(Recasts with Australian PM says no APEC greenhouse targets)

By Michael Perry

SYDNEY, Sept 2 (Reuters) - Australia said on Sunday the coming Asia-Pacific leaders' summit in Sydney, which will focus on global warming, would set no binding targets for greenhouse gas reduction but might agree on a post-Kyoto consensus.

"We won't reach agreement nor do we imagine for a moment that we could reach agreement on binding targets amongst the member countries of APEC," said Prime Minister John Howard, as official-level talks began at the start of a week of meetings of the 21-nation Asia Pacific Economic Co-operation (APEC) forum.

APEC leaders including U.S. President George W. Bush converge on the city for a summit on Sept 8-9.

Howard said developing nations, such as China, were opposed to setting binding targets and each nation should set its own greenhouse gas reduction programme. Howard opposes setting binding targets, preferring what he calls "aspirational targets".

Malaysian Trade Minister Rafidah Aziz, who will attend APEC, said last week that the failure of Australia and the United States to ratify the Kyoto Protocol meant they lacked the credentials to lead climate change talks in Sydney.

Australian police arrested 12 Greenpeace activists on Sunday after an APEC protest at Newcastle, the world's biggest coal export port north of Sydney, called for binding cuts to greenhouse gases.

Green groups and Australia's Labor opposition said the APEC summit would be a failure if it did not set greenhouse reduction targets.

Authorities expect violent protests at APEC, as thousands rally against the Iraq war and global warming, and are staging Australia's biggest ever security operation for APEC.

In its protest on a coal ship in Newcastle, Greenpeace unfurled a banner written in Chinese urging Beijing to be aware of efforts to undermine Kyoto by Australia and the United States.

"Real action on climate change means moving away from coal and shifting to clean, renewable energy, and we don't have the luxury of time for expensive talkfests that have no concrete outcomes," said Greenpeace campaigner Ben Pearson.

Howard announced A$70 million ($58 million) in Asia-Pacific climate change initiatives on Sunday, which will help fund the development and deployment of cleaner, more efficient energy technologies in the region.

POST KYOTO

Australia and the United States oppose the Kyoto Protocol, arguing that its binding greenhouse targets are flawed because major polluters, such as India, are excluded from the protocol.

"We do not believe that continuing down the Kyoto path is going to provide a solution to the problem," Howard said.

"What I would like to see the APEC meeting in Sydney do is develop a consensus on a post-Kyoto international framework that attracts participation by all emitters," he said.

Howard, who only acknowledged climate change in late 2006, opposes setting targets, arguing that this would damage an Australian economy heavily reliant on coal-fired power.

"Howard has spent his entire political career as a climate change sceptic and now he seeks to pretend to be part of a climate change solution," said Labor opposition leader Kevin Rudd, who leads Howard in opinion polls ahead of a national election expected within months.

"Howard will not be fair dinkum (honest) on climate change until he ratifies Kyoto, until he accepts greenhouse gas targets for Australia and a fixed timetable for achieving those reductions," Rudd told reporters.

After the initial official-level meetings which began on Sunday, APEC foreign and trade ministers will meet later in the week before their presidents and prime ministers arrive.

Authorities have erected a 5-km (3-mile) security fence across Sydney's central business district to isolate the leaders in the harbourfront Opera House and nearby hotels.

Australian security officials say they have received no intelligence of a terrorist threat to APEC, and the nation's counter-terrorism alert remains unchanged at medium, which means a terrorist attack could occur. Australia, a staunch U.S. ally, has never suffered a major peace-time attack on home soil.

Fighter aircraft and police helicopters are enforcing a 45-nautical-mile restricted air space over Sydney and will intercept any unauthorised aircraft. A total of 5,000 police and troops are patrolling the city centre.

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