Japan signals plans for G7 climate fund

A Japanese Official has confirmed that Japan, Britain and the US are to propose a special clean technology transfer fund this weekend's Tokyo meeting of finance ministers from the Group of Seven industrialised nations.

According to Thomson reports the unnamed official told reporters that the fund would be on the agenda for the upcoming conference.

"Japan, Britain and the US are currently examining a plan to establish a multilateral clean technology fund in co-operation with the World Bank," he said. "The three countries will explain the content of their current discussions on the fund, and we'll see how the rest of the Group of Seven members react to it."

If it gains support the fund would likely be used to promote development and adoption of low carbon technologies in developing economies such as India and China.

The news comes a week after Japanese prime minister Yasuo Fukuda outlined plans for a new $10bn five-year "Cool Earth Partnership" fund designed to invest $8bn in climate change mitigation and $2bn in helping developing economies switch to clean energy technologies. "We will extend the hand of assistance to developing countries suffering severe adverse impacts as a result of climate change," Fukuda said.