HUA HIN, Thailand, (Reuters) – Japan, the world’s  fifth-biggest air polluter, offered a $4 billion  yen-denominated loan yesterday to Indonesia, the world’s  third-largest air polluter, to help tackle global warming,  Japanese officials said.  

The loan was part of the “Hatoyama Initiative” unveiled  last month by Japanese Prime Minister Yukio Hatoyama, in which  Tokyo will provide financial and technical assistance to  developing countries to help address the problem of climate  change.  

Hatoyama offered the loan during a meeting with Indonesian  President Susilo Bambang Yudhoyono on the sidelines of an  Asia-Pacific summit in the Thai beach town of Hua Hin.  

The initiative was originally proposed by Hatoyama’s  predecessor and amended by his government as the United Nations  Climate Change Secretariat wants developed nations to come up  with at least $10 billion in initial funding.  

Final details of Japan’s new funding initiative may not be  ready in time for the last formal U.N. negotiating session  before the Copenhagen climate meeting in early November.  

The loan offer to Indonesia came a day after Hatoyama urged  his Indian counterpart Manmohan Singh to make an international  commitment on climate change, saying it was vital for a U.N.  deal due in Copenhagen in December.  

Disputes over 2020 emissions cuts by developed nations and  the amounts of cash to help developing nations combat global  warming are among the main sticking points in sluggish U.N.  talks meant to end in Denmark on Dec. 18 with a new treaty.