As improved hybrid, clean-diesel, electric and other green powertrain technologies proliferate, manufacturers are investing in the next-generation cars we will drive in five, 10 or 15 years' time.

Japan will consider a scheme for trading greenhouse gas emissions, the government said on Friday, a week after a powerful business lobby and the trade ministry softened their strong opposition. In a report of new steps aimed at slashing its greenhouse gas emissions in line with the Kyoto protocol, the government also proposed deeper but voluntary cuts for industry, adding to existing measures such as preserving forests and purchasing emissions rights from abroad. The plan, revealed as Japan prepares to host a climate-focussed G8 summit of industrialised nations in July, will be opened for public comment before it is officially adopted by the end of March. A cap-and-trade system with mandatory emissions limits, long opposed by the Japan Business Federation, was mentioned in the plan as a topic for consideration in the near future, as were environmental taxes and the introduction of daylight saving time. Environment Minister Ichiro Kamoshita warned other cabinet ministers that they might later be asked to cooperate with further cuts, an official said. As the host of the conference that produced the Kyoto Protocol, Japan is anxious to improve its own emissions record, at present well adrift of its goal of an average 6 percent cut on 1990 levels between 2008 and 2012. That means slashing emissions to 1.186 billion tonnes a year of carbon dioxide equivalent, although Japan actually emitted an estimated 1.359 billion tonnes in the year that ended in March 2006. As it prepares to host G8 on the northern island of Hokkaido in July, Japan has been attempting to take a leading role in climate change, including by planning a major environmental conference ahead of the main summit, media reports have said. The top UN climate change official said earlier this month it would be a disadvantage if Japan were to stay out of an otherwise universal cap-and-trade system in the future. The business lobby's chairman, Fujio Mitarai, was reported this month as softening his opposition to cap-and-trade, while the trade ministry said it was seriously studying such an approach. (Reporting by Isabel Reynolds and Chisa Fujioka; Editing by Mike Miller) REUTERS NEWS SERVICE

Nippon Oil Corp said Friday it has received a carbon credit of around 4.49 million tons from the United Nations for its oil development project in Vietnam. The certified emission reduction credit, granted for the reduction of carbon dioxide emissions in the Rang Dong oil field in southern Vietnam, is the largest one-time CER credit to be approved by the Clean Development Mechanism Executive Board, Japan's largest oil distributor said.