"It is a disappointing outcome that we have not been able to reach agreement on climate financing today," said Swedish Finance Minister Anders Borg after member states met in Luxembourg.

"There are several very difficult issues that will have to be dealt with," he added, pointing to next week's summit of EU leaders in Brussels.

"Obviously the political pressure on this issue ... will increase," he said, expressing the hope that opposition from nine, mainly eastern European countries and Germany, will fade in the run-up to United Nations negotiations in Copenhagen in December.

Britain's Chancellor Alistair Darling delayed his flight to try and salvage a compromise agreement, which would have seen the nine legitimise European Commission figures that say the EU will need to cough up some 100 billion euros (149 billion dollars) each year from 2012 to meet developing world needs.

"We had a good opportunity today," Darling added. "Unfortunately, a number of countries wanted two things that the majority found unacceptable."

He said Poland and its allies wanted so-called 'fast-start' financing, for the period leading up to the expiry of the existing global Kyoto protocol, to be contributed on a "voluntary basis."

Similarly, he said those countries wanted to pay less into the European pot over the longer term -- meaning those paying voluntarily would end up paying twice over.

But he said people would not allow their governments to fail to reach agreement, less than 50 days from the Copenhagen talks, underlining: "The issue is too big to let it lie."

British Prime Minister Gordon Brown warned on Monday that the world faces "catastrophe" if action is not agreed on time.

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