Canada and other Commonwealth countries have agreed to create a fund to help nations that have become especially vulnerable to climate change.

At the Commonwealth Summit in Trinidad and Tobago, the group of 53 countries agreed to support a fund they say would be worth $10 billion annually by 2012.

"We believe an internationally legally binding agreement is essential," the text of the Commonwealth Climate Change Declaration says. The fund will begin next year.

It will help countries most at risk to adapt to climate change, and will set aside at least 10 per cent towards smaller island and low-lying countries.

It's "basically an attempt to win the support of small island nations in the Commonwealth who feel they are going to be swamped as global warming continues," CTV's Roger Smith, who is in Trinidad and Tobago, told CTV News Channel.

One of the countries most at risk is the Maldives, a chain of islands south of India that sits only about 2 metres above sea level. It could be completely submerged if sea levels rise.

In September, Maldivian cabinet ministers held a meeting underwater to make a point that the country could soon be wiped out.

Smith reported that there have been rumours at the Commonwealth conference that Canada was resisting a strong statement on the climate change fund.

He said that Canada has not yet held a news conference, and reporters have had little access to Prime Minister Stephen Harper.

On Friday, Ban Ki-Moon, Secretary-General of the United Nations, urged Canada to set an example on climate change ahead of next month's summit in Copenhagen, Denmark. He specifically mentioned Canada because it will host the G20 and G8 meetings in Ontario next year.

"Many countries, developed and developing countries, have come out with ambitious targets," Ban said Friday.

"Therefore, it is only natural that Canada should come out with ambitious mid-term targets as soon as possible."

On Friday, Peter Kent, Canada's minister of state for foreign affairs, told reporters that "a deal in Copenhagen is a long shot."

But on Saturday, Harper seemed to back off on statements that success in Denmark is unlikely.

"I look forward to seeing a comprehensive agreement in Copenhagen, to actually get on with actually reducing emissions as opposed to just setting abstract targets," he said.

The Commonwealth declaration also says that countries need to take action to reduce emissions, but said that leaders still can't agree on whether an increase in global temperatures should be capped at less than 1.5 degrees Celsius, or 2 degrees above pre-industrial levels.

The Commonwealth agreement builds on what French President Nicolas Sarkozy -- who was invited to the talks earlier this week -- described as renewed momentum for a global climate deal in Copenhagen.

The prospect of a binding greenhouse-gas deal in the Danish capital has become more likely in recent days now that countries are starting to break deadlocks over key issues.

The Commonwealth countries represent one third of all nations that will be at the table in Copenhagen.

With a report from CTV parliamentary correspondent Roger Smith in the Port of Spain