Japanese business cautious about PM's climate plan

0 Comments | AFP, June, 2008

TOKYO (AFP) — Japan's steelmakers went on the offensive Tuesday against a new plan by Prime Minister Yasuo Fukuda to force industry to cut greenhouse gas emissions, saying it would hurt the economy.

Defying parts of the business community, Fukuda on Monday announced a so-called "cap-and-trade" system that restricts emissions blamed for global warming and provides an economic incentive by trading emissions credits.

Fukuda said the system will go into experimental use this autumn as part of a long-term goal for Japan to slash carbon emissions by 60 to 80 percent by 2050 from current levels.

The Japan Business Federation, the country's powerful lobby that represents major companies, was cautious on Fukuda's plan.

"Regarding a carbon trading market, we...