TOKYO, June 9 (Reuters) - Japan has the capacity to cut greenhouse gas emissions by 14 percent by 2020 from current levels, Prime Minister Yasuo Fukuda said on Monday, acknowledging but not bowing to pressure to set a firm interim target yet.

But he said that he wanted to announce an interim target for the country next year.

Japan, the world's fifth-largest emitter, will set a long-term goal to reduce emissions by 60-80 percent from current levels by 2050, and contribute up to $1.2 billion to a new multilateral fund with the United States and Britain that will help developing countries fight global warming, Fukuda added in a speech.

Japan is aiming to take the lead in the fight against climate change as chair of the Group of Eight summit this year, but domestic industry groups have balked at committing to binding emissions targets or mandatory carbon trading schemes. (Reporting by Chisa Fujioka)

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