Emissions of carbon dioxide and five other greenhouse gases dropped 3.5 percent to the carbon equivalent of 1.336 billion tons in fiscal 1998 from the previous year, according to an Environment Agency report released Friday.

Presented at the third gathering of a Cabinet-level group to promote measures to halt global warming, the report on global warming policy shows greenhouse gas emissions have shrunk for the second consecutive year and now stand 5 percent above 1990 levels.

Environment Agency officials say the decline in emissions is due largely to a drop in the industrial sector, attributing the reduction in part to economic stagnation. Household-generated greenhouse gas emissions are also likely to drop due to a jump in electricity supplied from nuclear power, energy-saving home appliances and heightened interest by consumers in saving energy.