G-8 leaders discuss oil, food prices, world economy, global warming

By KUNA,

Toyako, Japan : Leaders of the Group of Eight (G-8) industrialized nations began substantial talks here on Tuesday, aiming to find common ground on surging oil and food prices, the world economic slowdown, and global warming. The second day of the G-8 summit followed outreach dialogues with African nations on the previous day at Lake Toya resort in in northern Japan.


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Faced with record-high crude prices, the leaders of Britain, Canada, France, Germany, Italy, Japan, Russia, and the US are expected to stress the need to monitor the flow of speculative money into crude oil futures markets in a bid to improve transparency in trading activities, and to urge both oil producers and consumers to make utmost efforts to calm markets.

In addition, they will discuss measures to expand investments in extraction and refining capacity, promote energy efficiency, and develop new technologies and alternative energy sources, such as second-generation biofuels made from rice straw and other inedible plant matter.

The leading economic powers will also discuss ways to create a global network of food stockpiles to better cope with future food crises. In addition, the group will call on food-producing countries to end restrictions on food exports to help stabilize global supply and demand.

Amid concerns over inflation due to soaring food and oil prices, the G-8 leaders will express deep concern about global economic prospects, noting that the world economy is facing uncertainties and downside risks.

A key focus of the summit is whether the G-8 leaders can set a long-term goal of slashing carbon dioxide emissions 50 percent from 1990 levels by 2050, which was agreed at last year’s summit in Germany.

Japan and European countries support the long-term goal, but the US takes a cautious stance about setting such a target, insisting that major emitters like China and India should be part of any reduction framework.

Japanese Prime Minister Yasuo Fukuda, who chairs the three-day summit, is hoping to achieve progress on finding a consensus on a new international framework beyond the 2012 expiration of the carbon-capping Kyoto Protocol.

They will also agree on a new initiative to expand the use of civil nuclear power to the mitigation of climate change and the enhancement of energy security. The G-8 is considering establishing a fund to invest in research and development of innovative technologies for the environment, with a target of around USD 10 billion per year.

The G-8 countries will affirm support for Africa to overcome the food crisis by helping improve agricultural productivity and attract more investment. Tuesday’s discussions will also cover global political issues such as the Middle East peace process and dossiers relating to Iran, North Korea, and Afghanistan.

This year’s summit brings together leaders from 22 nations, including China, India, and Brazil, the largest number in summit history.

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