Backed by its status as the world's largest single aid donor, Japan is anxious to have dibs on China as a partner in a scheme linking development aid to achieving required cuts in greenhouse gas emissions.
According to government sources, Japan and China have agreed to launch talks at the senior working level to discuss cooperation in implementing the so-called clean development mechanism.
Under the CDM, industrialized countries can earn credits if they provide financial assistance for projects aimed at reducing the emissions of greenhouse gases in developing countries. The credits can be applied to the industrialized country's reduction target.