Japan is set to offer India a carbon offset scheme that would see Tokyo's environmental technology used by the rising Asian giant to help reduce its emissions, a report said.

The scheme would see Japanese firms earn carbon credits in return for helping developing countries reduce their greenhouse gas emissions, the Nikkei newspaper said in its Monday evening edition, adding India was a likely early partner.

The joint crediting mechanism (JCM) would encourage Japanese firms to participate by allowing them to promote technologies such as energy-efficient furnaces and air-conditioning systems, in developing countries with huge market potential such as India.

The Nikkei report comes as Japan struggles to further cut its greenhouse gas emissions, with businesses claiming many factories, vehicles and household appliances are already fitted with energy-efficient technologies.

It also comes as the latest energy white paper showed Japan is increasingly dependent on imported fossil fuels for power generation, with the public still unwilling to allow nuclear reactors to be switched back after the huge 2011 quake-tsunami disaster that crippled the Fukushima nuclear plant.

Under the mooted joint crediting mechanism (JCM), participating firms would be allowed to count the carbon credits as reductions in their own greenhouse gas emissions or could sell them to the government, the Nikkei said.

Japanese Prime Minister Shinzo Abe and his Indian counterpart Narendra Modi, who will visit Tokyo next month, will agree to speed up talks on the matter, the newspaper reported.

Japan has already signed JCM agreements with 11 developing countries, including Indonesia, Mongolia and Kenya.

Tokyo hopes carbon credits from the scheme could be used to come closer to its target of reducing Japan's greenhouse gas emissions by 3.8 percent against the 2005 level.

Japan, which had relied on nuclear for over a quarter of its power, jacked up imports of fossil fuels to keep the lights on after the quake-tsunami disaster forced a shutdown of the country's reactors.

About 88 percent of Japan's energy came from fossil fuels in the past fiscal year to March, according to the white paper released Tuesday.