TOKYO (Reuters), December 31, 2007 - Japan will accept numerical targets to cut global warming emissions in a new climate change pact, reversing its stance which came under fire at this month's U.N.-led talks over the deal, a newspaper reported on Sunday.

The Mainichi Shimbun said Japan plans to present a proposal to divide nations into not only developed and developing countries, but also into a third group, that would include China and India, and set targets for each group.

Japan will also set up a five-year, $10 billion "finance mechanism" to back up developing nations' efforts to tackle global warming with low-interest loans, the paper said.

At talks in Bali this month, nations agreed on a two-year "roadmap" to adopt a new treaty to succeed the Kyoto Protocol, the main existing plan for combating global warming, beyond 2012.

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