(Recasts with draft seeking global action)

By Alister Doyle and Gerard Wynn

NUSA DUA, Indonesia, Dec 8 (Reuters) - All nations must do more to fight climate change, and rich countries must make deep cuts in greenhouse gas emissions to avoid the worst impacts, a draft proposal at United Nations talks said on Saturday.

The four-page draft, written by delegates from Indonesia, Australia and South Africa as an unofficial guide for delegates from 190 nations at the Dec. 3-14 talks, said developing nations should at least brake rising emissions as part of a new pact.

It said there was "unequivocal scientific evidence" that "preventing the worst impacts of climate change will require (developed nations) to reduce emissions in a range of 25-40 percent below 1990 levels by 2020."

The draft is the first outline of the possible goals of talks on a new global deal to replace the Kyoto Protocol, which binds just 36 developed nations to cut emissions of greenhouse gases by 5 percent below 1990 levels by 2008-12.

"Current efforts ... will not deliver the required emissions reductions," according to the text, obtained by Reuters, that lays out a plan for averting ever more droughts, floods, heatwaves and rising seas.

"The challenge of climate change calls for effective participation by all countries," it said. The United States is outside the Kyoto pact and developing nations led by China and India have no 2012 goals for limiting emissions.

Echoing conclusions this year by the U.N. climate panel, it said global emissions of greenhouse gases would have to "peak in the next 10 to 15 years and be reduced to very low levels, well below half of levels in 2000 by 2050."

THREE OPTIONS

The draft lays out three options for how to proceed after Bali -- ranging from non-binding talks over the next two years to a deadline for adopting a new global pact at a U.N. meeting in Copenhagen in late 2009.

Rich nations should consider ways to step up efforts to curb emissions of greenhouse gases by setting "quantified national emission objectives", the draft says.

Poor countries should take "national mitigation actions ... that limit the growth of, or reduce, emissions," it says. It adds that "social development and poverty eradication are the first and overriding priorities" for poor nations.

Delegates will report back on Monday with reactions.

Earlier, trade ministers from 12 nations met for the first time on the sidelines of a U.N. climate conference, opening a new front in the global warming battle.

Their two-day discussions ending on Sunday focus on easing tariffs on climate-friendly goods to spur a "green" economy. About 20 finance ministers will join the fringes of the Bali meeting on Monday and Tuesday.

"Climate change solutions open up important opportunities for jobs and trade," Australian Trade Minister Simon Crean told reporters. Ministers at the trade meeting included those from the United States, Australia, Brazil and India.

Differences over who should take the blame for, and do most to curb, emissions threatened to deadlock the main talks. Canada and Australia joined Japan on Saturday in calling for commitments from some developing countries.

But developing nations would find it "inconceivable" to accept binding targets now, said the U.N.'s climate change chief Yvo de Boer. An alliance of 43 small island states urged even tougher action to fight climate change, saying they risked being washed off the map by rising seas.

Outside the conference centre, Balinese dancers used sticks to burst black balloons labelled "CO2", the main greenhouse gas.

-- For Reuters latest environment blogs click on: http://blogs.reuters.com/environment/ (Reporting by Gerard Wynn and Alister Doyle, Editing by Tim Pearce)

AlertNet news is provided by