Energy ministers from the Group of Eight (G8) industrial powers met ministers from China, India and South Korea on Sunday amid "serious concerns" that the global economy was under threat.


"If we leave this situation as it is, it could lead to a recession of the world economy," Akira Amari, Japan's energy minister, the host of the meeting, said in an opening address.

The G8 includes the UK, Canada, Italy, Japan, France, Germany, Russia and the US.

Preparatory talks


The talks in Aomori, a hub of Japan's nuclear energy industry 600km north of Tokyo, are one of a series of meetings leading up to the G8 summit on July 7-9 when climate change is expected to be a top issue.

Amari said that the 11 nations meeting in Aomori together consume 65 per cent of world energy while also releasing 65 per cent of the carbon dioxide emissions blamed for global warming.



"Climate change and energy issues are two sides of the same coin," Amari said. "It is indispensable to solve these problems together."

The 11-nation talks came a day after US and Asia's four largest powers in a separate round of talks voiced "serious concerns" about spiralling oil prices and called for more investment to keep markets well supplied.



They also supported a gradual reduction in politically sensitive fuel subsidies, although China and India made clear they would not act soon.



Nations participating in the talks are on Sunday expected to discuss an initiative for international co-operation on energy saving and developing clean energy, including setting up energy-saving plans by individual countries.
Seoul concession

South Korea meanwhile said on Sunday it would spend 10.5 trillion won ($10.2bn) over a year to help ease the financial burden on about 14 million people from the surge in oil prices.

Han Seung-soo, the prime minister, told a news conference the government planned to refund part of the additional money that low income earners spend on buying fuel.

"The super-high oil prices are affecting not only our country but the whole world. But the difficulty is especially severe with our country that produces not a single drop of oil but is the world's fifth-largest oil consumer," Han said.

South Korea's financial measures to alleviate the pain on oil users come as other Asian countries roll back oil subsidies which are proving too costly for governments to shoulder.

India and Malaysia raised fuel prices last week, joining a growing list of Asian governments no longer able to afford big subsidies and triggering protests.

Oil prices, which have soared five-fold since 2003, posted their highest ever one-day gain of $10.75 on Friday to close at a new record of $138.54 in New York after hawkish remarks by an Israeli official on oil producer Iran.

Agencies