There are two primary channels through which loss and damage is discussed in the UNFCCC framework. In Part 3 of this series on loss and damage, we explore these two channels. We also discuss advances (and setbacks) on loss and damage at COP 23.

Read Part 1 and Part 2 of the series for an introduction to loss and damage, its intricacies, and why advocates urge swift action to address it.

Warsaw International Mechanism

Loss and damage is a part of the Warsaw International Mechanism for Loss and Damage (WIM), which was a result of the UNFCCC Conference of Parties (COP) in 2013. Under the WIM, an Executive Committee was established with ten representatives each from developing and developed countries. As it happens, half of the representatives from developing countries are from least developed countries. The WIM aims to enhance knowledge to address loss and damage, strengthen dialogue and coordination among stakeholders, and enhance action and support through means including finance, technology and capacity-building.

Paris Agreement

Loss and damage is secondly included in the UNFCCC with Article 8 of the Paris Agreement, which arose from COP 21 in 2015. Article 8 articulates the importance of addressing loss and damage in the UNFCCC and reiterates that the WIM is the authority through which information collection should occur. Additionally, Article 8 makes clear that it does not involve or provide “a basis for liability or compensation” regarding loss and damage.

COP 23 – Fiji-in-Bonn

As we discussed in Part 1 of this series, the issue of loss and damage has become increasingly relevant, with many communities already facing devastating impacts of climate change. This is especially true for vulnerable nations such as Fiji, which oversaw the COP this year. Because loss and damage is not a standing agenda item, it is discussed only once a year by all nations during the COP. It is not discussed at any other meetings of the parties throughout the year, such as in Subsidiary Body meetings. As a result of these reasons, loss and damage was a major topic at COP 23 in Fiji-in-Bonn.

In their opening statements, many negotiating blocs representing developing nations (such as the Alliance of Small Island States and Least Developed Countries) expressed their eagerness to make progress on loss and damage at the COP. They hope to develop a mechanism to compensate the victims of climate change. Many developing nations, such as Bangladesh and Nepal, have already begun to mobilize their own funds to address loss and damage. However, it is expected that developed countries, that have historically been most responsible for climate change, will provide a large part of the funds.

However, as Climate Tracker reports, “the discussion on loss and damage has been heated, with Australia and European Union saying that there is ‘insufficient statistical evidence’ that extreme weather events such as typhoons are singularly caused by climate change.”

Advocates for loss and damage policy were aiming for two main goals at Fiji-in-Bonn. First, they urged for its addition as a permanent agenda item under the Subsidiary Bodies. This meant that negotiations on loss and damage could continue throughout the year after the end of the COP. Second, they hoped for a stronger five-year working plan for the WIM. There was much contention on both of these issues, as is expected with the heated debate on loss and damage.

After late night negotiations, the parties came to a compromise of recommendations for the Subsidiary Bodies. The compromise involves a one-off session on loss and damage at the Subsidiary Body meeting in 2018 in place of a permanent agenda item. The compromise also urges the WIM to provide clarity in the five-year working plan, but falls short of requesting recommendations on potential financing mechanisms.

Financial Mechanisms to Address Loss and Damage

In later parts of this series, we delve into ways to potentially to address loss and damage. We will also discuss challenges to adopting meaningful policy as well as ethics on the issue. Stay tuned!