The new Asia-Pacific Partnership for Clean Development and Climate groups the United States, Japan, China, India, Australia and South Korea. Combined, the six account for half the world's greenhouse gases from burning fossil fuels, such as coal and oil. "Those of us in government believe our job is to help create the environment, as such, that the private sector can really do its work," US Energy Secretary Sam Bodman told a joint news conference with Australian Industry Minister Ian Macfarlane.

"We will expect to challenge the private sector to do more, challenge the private sector to take advantage of opportunities that have been available to them because this matter of greenhouse gas control is one that we all share."

Green groups say the two-day talks in Sydney are a sham and are disappointed environmental NGOs and scientific organisations have not been invited.

Protesters in front of a conference venue on Wednesday buried a large replica of Australian Prime Minister John Howard's head in coal to symbolise what they said was his commitment to industry profits over climate-change solutions.

About 80 executives from global mining and energy firms, including BHP Billiton, Exxon Mobil and Rio Tinto, are attending the talks. Bodman and Macfarlane said they would meet energy officials on Wednesday to ask them to "step up to the plate" to deliver technologies such as clean coal and renewable energy.

BUSINESS MUST TAKE THE LEAD

"Governments and taxpayers simply won't be able to afford the sorts of measures that need to be put in place over the next three to five decades," Macfarlane told Reuters in an interview on Wednesday.

"There are going to have to be substantial reductions of greenhouse gas emissions based on the predicted growth in energy demand and to do that, business will have to play its role."

The six nations meeting in Sydney account for 48 percent of greenhouse gas emissions blamed for global warming that many scientists say is melting glaciers, raising sea levels and will cause more intense storms, droughts and floods.

By comparison, developed nations bound by emissions caps under the Kyoto Protocol account for 35 percent greenhouse gases released into the atmosphere.

In contrast to Kyoto, the Sydney talks will focus on tackling air pollution not through mandatory cuts, but mainly by improving efficiencies in the use of coal and oil, something green groups say is a short-sighted approach to tackling climate change.

For example, the International Energy Agency says if governments stick with current policies, global energy needs and carbon emissions will be 50 percent higher in 2030 than 2005.

While the partnership is adamant it will complement - not compete - with Kyoto, Macfarlane said the reality was technological solutions would easily outstrip any Kyoto savings.

Australia's six states and two territories called on the Australian government on Wednesday to create a national system to trade carbon emissions similar to that in the European Union.

"New technology will only be widely adopted by industry to reduce greenhouse gas emissions if there is a market incentive to do that," Victoria state Environment Minister John Thwaites said.

Local media reported on Wednesday that major coal producers such as BHP Billiton and Rio Tinto were promoting a plan to launch an industry-wide fund by the end of 2006 to develop clean coal technologies to reduce greenhouse gases.

Coal remains the dirtiest fossil fuel in terms of emissions, but its use is set to grow in coming decades because it is abundant and cheap, so the new six-nation climate pact is keen to see the development of cleaner methods of burning it.

The aluminium industry from the six nations was also expected to announce on Thursday a strategy on reducing emissions, energy consumption and improving recycling, said local media.