Angela Merkel has admitted that Berlin and Washington remain deeply at odds on what next month's G8 rich nations' summit should decide on tackling climate change, with the German chancellor unwilling to compromise on certain targets that Washington finds unacceptable.

Germany, along with other European governments and many environmental groups, argues that a strong commitment at the G8 summit to cutting greenhouse gas emissions would be an essential step ahead of UN climate talks on a post-Kyoto treaty in Bali in December.