Margaret Beckett, taking part in an environmental forum in Tokyo, said that Britain and Japan, home of the Kyoto Protocol, "can together take the lead in the transition to a low-carbon energy efficient world economy."

"In doing that we will not only help the world overcome the climate threat, it's also the only way for us to remain competitive," she said.

Businesses "who move into that market first -- first to design, first to set up policy standards, first to build a brand -- are the ones who will make the money," she added.

Beckett was speaking after a six-day visit to China, which is expected soon to overtake the United States as the world's biggest emitter of carbon dioxide and other gases blamed for global warming.

The United States and Australia have resisted signing the Kyoto Protocol, the landmark treaty on reducing emissions, saying it is unfair that the pact does not include China, India and other emerging economies.

China is the largest commercial partner of Japan, whose economy is undergoing record expansion after recession in the 1990s.

"Japanese businesses have particular concerns over economic competition with China," Beckett said, adding that there was "much more to lose if China does not make the transition to a low-carbon economy."

"We all have interests in supporting China in meeting its targets on energy efficiency. An investment in China's energy efficiency is an investment in our own energy security," she said.

A UN report last month warned that climate change is set to inflict damage in every continent, hitting poor countries hardest and threatening nearly a third of the world's species with extinction.

All rights reserved. � 2005 Agence France-Presse. Sections of the information displayed on this page (dispatches, photographs, logos) are protected by intellectual property rights owned by Agence France-Presse. As a consequence, you may not copy, reproduce, modify, transmit, publish, display or in any way commercially exploit any of the content of this section without the prior written consent of Agence France-Presse.