Japan plans $10 billion aid to fight global warming

High rise buildings are seen against a smoggy sky at sunset in Tokyo January 31, 2007. Japan plans to set aside about $10 billion over the next five years to help countries such as China and Indonesia fight global warming, a newspaper reported on Thursday.

TOKYO (Reuters) - Japan plans to set aside about $10 billion over the next five years to help countries such as China and Indonesia fight global warming, a newspaper reported on Thursday.

Japan's top government spokesman, Nobutaka Machimura, confirmed to reporters that Tokyo planned to launch an aid program but said it had yet to work out details.

The aid would be focused on measures to cut greenhouse gas emissions, ease the effects of disasters caused by global warming and promote the use of alternative energy sources, the Nikkei business daily said.

The aid would come in the form of grants or low-interest loans, it said.

Japan would help improve the efficiency of China's ageing coal-fired power plants and money would also be used to assist developing countries to gather meteorological data to help them prevent natural disasters, the Nikkei said.

It said Japan was expected to formally agree to provide Indonesia with aid in March and would also help Tuvalu, a low-lying Pacific country that has already suffered from rising seas and storm surges linked to climate change.

(Reporting by Teruaki Ueno; Editing by Sanjeev Miglani and Rodney Joyce)