The United States decision to withdraw from the Paris climate accord could stall domestic efforts to cut greenhouse gas emissions by encouraging business lobbies to oppose new restrictions aimed at fighting global warming.
Discussions on a policy known as carbon pricing — putting a price on emissions through emissions trading and taxes — may lose momentum, analysts say. The Environment Ministry sees the policy as effective and had recently set up a panel to explore the issue.
But the Japan Business Federation (Keidanren), the nation's biggest business lobby, is strongly opposed to the policy, saying carbon pricing has no effect in countering global warming and will impose a burden on businesses.