Japan's tax commission will propose the introduction of an environment tax from October 2011 to help curb greenhouse gas emissions.
More difficulties may arise in the second week of the Cancun climate change negotiations, Martin Khor, executive director of South Center, warned on Saturday.
Europe was willing to commit to a second period of the Kyoto Protocol but it had to be a balanced deal, European Union officials said in Cancun Friday.
The European Union is still hesitating over whether to extend the Kyoto Protocol after its first commitment period expires in 2012, while environmentalists are trying to save the only global carbon reduction regime.
Protesters voiced their concerns for the fate of the Kyoto Protocol at the United Nations climate change conference.
Former French prime minister Jean-Pierre Raffarin said Thursday developed countries should share their experience and technologies in reducing greenhouse gas emissions with developing countries.
Japan won the "Fossil of the Day" award on Tuesday on the second day of the United Nations Climate Change Conference in Cancun, Mexico.
Delegates from both developing and developed nations have urged the United States to show sincerity and contribute more to the progress of climate negotiations at the UN's climate change conference here Wednesday.
Japan was strongly criticized for its attempt to kill the Kyoto Protocol, the only existing mechanism that binds industrialized countries to limit their carbon emissions.
The United States' leadership in science and technology is at risk, said US Secretary of Energy Steven Chu on Monday, who added that the US should learn from China's success in clean energy innovations.
It is crucial for the international community to prove that Cancun can deliver progress, European Commissioner for Climate Action Connie Hedegaard said on Monday.
Australia on Monday moved closer to setting up a carbon offsets market that would reward steps by farmers, foresters and landholders to reduce greenhouse gas emissions.