Global warming and the associated changes in the world climate pattern have been accepted world wide as the gravest threat to humanity in the 20th century. To mitigate the impacts of global warming, the Kyoto Protocol was established in 1997 with the objective of reducing global greenhouse gases (GHGs) emission, in particular carbon dioxide (CO₂), by 5.2% below 1990 levels. Developed nations that ratified the Protocol are committed to GHG reduction targets while developing nations are encouraged to reduce GHG emissions on a voluntary basis. Since most of the GHGs emissions come from the energy sector, energy policy plays an important role in fulfilling the Kyoto Protocol obligations. This year marks the beginning of the commitment period for the 2012 Kyoto Protocol. In this case, it would be worthwhile to compare the energy policies in Malaysia and Japan as these nations move towards fulfilling their obligations towards the Kyoto Protocol; bearing in mind that both countries ratified the Protocol, but that Japan commits a reduction target of 6% while Malaysia bears no obligation. Based on the comparison, recommendations were made on how a developing nation like Malaysia could adopt the policies implemented in Japan to suit local conditions and contribute significantly to GHG reduction.