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ASEAN plans eco-pact

ASEAN leaders plan an energy security pact for renewable energy and reducing greenhouse gas emissions.

The 10-member Association of South East Asian Nations, along with China, Japan, South Korea, India, Australia and New Zealand, also eye trade liberalization in financial services, as well as mapping out bird flu prevention at their summit on the island of Cebu.

The 16 countries represent half the world's population and a fifth of global trade, while ASEAN energy demand alone is expected to more than double by 2030.

A draft of the energy security agreement, approved last week, offered no regional targets on

emissions but called for investment in ethanol and biodiesel plants.

A growing carbon emission trading market is worth around $10 billion and ASEAN has asked Japan to get access.

Host President Gloria Macapagal Arroyo welcomed participants, saying a number of key issues would be addressed.

"It's vitally important at this time in world events that ASEAN is bringing so many nations and leaders together to discuss peace, security, social justice and economic growth."

On the sidelines, China and Japan took a big step in mending ties Sunday, announcing that Premier Wen Jiabao would visit Japan in April, the first such visit in nearly 7 years.

In the first trilateral meeting in three years, South Korea joined Tokyo and Beijing in agreeing to improve relations by promoting trade and energy security.

Both Japan and China are vying to influence ASEAN as it becomes a more integrated political and economic bloc.

Beijing and ASEAN agreed to slash barriers on services such as telecoms and transport, while Tokyo will support Southeast Asian maritime security.

Dan Sloan reporting.