The Japanese Ministry of Trade and Industry (MITI) plans to ask electric power utilities to offer favourable treatment to companies selling power generated by plants that emit lower levels of carbon dioxide (CO2).

The ministry is asking utilities to restrict tenders for future generating capacity to thermal plants which emit less CO2, such as those fired with liquefied natural gas. Coal-fired power plants accounted for 46 per cent of capacity from successful bidders from private sector for tenders to supply power to the main utilities during the 1996-97 financial year.