G8 energy ministers say they are concerned about record high oil prices and that investment in energy diversification is part of the solution.
"The situation regarding energy prices is becoming extremely challenging," warned Akira Amari, Japan's trade and energy minister, said Sunday in Aomori, Japan. "If left unaddressed, it may well cause a recession in the global economy."
"We simply must increase the level and breadth of investment all around the world," U.S. Energy said Secretary Samuel Bodman.
"That means promoting aggressive investment in renewable energy and other alternative energies technologies, as well as the development of tradition hydrocarbon resources."
The energy ministers of Canada, the U.S., Russia Japan, Germany, France, Italy and Britain met, along with their colleagues from China, India and South Korea.
The 11 countries account for 65 per cent of the world's energy consumption.
A separate meeting on Saturday involving the U.S., Japan, China, India and South Korea warned of the menace posed to the global economy by high oil prices.
On Friday, oil's price closed at US$138.54 on the New York Mercantile Exchange -- an eight per cent gain in one day.
General Motors, the largest North American auto company, announced production cutbacks this past week triggered by plunging demand for gas-guzzling sport utility vehicles and pickup trucks.
While the world copes with high oil prices, it is also trying to develop ways to reduce the greenhouse gas emissions that are causing dangerous climate change.
In a statement, the G8 countries say they plan to launch 20 demonstration carbon capture and storage projects by 2010. The technology, still in its infancy, would mean no carbon would escape into the atmosphere from the burning of coal for electricity.
There appeared to be less unanimity on the role of nuclear power.
The joint statement had wording that called for assurances on the safety and security of nuclear materials used in electricity generation.
Some countries, such as Britain, are enthusiastic about expanding nuclear power production.
"I think we're on the verge of a new nuclear age and that will be a positive thing for the world," said John Hutton, British secretary of state for business enterprise and regulatory reform.
Germany's Jochen Homann, the country's economics minister, said his government is sticking to its plan to phase out nuclear power.
The G8, China, India and South Korea also established the International Partnership for Energy Efficiency Co-operation to promote best practices in conserving energy.
The countries would like to see more oil produced, but global production has been flat for three years even as demand and the price have both increased.
An OPEC official has said no decision on output will be taken until the group of oil-exporting countries meets in Vienna on Sept. 9.
With files from The Associated Press
