UN-led climate talks early Saturday in Cancun, Mexico, took a key step toward approving an accord that sets up a global aid fund. Objections by Bolivia were cast aside.

The draft agreement, brokered over nearly two days of round-the-clock negotiations, sets up a new global fund to administer billions of dollars in financial assistance to developing countries.

It also calls anew on nations to make "deep cuts" in carbon emissions blamed for global warming. The goal is to keep a rise in temperatures at no more than two degrees Celsius above pre-industrial levels.

The proposal needs the approval of the more than 190 nations, but so far only Bolivia and Cuba have harshly criticised it.

A major step forward has been the setting up of a fund to help poor countries cope with climate change.

Some countries' resistance to the Kyoto Protocol had been a stumbling block during the final week of negotiations, but diplomats may have found a compromise.

Delegates cheered speeches from governments that had caused the most friction during negotiations - Japan, China, even the US - as one by one they endorsed the draft.

The Green Climate Fund is intended to raise and disburse $100bn (£64bn) a year by 2020 to protect poor nations against climate impacts and assist them with low-carbon development.

A visibly emotional Mexican Foreign Secretary and talks chief Patricia Espinosa received several standing ovations for her efforts to produce the draft, which looked set to boost momentum damaged one year ago in Copenhagen.

South Africa will host the next round of talks in the eastern port city of Durban next year.

Source:AFP/BBC