Japanese Environment Ministry will setup a trade market in fiscal 2005 for transactions of greenhouse gas emissions among companies to attain Japan's emissions cut obligation under the 1997 Kyoto Protocol.

According to a preliminary report released by the ministry on Tuesday, the government will begin to publicly ask companies to participate in early next year, with several dozen companies likely taking part.

The ministry will request several billions of yen in subsidies under the fiscal 2005 budget to help with Japan's efforts to implement the Kyoto Protocol to curb global warming.

Participating companies will voluntarily join the new program with self-set emissions targets, which will be examined by a third-party body.

The ministry will grant the companies subsidies to buy equipment needed to attain the goals. If they fail to clear the targets within two years, the companies must return the subsidies to the ministry.

Britain has already introduced an emissions trade market, and the European Union will begin emissions rights transactions next January among companies within its member states.

Signatories of the Kyoto Protocol agreed to reduce greenhouse-gas emissions by 5.2 percent from 1990 levels between 2008 and 2012.

The pact requires Japan to cut such emissions during the periodby 6 percent, the United States by 7 percent, and the European Union by 8 percent.

The protocol goes into force 90 days after it is ratified by 55countries representing 55 percent of industrialized countries' carbon dioxide emissions in 1990.

Source: Xinhua