JIUTEPEC (Mexico) - INDUSTRIALISED and developing nations are finding more common ground on climate change issues although significant disagreements remain, the top US environmental diplomat said on Tuesday after two days of high-level talks.

Negotiations over a new climate change treaty that would for the first time set targets for fast-growing developing nations have stalled in part over their demands that the richest countries make deep cuts in greenhouse gas emissions.

'There are still significant differences between the parties but the discussions in this group continue to be very good,' said Mr Todd Stern, the US special envoy on climate change, after a meeting of environmental officials from 17 major global economies in the resort town of Jiutepec outside of Mexico City.

'There is an increasing amount of agreement and understanding between the developed and developing countries.' The group's final communique made no mention of concrete commitments, saying only that many countries agreed there should be a 'global long-term goal by 2050 in the context of a specific developed country 2050 (emissions) goal.'

The world needs to cut emissions of greenhouse gases by 25 to 40 per cent below 1990 levels by 2020 if the worst effects of climate change are to be avoided, according to the United Nations' Climate Panel.

Poorer nations led by China have been pushing rich countries to cut emissions of greenhouse gases by 40 per cent or more but wealthier countries have balked at these proposals.

'The level of 40 per cent below 1990 levels is in our judgment not necessary and not feasible,' Mr Stern said.

Limited progress in global talks aimed at drawing up the new climate treaty ahead of a summit in December in Copenhagen have spurred worries that the process could founder.

Mr Stern downplayed these concerns, noting that it would be unusual for a treaty on a topic as complex as climate change to be finished months ahead of schedule.

The leaders of the member nations of the Major Economies Forum are due to meet on the sidelines of the G-8 Summit in L'Aquila, Italy on July 9 to continue discussions over climate policy. -- REUTERS