The Japanese government has unveiled a plan to phase out nuclear power by 2030, in a major policy shift after last year's Fukushima disaster. Under proposals put forward by a government panel, the reactors would be shut down completely by the year 2040.

Before the Fukushima disaster, nuclear power supplied about a third of Japan's energy needs.

Japan aims to increase the use of renewable energy and import more oil, coal and gas for its power needs.

The plan faces strong opposition from businesses. Before the nuclear disaster, Japan had wanted to raise its nuclear energy use to 50% by 2030.

"There is no way we can accept this - I cannot think this is technologically possible," Hiromasa Yonekura, chairman of the Keidanren (Japan Business Federation), was quoted by AFP news agency as saying.

Nuclear energy has become a key public issue in Japan.

Nuclear plants were shut down for safety checks in the wake of the March 2011 earthquake and tsunami which led to the Fukushima nuclear disaster. The restart of reactors in the town of Ohi in July sparked large public protests.

Prime Minister Yoshihiko Noda, who had previously urged a return to nuclear power, could face a general election later this year. Whether a future administration would back the same energy policy is not clear.