KYOTO, May 6 (Xinhua) -- Japanese Finance Minister Koji Omi announced on Sunday morning that the Japanese government will contribute up to 100 million U.S. dollars to set up two funds aimed at promoting cleaner energy in the Asia-Pacific region and combating world climate change.

    Omi, who is also chairman of the Board of Governors of the Asian Development Bank (ADB), made the announcement at the opening of the board's 40th annual meeting, confirming the news which has been circulating since late last month.

    "Japan will establish two funds in cooperation with the ADB, namely, the Asian Clean Energy Fund and the Investment Climate Facilitation Fund," Omi said, adding that his government expects that the funds will help ensure sustainable economic development in the region.

    According to Omi, the two new funds will be set up under Japan's initiative called "Enhanced Sustainable Development for Asia," which will support the efforts by developing countries in the region to overcome challenges of tackling climate change through energy efficiency.

    "More efficient use of energy and the reduction of greenhouse gas emissions in Asia are necessary for achieving sustainable growth not only in the region, but also in the world," he said.

    The finance minister also pledged up to 2 billion dollars of yen-loans on environmental projects over five years through the Japan Bank for International Cooperation under a implementation plan with the ADB.

    To better protect the environment, Omi stressed the necessity of establishing "a new framework with a larger membership beyond the Kyoto Protocol," which covers only 30 percent of total current CO2 emissions in the world.

    It is important to create a new, practical and effective framework in which all countries take part, he added.¡¡