International climate organization SteelWatch has condemned Nippon Steel and JFE Steel’s joint investment of USD $1.08 billion in Whitehaven Coal’s Blackwater coal mine in Australia, calling it a significant setback for global climate efforts. The investment has drawn sharp criticism from environmental advocates, particularly in light of Nippon Steel’s stated goal of becoming a zero-emissions steel company by 2050.
“Nippon Steel wants us to believe that it will be a zero-emissions steel company by 2050, but it is relying on unworkable technology and expanding its use of coal, claiming it needs ‘high-quality coal,'” said Toko Tomita, SteelWatch’s Campaigns Director. “Choosing marginally less-polluting coal over transforming its business to be fossil-free is a poor excuse for a company refusing to do the right thing and decarbonize properly.”
Tomita further warned that Nippon Steel’s continued reliance on coal poses a serious threat to global efforts to combat climate change, especially as the company seeks to become the world’s third-largest steelmaker with its potential acquisition of U.S. Steel. “Nippon Steel’s appetite for coal should alarm everyone committed to keeping average global temperatures to 1.5°C. While the world races to decarbonize, Nippon Steel is racing to dig up more coal,” she added.
The investment has raised concerns among environmentalists and climate activists, who argue that such moves are incompatible with the urgent need to reduce carbon emissions and transition to sustainable energy sources.
