Japan finmin calls for new Kyoto Protocol framework

KYOTO, Japan, May 6 (Reuters) Japanese Finance Minister Koji Omi called for an overhaul of the 1997 Kyoto Protocol on reducing CO2 emissions today, to deal with the environmental impact of Asia's rapid economic development.

''It is important to go beyond the Kyoto Protocol to create a new, practical and effective framework in which all countries, including the United States, China and India, will participate,'' Omi said.

The Japanese government will contribute up to 100 million dollars to two new funds to be set up together with the Asian Development Bank to promote clean energy and improve the investment climate in Asia, he told the opening session of the ADB's annual meeting in Kyoto, western Japan.

Omi also said Japan would provide loans of up to 2 billion dollars over the next five years through the government-affiliated Japan Bank for International Cooperation to promote investment and address the issue of climate change.

''I expect this initiative will help ensure sustainable economic development in the region,'' he said.

Omi said the Kyoto Protocol covers only 30 percent of total current CO2 emissions worldwide, and the ratio is expected to fall as emissions from developing countries increase.

The ADB said on Friday it would spend at least 1 billion dollars on clean energy projects in 2008, as it seeks to strengthen its role in balancing economic development and environmental concerns in the region.

That would mark a rise of 10 percent or more from this year, when it is expected to invest 900 million dollars in such projects.

REUTERS RJ ND1002