Japan's prime minister has announced plans to create a $10 billion fund to help emerging countries reduce emissions.

Yasuo Fukuda laid out the proposal, dubbed the Cool Earth Partnership, today at the World Economic Forum in Davos, Switzerland.

Fukuda also proposed setting a global target of a 30 percent improvement in energy efficiency by 2020.

"As the chair of the G8 Summit, I am resolved to take on the responsibility in working towards the establishment of a framework in which all major emitters participate as well as the setting of fair and equitable emissions target," said Fukuda.

The prime minister is hosting the Group of Eight leaders' summit in northern Japan in July.

Under the five-year fund, to be financed by the government and commercial enterprises, $8 billion will be set aside for climate change mitigation, with up to $2 billion going toward grants, aid and technical assistance for countries switching to renewable energy.

Fukuda's also announced plans to invest $30 billion in research and development in the environment and energy sectors over the next five years.

Last year, Japan proposed the Cool Earth 50 initiative, calling for a halving of global greenhouse gas emissions by 2050.

"This is a very challenging task, and it will require a tremendous investment in technology," he said.

Fukuda did not detail any planned targets on reducing emissions in his home country.

The announcement comes less than a week after the Abu Dhabi emirate announced a $15 billion commitment to clean technology (see Cleantech.com's Abu Dhabi, the next cleantech hub?), and earlier in the day that U.S. President George Bush is to announce a $2 billion clean energy technology fund in his annual State of The Union speech.