By Peter Hobson and Valerie Volcovici

CANBERRA/BELEM, Brazil (Reuters) - Australia risks undermining efforts to establish itself as a leader in the green energy transition and letting down its vulnerable Pacific island neighbours if its bid to host next year's biggest climate summit fails, diplomats and analysts say.

Australia was long considered the front-runner to hold the COP31 conference, aiming to bolster its ambitions to become "a renewable energy superpower" and highlight issues faced by Pacific island nations which it plans to co-host the conference with.

However, Turkey doubled down on a rival bid, saying it wants a summit that more directly tackles financing for developing countries’ climate efforts while showcasing its own progress toward a 2053 net-zero emissions target. That has led to an attention-sapping impasse that must be overcome at this year's COP30 meeting currently underway in Belem, Brazil.

The annual COP – or Conference of the Parties - is the world's main forum for driving climate action.

The host matters because they set the agenda and lead the diplomacy needed to reach global agreements, while drumming up investment for new green initiatives.

Australia is pivoting away from coal and gas power to renewables and is seeking investment in critical minerals, green steel and transition technologies such as batteries.

"Hosting COP is absolutely crucial for Australia’s economic future," said Wesley Morgan, a climate academic at the University of New South Wales. "We........

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