Coal delivered to Japan's steel mills in 2024 carried more than four times the methane of the country's entire reported energy sector | Ember

Coal delivered to Japan’s steel mills in 2024 carried more than four times the methane of the country’s entire reported energy sector

1 Oct 2026

Japan has already built the model for gas. Through the Coalition for LNG Emissions Abatement toward Net-zero (CLEAN) initiative, Japanese buyers, through their existing contracts, simply ask their LNG suppliers to disclose methane emissions from extraction. The Japan Organisation for Metals and Energy Security (JOGMEC) aggregates the results. Project-level disclosure rose from 35% to 64% in two reporting cycles without the need for regulations or a new institution. The same trading houses sit at the centre of Japan’s coal supply chain, and JOGMEC already convenes the process – yet nothing equivalent has been asked of coal.

“The ‘metallurgical’ label decides what gets reported, but it does not decide what leaves the mine. Japan has already built, through CLEAN, the buyer-led architecture it needs, and can extend it across the region’s coal and gas supply chains. If Japan leads, East Asia helps write the rules; if it waits, rules will be written elsewhere,” said Yu-Ting Chang, coal mine methane analyst at Ember.

The ‘metallurgical’ label decides what gets reported, but it does not decide what leaves the mine. Japan has already built, through CLEAN, the buyer-led architecture it needs, and can extend it across the region’s coal and gas supply chains. If Japan leads, East Asia helps write the rules; if it waits, rules will be written elsewhere.

Yu-Ting Chang
‍
Coal mine methane analyst, Ember

Improving methane management in the steel value chain is one of the most effective climate actions this decade and critical to a resilient industrial transition. Investors, including Fidelity International, representing US$9.85 trillion in assets under management, recognise methane from metallurgical coal as a material consideration for the steel value chain. Japan has an opportunity to lead on enabling stronger mine-level measurement, verification and disclosure within its supply chains and support practical methane abatement.

Sue Lyn Stubbs
‍
Associate Director, Sustainable Investing at Fidelity International

The report highlights that Japan’s window to move first is closing. The European Union (EU) will set its methane rules for coking coal mines by 5 August 2027, and from 2030 imported fuels must meet a maximum methane intensity to enter the EU market. From fiscal year 2028, Japan’s Green Transformation (GX) Surcharge will price the carbon in imported coal but not the methane emitted during mining. Six blast-furnace relining decisions fall between 2026 and 2030, each committing a furnace to another 20-year campaign and fixing coking coal demand into the 2040s.

“Improving methane management in the steel value chain is one of the most effective climate actions this decade and critical to a resilient industrial transition. Investors, including Fidelity International, representing US$9.85 trillion in assets under management, recognise methane from metallurgical coal as a material consideration for the steel value chain. Japan has an opportunity to lead on enabling stronger mine-level measurement, verification and disclosure within its supply chains and support practical methane abatement,” said Sue Lyn Stubbs, Associate Director, Sustainable Investing at Fidelity International.

Ember recommends that Japan convene a first coal methane disclosure cycle modelled on CLEAN, with JOGMEC as the natural convening body; that steelmakers and trading houses fold coal mine methane into their Scope 3 reporting; and that financial institutions base coal finance restrictions on verified measurement rather than on a coal classification no two systems apply the same way.

About Ember

Ember is an independent energy think tank that aims to accelerate the clean energy transition with data and policy. It creates targeted data insights to advance policies that urgently shift the world to a clean, electrified energy future.

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