Mexico will host the next big round of climate talks beginning in late November. While few expect major breakthroughs on binding emissions cuts, steps on items like financing to help poor nations battle the extreme effects of climate change could improve prospects for a global deal in following years.

President Barack Obama set a goal last year ahead of global climate talks in Copenhagen to cut US emissions by 17 percent by 2020 from 2005 levels.

"I think we are confident the Obama administration will work to reach that level of reduction," Mexican climate chief Luis Alfonso de Alba told reporters.

It would be "quite dangerous to put in doubt that commitment at this stage because we risk losing the commitment of all the main parties in this process," said de Alba.

Undue conflict over the U.S. emissions goal could put the brakes on progress being made over financing for poor countries, he added.

Some developing countries have worried that the United States, the biggest emitter of greenhouse gases after China, does not have the ability to reach the goal after the Senate failed to pass a climate bill in July.

The legislation was to have launched a cap and trade market that would have raised money for a global fund to help developing countries battle climate change. A U.S. cap and trade market would have also given a jolt of confidence to the world's developing carbon markets to raise more of the funds.

But Obama's climate envoy Todd Stern said last month the United States would honor the short-term goal, despite the Senate's failure to act.

'MODEST CONTRIBUTION'

The nonprofit World Resources Institute has said that aggressive enforcement of US initiatives already on the books could help the country near the target.

The Obama Administration also contends the Environmental Protection Agency can enforce a number of programs to reduce the country's carbon footprint, although the agency faces court challenges from industry.

De Alba called the US goal a "modest contribution" but he acknowledged other developed countries are having trouble with emissions-cutting goals with the Kyoto Protocol set to expire in 2012.

World leaders failed last year in Copenhagen to agree to binding emissions cuts and few expect major progress when the talks continue in Cancun.

Obama, however, led a small group of large emitting countries to form the Copenhagen Accord. It encourages rich countries to pledge funds to help poor countries deal with the worst effects of climate change.

The nonbinding accord, which more than 110 countries have signed, promises that rich countries will provide poor nations with $30 billion between 2010 to 2012 to help them move away from fossil fuels and adapt to floods, heat waves and droughts.

The accord also promises that rich countries increase aid to $100 billion a year by 2020.

De Alba said if financing agreements can be reached, it could eventually lead to a binding pact on cutting emissions.

"This is a process in which everyone is looking at their neighbor," said de Alba. "If we want China, India, Brazil, South Africa or Mexico to honor their own commitments those from United States and the European Union will also need to be honored."

Among the challenges at Cancun will be figuring out how to pay for the long-term aid after the cap and trade setback.

The short-term funding pledges are mostly coming from governments but "a large percentage of the $100 billion a year money will have to come from the private sector one way or the other," said de Alba.