Japan should not introduce new environmental regulations for three years and instead rely on voluntary efforts by the private and business sectors to fight global warming, a government advisory panel said Thursday.

The Central Environment Council, an advisory panel to the environment minister, said in a report that the government should deal with global warming with existing measures from 2002 to 2004 and then consider further steps after reviewing their effects.

The report focuses on domestic efforts for Japan's ratification of the 1997 Kyoto Protocol on curbing global warming.

It says says that Japan needs an action plan to meet pledged greenhouse gas reduction pledges by 2010 and review progress at three year intervals to determine whether stiffer measures are warranted, according to the report.

The report outlines future climate change policy, including a "step-by-step approach" that will check progress in cutting greenhouse gases in 2004 and 2007 en route to achieving cuts of 6 percent of 1990 emission levels by 2010 in line with the Kyoto Protocol.

The paper also calls on corporations to measure and publicize greenhouse gas emissions figures while touching on the need for a neutral third party organization to evaluate company efforts.

The report was met with a sigh of relief from industry and criticism from nongovernmental groups and some in the media.

While it does call on the Japan Federation of Economic Organizations (Keidanren) to make voluntary efforts more transparent, it does not obligate the association to take any action.

"It (the report) does not come with any strong restrictions (for industry) . . . or a carbon tax. I think it largely incorporates our (Keidanren) point of view," said Teruaki Masumoto chairman of Keidanren's the Subcommittee on the Global Environment.

Keidanren is deliberating how to boost transparency and in its voluntary reduction plan by having an objective entity review it and should have something concrete in March, he added.

At the other end of the spectrum, the nongovernmental organization Kiko Network slammed the committee's recommendations and demanded that the new plan be concocted in the open, unlike its predecessor, the Outline for Global Warming Prevention which was decided behind closed doors by bureaucrats.

"Despite rapidly rising emissions and the need for immediate action, measures during the first stage (2202 - 2004) of this "step-by-step approach" are very inadequate . . . and there is nothing concrete written about what will happen from step two," said a statement released by the NGO.

Unlike the current outline, the new action plan for meeting Kyoto Protocol commitments will have a legal basis. It will be written into a climate change prevention law to be revised this Diet session.

The plan and legislation should be floated by around early March, ministry officials said.

This plan will contain numerical targets and be the major yardstick used to measure whether Japan is on track to meet emission reduction targets or more severe policies are required.

The proposed plan will specify:

- expected reductions by sector

- the role of government, industry and citizens in fighting climate change

- estimated reductions by policy

- government policies to promote introduction of new climate change measures

- a timeline for introducing new policies

In addition, ministry officials announced that a review committee will be established to debate how to handle projects undertaken in developing countries - under the Clean Development Mechanism clause of the protocol - to earn carbon credits Johannesburg from late August.

In addition, ministry officials announced that a review committee will be established to debate how to handle projects undertaken in developing countries - under the Clean Development Mechanism clause of the protocol - to earn carbon credits Johannesburg from late August.

As of 1999, greenhouse gas emissions had jumped 6.8 percent above 1990 levels with carbon dioxide released 9 percent above figures for 1990. Overall emissions are forcasted to top 1990 figures by eight percent in 2010, meaning Japan would have to realize a cut of 14 percent of base year levels.