission increased for electricity consumption due to stoppage of nuclear power plant of Tokyo Electric Power.

The purchase of emission permits cost 15-30 euro per tonne. Japanese steel industry tries to cover the own energy saving effort to clear voluntary targets through 150-300 billion yen of purchase for permits.