Japan Unveils US$10bn Climate Change Plan

Japanese Prime Minister Yasuo Fukuda has unveiled a five-year, US$10bn fund to combat global warming in developing countries, part of a move towards developing renewable energy sources.

The country also aims to create a new multilateral fund with the US and the UK called the Cool Earth Partnership to mitigate changes in the earth's climate as a result of global warming, Fukuda told leaders at the World Economic Forum Annual Meeting 2008 last week.

The fund will start disbursing funds this year, setting aside up to US$8bn for assistance in climate change mitigation, and up to US$2bn for grants, aid and technical assistance for countries switching to clean energy.

As the chair of the G8 Summit, Fukuda says he will work with major emitters to set a "fair and equitable emissions target" based on a bottom-up approach that looks at energy efficiency by sector.

Japan also announced this week it is to embark on a five-year plan this year to harness a new form of energy using unused wood biomass to produce auto fuels and other industrial products currently made from imported petrol.

Japan, where two-thirds of the country is covered by forests, can supply elements of alternative fuels made from wood-origin ethanol.

Japan's Ministry of Agriculture announced it will set aside JPY1.2bn (US$11.2m) in the next fiscal year's budget to support a few private projects to develop an alternative processing system to that of the petrochemical industry, writes Reuters.

About JPY1bn of the total subsidy will be given to projects using wood for cellulosic ethanol technology, the ministry says.

By Ozge Ibrahim