Toyota Motor has started to buy green steel from Nippon Steel, JFE Steel, and Kobe Steel, a partnership that began late last year. Green steel is around 40% pricier than traditional steel, though government subsidies help manage these costs.

While specific purchase volumes remain private, the transition is significant for the automotive industry. Using electric furnaces instead of coal-fired blast furnaces can decrease carbon dioxide emissions by about 75%.

Toyota will receive official certificates for these reductions, joining peers such as Nissan and Isuzu in this transition. This move by the world’s top automaker may encourage other producers to adopt cleaner manufacturing technology.