There have been two significant developments at the global conference on climate change in Copenhagen, suggesting that a possible agreement is not beyond reach.
The US Secretary of State Hillary Clinton announced at the conference today that the US was will to support a $100 billion global fund to help fund poor countries in their battle against climate change.
A little later the Danish government, which is presiding over the talks, said that there had been a break though in the deadlocked negotiations and a process had been agreed to.
The talks will now split into two contact groups, one looking at the document relating to the continuation of the Kyoto Protocol from 2013 onwards; the other looks at all the issues pertaining to those countries – including the US and China – which are outside the remit of the Kyoto agreement.
As many open groups as are needed will be set up to support the work of the contact groups.
Speaking at the conference today, Ms Clinton said that the US commitment to contribute to a fund that would be worth $100 billion a year by 2020 would only be made if other leaders were willing to sign up to a strong deal.
She said that the offer was conditional: "In the absence of an operational agreement that meets the requirement that I outlined there will not be the final commitment that I outlined - at least from the US.”
It is understood the US proposal envisages both public and private financing. A number of possibilities have been made in relation to how this initiative may be funded. One proposal from Britain suggested a tax based on the Tobin Tax model, which envisages a micro-tax on currency transactions.
While the deadlock in talks has been lifted, the Danish presidency has privately been downbeat about a comprehensnive deal emerging from the meeting.
It has also had to drop plans to propose new draft texts today after opposition from many developing nations.
The Danish newspaper Politiken this morning quoted a Danish government source as saying: "We are fighting like mad and we haven't given up, but we will need help from world leaders. They must put their money where their mouth is. Otherwise it'll be very difficult."
There are still deep divisions between richer industrialised countries and poorer developing countries over the extent of emissions, over the amount aid that needs to go to poorer nations to help them adapt to changes in climate. There is also no agreement on how the overall cut in emissions will be divided between regions and countries.
A number of parties again expressed the sentiment this morning that a bad deal for developing countries was worse than no deal at all.
The Climate Action Network (CAN), a worldwide network of environmental groups, reiterated its view that no deal was better than a bad deal.
“If you do not address this, it will not address the impacts of climate change. Short-term measures will not address long-term mitigation needs. We really need to address the impacts.
The African Group also expressed this view today. A spokesman for the group, Kamel Djemouia, was implicitly critical of the stance adopted by some developed blocs.
“Those who are not forcing the process who are trying to jeopardise what we are doing. I am not sure humanity will forgive them for the next 50 years,” he said.
The tiny Pacific island of Tuvalu also emphasises its strong view that the emission targets should result in temperature rises of 1.5 degrees Celsius and not 2 degrees Celsius as has been advocated by other countries.
The prime minister Apisai Ielemia expressed his frustration at countries who are trying to break the solidarity of small island states like his in the Pacific, by offering them adaptation funds in return for less rigid demands on temperature.
The tiny island, with a population of 11,000 has said its very existence is in danger because of rising ocean levels due to global warning. A spokesman Taukiei Kitala said it would not give up it fight to achieve a legally binding agreement that ensured emissions were contained to prevent temperature rises of above 1.5 Celsius
“No countries like Australia, the US, nor the UK will intimidate us into giving up on that goal,” he said.
Speaking a short while ago at the high level segemtn, the Brazilian president Luiz Lula da Silva said that Brazil is already spending $16 billion a year on climate change mitiggation and adaptation and would continue to do so until 2020.
He said that this spending was over and above any offer it would make during the talks. He said that Brazil was more than willing to play its part in finding a negotiation.
"Now is the time to act. The verdict of history will not well judge those who have failed in their repsonsibility to act," he concluded.