Japan has recently announced it will provide an incentive for green steel. The Ministry of Economy, Trade and Industry (METI) has launched a 50,000 yen subsidy for clean energy vehicles (CEVs) manufactured by low carbon emission steel. 

Last year they also launched up to 850,000 yen consumer subsidies for the purchase of an electric vehicle (EV) and up to 550,000 yen for a hybrid electric vehicle.

Japan is the world's third-largest steel and vehicle producer. Its steel industry manufactures about 85 million metric tons a year. Among these most are from coal-based blast furnaces, which result in more pollution than that in the US, the EU, and China's steel industries, all of which have the capacity of electric arc furnaces far more than in Japan.

According to the data of Transition Asia, which is a non-profit clean energy think tank, it showed the cost of green steel in Japan and South Korea is slightly higher than that in China but lower than in the EU. 

Costs differ across countries, but research indicates that even a modest subsidy can effectively encourage steel producers to manufacture green steel, motivate car makers to adopt it, and inspire consumers to purchase the final product.