Fukuda said climate change, along with rising oil and food prices, will be a major topic at the annual G-8 summit, which will be held on the northern Japan island of Hokkaido in July. But he suggested emissions targets will not be set there.

"Agreeing on a midterm target is the core challenge of U.N. negotiations that will take place until 2009," Fukuda said. "The G-8 is not a forum to make such an agreement."

Fukuda made the comments during a meeting with leaders of major news organizations in a "media summit" ahead of the main G-8 event.

Fukuda said the G-8 leaders hope to "come up with some kind of a message" on climate change, and oil and food prices. But he said the leaders should focus on paving the way for a consensus so that decisions can be made later.

"I hope it will be one step toward setting a decision," he said of the summit. "The G-8 should be one step in the process. The G-8 is a very important part of that process."

Fukuda's caution on the midterm target issue reflects continued disarray among the developed nations about how to reduce emissions, and by how much.

Japan is struggling to meet obligations under the Kyoto global warming pact to cut emissions of greenhouse gases by 6 per cent below 1990 levels by 2012.

Its carbon dioxide emissions have been rising slightly in recent years and are expected to peak soon. But Fukuda said earlier this month that a reduction of 14 per cent from current levels is possible by Japan over the next 12 years.

European nations support a U.N. scientific finding that emissions cuts of between 25 per cent to 40 per cent by 2020 are needed to stop global temperatures from rising so high they trigger widespread environmental damage.

The United States, which has refused to set similar targets, considers such cuts beyond reach. Developing nations, meanwhile, are clamoring for commitments by rich countries before they discuss what poorer countries should do.

Fukuda has said Japan would use a broad range of strategies to reduce its emissions, including investment in new technologies, stiff construction standards to create energy efficient buildings, an array of tax incentives and a public awareness campaign.

"We need to move toward a low carbon society," he said on Tuesday. "To do that, we need reforms."

Fukuda spoke in a joint interview with leaders of major news organizations from the G-8 countries, which are Japan, the United States, France, Italy, Britain, Russia, Germany and Canada. All of the countries but Canada were represented.

After Fukuda's meeting Tuesday, Japan's Kyodo News was to host a summit-style meeting of the media leaders on Wednesday.

On other topics, Fukuda said he was closely watching the U.S. presidential race between candidates Barack Obama and John McCain.

"Mr. Obama is a young man so perhaps I can give him advice, but Mr. McCain is about my age so I don't know if I can speak my mind."

Fukuda said that whoever wins, the impact will be felt around the world.

"The responsibility for the U.S. leader to the entire world is very weighty,'' he said.

On domestic issues, he said increasing taxes is not an option for Japan, and that reforms aimed at expanding the job market would be a better option toward keeping the country's slow but firm economic growth on track.

He also said Japan is concerned by the growth of China's military, and said Tokyo wants Beijing to show more transparency on its military budget.