Representatives from 178 governments are trying to resolve their differences prior to the big conference in Cancun in November.

The existing agreement caps the carbon dioxide emissions of almost 40 developed countries from 2008-2012. New targets need the agreement of at least 143 countries.

So far, a deal has been out of reach due to vagueness about emissions reduction targets and a timeline for achieving them, finance for developing countries and monitoring emissions cuts.

Opening the talks, the new UNFCCC executive secretary Christiana Figueres said, referring to the need for a binding legal agreement which did not happen last year at Copenhagen, "Governments have a responsibility this year to take the next essential step in the battle against climate change."

"There is a lot of interest this week to pick up the pace and move with resolution toward Cancun," she told reporters.

Pessimism was increased when the American Senate refused to pass a law on reducing greenhouse gas emissions this week (see separate story).

But the US climate envoy Todd Stern insisted that America stands by its commitment to reduce greenhouse gas emissions by 17% against 2005 levels by 2020, despite the Senate's failure to codify the target in law.

The US envoy said success in Cancun did not hinge on the passing of comprehensive legislation in the US.

Others disagree. The Africa group for instance argues that developed countries should contribute 1.5 per cent of their gross domestic product to a climate finance fund. The US Senate is not likely to concur with this.

No replacement for Kyoto?
The European Union's climate delegation warned on the first day that the Cancun summit will probably not result in a new climate treaty to succeed the 1997 Kyoto Protocol.

"It will not be the big deal. Hopefully it will be a big step forward to the deal," co-chief Artur Runge-Metzger told Reuters.

Some features of a new climate treaty such as technology transfer, adaptation, the monitoring, reporting and verification of emissions reductions should emerge at Cancun, Runge-Metzger said. "Then we will take the next step towards the next (summit)," he added, meaning the following 2011 meeting in South Africa.

"The most important thing is to see a way forward on the negotiating text," Runge-Metzger said.

The EU and Africa are open to considering the option of two treaties instead of one to overcome an impasse between developing and rich nations.

"It is something we are able to consider on the condition that there is coverage of all major emitters and we want to see from developing countries sensible commitments to climate change," Runge-Metzger added, meaning that they could take the form of a decline in countries' business-as-usual emissions, instead of emissions targets.

The consequence of failure
But what happens if the world cannot agree on a new climate pact?

"Many believe the Kyoto Protocol is coming to an end which is factually incorrect. There is no impediment for emissions trading to continue or the UN's Clean Development Mechanism," Runge-Metzger said. "Things can continue without the Kyoto Protocol."

In the talks, the European Union said that it was open to considering a second commitment period under the Kyoto Protocol, as part of a wider, more rigorous and ambitious agreement, provided that countries that did not ratify the Kyoto Protocol and other major emitters take on their fair share of the global emission reduction effort in an ambitious, legally binding global agreement.

The EU's proposal to move to a 30% emissions reduction target by 2020 versus 1990 levels from its current 20% goal still stands and internal discussions have started within the 27-nation bloc.

"If offers from other countries are good enough it would prompt us to move forward," Runge-Metzger said.

Many countries have been waiting for the United States to show concrete action on climate change as the world's largest emitter before committing to higher targets.

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