InsideJapan News Network

Japan's government is set to decide this month about the introduction of a national carbon emissions trading system.

An official confirmed that a decision will be made before the end of 2011 despite reports that such a scheme had been rejected, reports Reuters.

The ruling Democratic Party recently announced that it would "carefully study" the impact on business of the introduction of a carbon cap and trading system as well as examining the success of similar schemes in other countries.

"We believe the government needs to take the party proposal seriously. So, we will take a very careful look at the issue," a cabinet office official said.

The party had promised during the election to set up the trading schemes for companies in a bid to met Japan's commitment to reduce greenhouse gas emissions by a quarter from 1990 levels by 2020.

Japan was a key party in the creation of the Kyoto Protocol aimed at reducing carbon emissions produced by industrialised nations.

Written by Mark Smith