A new UN report estimates that up to $500 billion (£305 billion) will be needed every year to help developing countries make the transition to a green economy.
The study, which was released yesterday, by the United Nations Environment Programme (UNEP) stated that these funds would need to be provided by the private sector.
Public policies will also need to be "creative" in order to aid the private funding, according to the report.
The money would be channelled into projects to help developing nations tackle climate change, using the initiative as a catalyst to boost low-carbon growth at the same time.
Achim Steiner, UNEP's executive director, said: "Combating climate change represents an important opportunity to move economies onto a low carbon, resource efficient, green economy path."
A recent study by the UN Framework Convention on Climate Change revealed that the private sector is currently reluctant to plough money into developing economies due to the restricted returns on low-carbon investment.
The research comes in the run up to the Copenhagen Climate Change Conference in December.
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