Nippon Steel Says Mandatory CO2 Caps Not Effective
Date: 13-Dec-07
Country: JAPAN
Author: Yuko Inoue
Akio Mimura, president of the world's second-biggest steelmaker, said transferring advanced environmental technology to polluting countries is the key to fighting climate change, adding that Japan is ready to share its highly efficient know-how.
"I don't quite understand how the cap-and-trade system works to cut global gas emissions," Mimura told the Japan National Press Club. The system sets an overall limit on carbon emissions by big businesses.
"Energy-efficient companies and their products should be able to expand sales and shares in the environment-conscious market, wiping out inefficient companies and technologies," he said. "This is how a true free-market mechanism should work."
Steel and electric power companies in resource-poor Japan are already highly energy-efficient.
US, Russian and some Chinese steel companies are about 20 to 25 percent less energy-efficient than their Japanese counterparts in making steel, data released by Nippon Steel showed.
"There is a huge potential to reduce carbon dioxide gas emissions if technologies to recover heat generated during the steel-making process, commonly used in Japan, are globally transferred," Mimura said.
The transfer of such advanced energy-saving technologies would help cut 300 million tonnes of carbon dioxide a year, according to a survey by the Asia-Pacific Partnership on Clean Development and Climate, an organisation of seven Asian countries studying cooperation in energy technology.
Global steelmakers, including Nippon Steel, are increasing output to cope with strong demand in China and other emerging markets.
Mimura said Nippon Steel is considering expanding the capacity of two domestic blast furnaces the next time they are shut for repairs.
Nippon Steel has been gradually raising capacity at home by easing production bottlenecks and expanding furnaces during repairs as it aims to narrow the gap with industry giant ArcelorMittal
In Brazil, the company is expected to take a stake in a new integrated steel mill planned by its Brazilian affiliate Usiminas
(Editing by Mike Miller)
