Toyota Motor (TYO:7203) has started procuring low-emissions "green" steel from Nippon Steel (TYO:5401), JFE Steel and Kobe Steel (TYO:5406), a move expected to speed the steel sector's shift toward lower-carbon production, Nikkei reported Tuesday.

The automaker began purchases by the end of last year and will receive certification for carbon dioxide reductions from steelmaking, which it can apply to its vehicle emissions footprint, according to the report.

Green steel made with electric furnaces can cut CO2 emissions by about 75% versus blast furnaces, though it costs about 40% more. Government subsidies help offset the higher cost. The volume Toyota will buy has not been disclosed, the report said.

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