Developing countries need massive amounts of investment to support a shift to low carbon and climate resilient growth and development. According to the World Development Report 2010, mitigation in developing countries could cost between $140 to 175 billion per year over the next 20 years, with adaptation investments rising to an average of $30 to $100 billion a year between 2010 and 2050. Yet efforts to raise funding for mitigation and adaptation have been inadequate, and, to date, amount to less than 5% of projected needs.

Given the scale of investment needed, the international community needs to give careful thought to options that could generate funding, and financial instruments that will deliver that funding at country level.