Highly alarmed by high oil prices and the red-hot global rush for energy resources led by China and India, Japan's Ministry of Economy, Trade and Industry (METI) adopted last May a new strategy aimed at ensuring stable energy-resource supplies in the medium and long terms.

The New National Energy Strategy calls for, among other things, securing energy resources abroad through the fostering of more powerful domestic energy companies, with the ultimate goal of boosting the ratio of Hinomaru oil to 40% by 2030. It also calls for strengthening relations with resource-rich countries through such measures as official development assistance and free-trade agreements.

In line with the METI-adopted strategy, Prime Minister Shinzo Abe's cabinet approved a new basic energy plan early last month as a guideline for energy-policy implementation over the next decade. The new plan, which replaced the old one approved in 2003, calls for, among other things, greater government involvement in efforts to secure energy interests abroad and the promotion of nuclear power generation.

On Sunday, the government-affiliated Nippon Export and Investment Insurance (NEXI) began to accept applications for a new type of trade and investment insurance scheme to cover possible losses incurred in overseas energy-development projects by Japanese corporations due to natural disasters, accidents and political or terrorist acts.

The government will act as the reinsurer for the new product, dubbed "comprehensive natural resources and energy insurance". With its involvement in the new program, the government hopes to protect domestic companies from being unilaterally stripped of their interests by host countries. The combined maximum amount of undertakings has been set at 300 billion yen.

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