Jan. 3 (Bloomberg) -- Japan and the U.K. agreed on a proposal to cut greenhouse gases by developed countries by as much as 80 percent and will submit the plan at the Group of Eight summit this year, the Tokyo Shimbun reported.

The governments exchanged a memorandum of understanding based on a study which found greenhouse gases may be cut by between 60 and 80 percent by 2050 through the efficient use of forests and energy resources, the newspaper said, without saying where it obtained the information. The governments will submit the proposal at the G8 summit in Japan in July.

The proposal recommends establishing an international carbon-trading market to promote a reduction in carbon dioxide emissions and a product labeling system to encourage purchases of products that emit less CO2. The Japanese government plans to propose legislation this year requiring such labeling for home electrical appliances, the newspaper said in a separate report.

The greenhouse gas reduction proposal will promote acceptance of numerical cuts in greenhouse gases, including reductions of as much as 20 percent by developing nations such as China and India, the newspaper reported.

To contact the reporter on this story: Finbarr Flynn in Tokyo at fflynn3@bloomberg.net

Last Updated: January 2, 2008 22:45 EST