Text of report in English by Japanese news agency Kyodo

Tokyo, 29 May: Japan and China opened a three-day forum in Tokyo on Monday [29 May] to pass on Japan's experience of improving its energy efficiency and conserving the environment to China, as energy demand of the emerging economy is expected to rise sharply with its rapid economic development.

In the forum, attended by some 800 government officials, business representatives and academics from the two countries, Japan and China signed a memorandum of understanding on deepening exchange and cooperation to promote China's energy-saving efforts.

At the outset of the meeting, Economy, Trade and Industry Minister Toshihiro Nikai said, "The remarkable economic growth in China is now leading the world economic expansion and environmental problems are expected to loom ahead as a major challenge in the country."

The minister said cooperation between Japan and China on the energy and environment sectors would benefit other countries as well.

He also stressed the significance of holding such an event amid strained bilateral political ties over such issues as Prime Minister Junichiro Koizumi's visits to the war-related Yasukuni Shrine and a row over gas exploration in the East China Sea. "I appreciate the bravery of participants in the forum despite difficult political situations," he said.

Visiting Chinese Commerce Minister Bo Xilai said China has set a goal of lowering energy consumption per unit of gross domestic product by 20 per cent by the end of 2010 compared with 2005 levels. "I expect this forum will form a basis for a win-win relationship between industries of the two countries," he said.

Environment Minister Yuriko Koike said Japan and China face common environmental problems such as yellow sand and acid rain, and called for bilateral cooperation in various areas.

She also introduced Japan's experience of tackling Minamata mercury-poisoning disease, which was officially recognized 50 years ago, and urged Beijing not to follow in the footsteps of the country by striving to prevent a tragedy caused by pollution.

In the morning session, the two countries signed five documents to promote energy cooperation.

They include Japan's pledge to accept several hundred Chinese officials for training on energy conservation at Japanese institutes over five years and the provision of 8,400 Japanese air conditioners with a high level of energy-saving functions to be used in Chinese offices.

Chinese Ambassador to Japan Wang Yi and representatives from leading Japanese companies such as Nippon Steel Corp., Sumitomo Metal Industries Ltd., JFE Steel Corp., Toyota Motor Corp. and Kyocera Corp. also attended the forum.

During the event co-sponsored by Japan's Ministry of Economy, Trade and Industry, and China's National Development and Reform Commission and Commerce Ministry, participants are holding discussions on each industrial sector such as steel, automobiles, cement and fuel cell.

The Chinese delegates will also travel to six areas in Japan on Tuesday and Wednesday to witness the country's efforts to promote energy efficiency and environmental conservation at such places as power plants and recycling facilities.

China, the world's second-largest energy consumer following the United States, accounted for 12 per cent of the world's total energy consumption in 2002 and the ratio is expected to reach 15 per cent in 2030, according to the International Energy Agency.

Compared with Japan, the country uses nine times as much energy to produce a GDP unit. The rapidly expanding Chinese economy is expected to face serious energy shortages and environmental deterioration in the course of its economic development.

After experiencing oil shocks in the 1970s, Japan has succeeded in improving its energy efficiency by 37 per cent over the past 30 years to claim the status of the world's most advanced energy- saving country.

According to the IEA, Japan consumed the smallest amount of primary energy to produce a GDP unit in 2005.