Japan says 15-25 percent emissions cut possible: paper

TOKYO (Reuters) - Japan's environment minister said setting a target to cut greenhouse gas emissions by 15 percent by 2020 from 1990 levels was one option for the country, a newspaper reported on Tuesday.

Environment Minister Tetsuo Saito also told the Asahi newspaper in an interview that cutting emissions by 25 percent was achievable if emissions credits were purchased from abroad.

Prime Minister Taro Aso is expected to finalize Japan's official target on midterm emissions cuts by mid-June, ahead of a U.N. conference in December that is meant to forge a new treaty to replace the Kyoto Protocol.

Japan, the world's fifth-biggest emitter, is keen to carve out a role for itself as a leader on environmental issues, but the business community is nervous about setting stringent targets before any signs that growing economies such as China and India are ready to agree to emissions cuts.

Many Japanese companies are also reluctant to go beyond their current efforts focused on energy conservation while the world's second-largest economy struggles in its deepest recession on record.

The European Union has promised to cut emissions 20 percent by 2020, which includes its purchases of emissions credits from abroad, and by 30 percent if other rich nations follow suit.

Under the Kyoto pact, which comprises rich nations except the United States, Japan's goal is to cut emissions by 6 percent from 1990 levels over the 2008-2012 period. But its emissions hit a record high in the year to March 2008, putting its Kyoto target in doubt.

"If we, the current generation, stop making efforts, our children and grandchildren will have to pay the cost," Environment Minister Tetsuo Saito said in the interview with the Asahi daily.

SIX OPTIONS

The Japanese government has proposed six target options ranging from plus 4 percent to minus 25 percent as a way to promote debate on the issue.

A recent opinion survey by the government found that a midterm cut of 7 percent was the most popular option with the public.

But the survey has been criticized for not providing enough information on the costs needed to shift Japan to a low-carbon one and for not explaining clearly enough the cost of inaction or outlining new demand for green products and jobs.

Prime Minister Aso said on Sunday the survey was one of several factors he would consider when making deciding on Japan's target level.

(Reporting by Isabel Reynolds and Risa Maeda)