The Kyoto Protocol, the landmark environmental treaty negotiated in Japan's ancient capital, mandates cuts in the gases blamed for global warming.

Japan is obligated to reduce emissions by an average of six percent between 2008 and 2012 compared with 1990 levels.

"It is extremely difficult to make progress" in meeting Japan's goals, said the panel of environmental and industry experts appointed by the government.

"It is necessary to strengthen and take new measures and policies to ensure the promised six-percent cut," said the report.

"In particular, measures must be strengthened drastically in the business and household sectors, which are both showing considerable growth in emissions," it said.

The panel also said it was politically unrealistic for the government to help meet its goals on reducing carbon emissions by a sharp increase in use of nuclear energy.

Last week the country's largest nuclear plant leaked a small amount of radiation after an earthquake, heightening fears in a country which already has vocal opposition to atomic projects.

The United States and Australia both boycott the Kyoto Protocol, saying it is unfair as it makes no demands of growing developing nations such as China and India.

Japan has tried to project itself as a leader in the fight against global warming and this summer unveiled an initiative to help developing countries cut greenhouse emissions.

But Japan's emissions rose eight percent in the financial year to March 2006, the last year for which figures were available, as the world's second largest economy enjoys a record expansion after recession in the 1990s.

The panel called on industry sectors that are not subject to government-set emissions-cuts targets -- such as "pachinko" pinball arcades, schools and hospitals -- to set voluntary goals.

It urged authorities to raise targets at food processing and chemical plants, as well as for automobiles and housing.

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