Warsaw establishes international mechanism for loss and damage

The decision by the Warsaw climate conference to establish an international mechanism to address loss and damage caused by climate change was the culmination of a long struggle waged by developed countries. Zhenyan Zhu explains.

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IN the final hours of the Warsaw climate conference on 23 November, Parties decided to establish the Warsaw international mechanism for loss and damage associated with climate change impacts, after wrangling between developing countries and the United States over one word in the text.

Following ministerial-led consultations, paragraph 1 of the final draft decision text established the Warsaw international mechanism for loss and damage 'under the Cancun Adaptation Framework' (CAF), which did not find comfort among the developing countries, led by the Group of 77 and China.

The G77 and China had insisted that the mechanism be established as a third pillar of the Convention, noting that loss and damage is beyond adaptation (adaptation and mitigation are the current two pillars of the Convention), and rejected a framing under the CAF.

However, keeping any mechanism for loss and damage under the CAF was a very strong red line for the United States, which is concerned about the financial and legal implications of establishing a third pillar.

At the closing of the loss and damage agenda item, during the final COP plenary, opening comments centred on the word 'under'. A compromise was found between the developing countries and the US with the addition of the following words after the CAF - 'subject to review at the twenty-second session of the Conference of the Parties (November-December 2016) pursuant to paragraph 15 below' -  and other modifications. (See below for further details.)

With this decision, many Parties believe that a third pillar of the Convention has indeed been clearly established. Parties have agreed that adaptation contributes towards addressing loss and damage, but that loss and damage 'in some cases involves more than that which can be reduced by adaptation' (preambular paragraph 4). With the images of the destruction caused by Typhoon Haiyan on the mind of every delegate, it would have been difficult to conclude otherwise.

This decision to establish an international mechanism for loss and damage represents the culmination of many years of work by developing countries to build on the Bali Action Plan mandate (decision 1/CP.13) to consider means to address loss and damage, as well as earlier proposals by the Alliance of Small Island States (AOSIS) dating all the way back to 1991.

After slow but steady progress during the first week of the Warsaw conference under the UNFCCC's Subsidiary Body for Implementation (SBI), negotiations on loss and damage were carried into the second week, after the issue was transferred to the COP agenda during the closing of the SBI. The negotiations under the SBI were facilitated by Ambassador Ana Lindstedt (Sweden) and Ambassador Robert Van Lierop (St. Kitts and Nevis). Ministers Edna Molewa (South Africa) and Lena Ek (Sweden) formally took over the facilitation role once the issue was transferred to the COP, with continuing assistance from the ambassadors.

Parties worked hard over the course of the second week, with many late nights, and on 22 November, the co-facilitators launched their first version of a final compromise text. COP 19 was supposed to end on 22 November but spilled over to the evening of the following day. Bilaterals between groups of Parties continued overnight on 22 November, as Parties exchanged views on what improvements were still necessary to enable groups to accept the final decision.

As a result of the overnight bilaterals and consultations with the co-facilitators, Parties received a final 'take it or leave it' text, issued as document L.15, at around 11 am on 23 November. It was clear at that point that the gap between the positions of the G77 and China and the United States had not been completely closed in the crafting of the compromise text.

Fiji, on behalf of the G77 and China, reminded the COP plenary that vulnerable developing countries had been advocating for the issue of loss and damage over almost two decades. It agreed to every single word in the draft text except the word 'under [the CAF]', because 'the most vulnerable people from developing countries cannot find comfort to live with the "under"'. It requested more time from the COP President to find another word instead.

The Philippines, led by its climate change commissioner Naradev Sano, supported the G77 and China position and pointed out that a preambular paragraph acknowledging the difference between adaptation and loss and damage contradicted the paragraph 1 reference to the CAF. There was an acknowledgement that loss and damage is more than adaptation - that loss and damage associated with the adverse effects of climate change is more than those that can be addressed through adaptation.

He said that the one word 'under' would forever mean the difference between two paths - towards a spiralling of distrust in the process or a bold step towards building trust. This was a mechanism that was very important to vulnerable developing countries, real people and real lives, and it now boiled down to one word. This was a defining moment and the Philippines requested to get that 'one word out of the way'.

The COP President said compromise was close and urged Parties to search for such compromise.

Bangladesh responded that it had reservations on several paragraphs but it could give concessions in the spirit of compromise, and in return it requested the deletion of the word 'under' in paragraph 1. It quoted the Charles Dickens novel A Tale of Two Cities, saying that 'this is the best of times and this is the worst of times'. It called for making this 'the best of times' by making a prudent decision.

Bolivia said the adverse effects of climate change resulted in prolonged threats, that all countries must be committed to protecting Mother Earth, and that countries causing the effects of climate change must display greater financial commitment. It said that loss and damage was beyond adaptation, and that the consequences of some extreme events would lead to permanent losses, which must be prevented. Addressing loss and damage could only be done by technology transfer, building information systems through an international mechanism, and finance from developed countries due to their historical responsibility. It said that this was the final stretch and developing countries could not wait any longer and could not waste all the work over one word.

Nauru, on behalf of AOSIS, in response to the so-called 'red line' in paragraph 1 which the US insisted on, said that this was also a very real red line for AOSIS countries. AOSIS had compromised on many elements already and urged the US to show flexibility so that they could take good news back home.

The European Union proposed to have discussions in a 'huddle' on this issue as this model had seen success on other issues (referring to the negotiations under the Ad Hoc Working Group on the Durban Platform for Enhanced Action).

Nepal, on behalf of the least developed countries (LDCs), said it came to Warsaw with high expectations, one of the most important of which was for a loss and damage mechanism. It echoed what the Philippines had said, to let the single word get out of the way, and that loss and damage was beyond adaptation.

Nicaragua said Central America was a highly vulnerable region. Mitigation, adaptation and loss and damage were three distinctly distinguishable categories. It looked forward to the fulfilment of the decision made in Doha at COP 18. It echoed other comments about being one word away from agreement and appealed for flexibility from those holding up the decision.

Canada called for a motion for a 15-minute suspension to deal with this issue.

After an hour-long 'huddle', which involved the leader of the G77 and China, Sai Navoti of Fiji, Todd Stern of the US and many others from developed and developing countries, a compromise was reached.

A new preambular paragraph 4 was inserted into the decision text which read: 'Also acknowledging that loss and damage associated with the adverse effects of climate change includes, and in some cases involves more than, that which can be reduced by adaptation.'

Paragraph 1 was amended by adding the following words after 'under the Cancun Adaptation Framework': 'subject to review at the twenty-second session of the Conference of the Parties (November-December 2016) pursuant to paragraph 15 below'.

In paragraph 15, after 'deciding to review the Warsaw international mechanism', a phrase more clearly specifying the content of review was added: 'including its structure, mandate and effectiveness'.

Fiji, speaking on behalf of the G77 and China, informed the plenary that there had earlier been one additional amendment to the text agreed to by all Parties that had not been reflected in the text of paragraph 5 sub-paragraph 3. The phrase 'including extreme weather events and slow onset events' was then added to the end of the paragraph.

There was a consensus on the language suggestions made by the G77 and China, and Parties adopted the text as amended.

In a closing statement, the Philippines stated its interpretation of the term 'review' in paragraph 15 of the decision. It said that establishing the Warsaw international mechanism for loss and damage under the CAF, as stated in paragraph 1, effectively limited the actions to be undertaken in addressing loss and damage to adaptation and risk management, which effectively omitted the actions required for the recovery and rehabilitation of lost and damaged livelihoods, communities and ecosystems. As such, the Philippines was of the view that the 'review' referred to in paragraph 15 also included a review of the mechanism's institutional placement vis-…-vis the CAF.

The COP President stated that the Philippines' statement would be reflected in the record of the session.

The US, in its statement on the final text, said that it recognised the critical implications of loss and damage. The US and other Parties had engaged constructively to establish for the first time an international mechanism to address loss and damage and areas of convergence and consensus had been found.

The Bahamas said loss and damage had been the single most important issue for AOSIS. At this meeting Parties addressed many technical gaps in their understanding of the issue and also bridged the philosophical gap. They had worked very hard to develop a shared understanding on the impacts of climate change, gathering knowledge that loss and damage was well beyond adaptation and required an urgent response. In Warsaw, they had achieved success. The spirit of Doha had not been lost and the spirit of reconciliation, though tested, was not damaged.                                         

Zhenyan Zhu is a researcher with the Third World Network.

Highlights of the Warsaw decision on loss and damage 'The Conference of the Parties, . Acknowledging the contribution of adaptation and risk management strategies towards addressing loss and damage associated with climate change impacts, Also acknowledging that loss and damage associated with the adverse effects of climate change includes, and in some cases involves more than, that which can be reduced by adaptation, . 1. Establishes the Warsaw international mechanism for loss and damage, under the Cancun Adaptation Framework, subject to review at the 22nd session of the COP (November-December 2016) pursuant to paragraph 15 below, to address loss and damage associated with impacts of climate change, including extreme events and slow onset events, in developing countries that are particularly vulnerable to the adverse effects of climate change (hereinafter referred to as the Warsaw international mechanism), and in line with the provisions contained in paragraphs 2-15 below; 2. Establishes an executive committee of the Warsaw international mechanism, which shall function under the guidance of, and be accountable to, the COP, to guide the implementation of functions referred to under paragraph 5 below; 3. Requests the executive committee to report annually to the COP through the Subsidiary Body [for] Scientific [and] Technological Advice and the Subsidiary Body for Implementation and make recommendations, as appropriate; 4. Decides that, as an interim measure, the executive committee shall consist of two representatives from each of the following bodies under the Convention; ensuring that there is a balanced representation between developed and developing country Parties: the Adaptation Committee, the Least Developed Countries Expert Group, the Standing Committee on Finance, the Technology Executive Committee and the Consultative Group of Experts on National Communications from Parties not included in Annex I to the Convention; 5. Further decides that the Warsaw international mechanism shall fulfil the role under the Convention of promoting the implementation of approaches to address loss and damage associated with the adverse effects of climate change, pursuant to decision 3/CP.18, in a comprehensive, integrated and coherent manner by undertaking, inter alia, the following functions: (a) Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change, including slow onset impacts, by facilitating and promoting: (i) Action to address gaps in the understanding of and expertise in approaches to address loss and damage associated with the adverse effects of climate change, including, inter alia, the areas outlined in decision 3/CP.18, paragraph 7(a); (ii) Collection, sharing, management and use of relevant data and information, including gender-disaggregated data; (iii) Provision of overviews of best practices, challenges, experiences and lessons learned in undertaking approaches to address loss and damage; (b) Strengthening dialogue, coordination, coherence and synergies among relevant stakeholders by: (i) Providing leadership and coordination and, as and where appropriate, oversight under the Convention, on the assessment and implementation of approaches to address loss and damage associated with the impacts of climate change from extreme events and slow onset events associated with the adverse effects of climate change; (ii) Fostering dialogue, coordination, coherence and synergies among all relevant stakeholders, institutions, bodies, processes and initiatives outside the Convention, with a view to promoting cooperation and collaboration across relevant work and activities at all levels; (c) Enhancing action and support, including finance, technology and capacity-building, to address loss and damage associated with the adverse effects of climate change, so as to enable countries to undertake actions pursuant to decision 3/CP.18, paragraph 6, including by: (i) Provision of technical support and guidance on approaches to address loss and damage associated with climate change impacts, including extreme events and slow onset events; (ii) Provision of information and recommendations for consideration by the COP when providing guidance relevant to reducing the risks of loss and damage, where necessary, addressing loss and damage, including to the operating entities of the financial mechanism of the Convention, as appropriate; (iii) Facilitating the mobilisation and securing of expertise, and enhancement of support, including finance, technology and capacity-building, to strengthen existing approaches and, where necessary, facilitate the development and implementation of additional approaches to address loss and damage associated with climate change impacts, including extreme weather events and slow onset events; 6. Decides that the Warsaw international mechanism should complement, draw upon the work of and involve, as appropriate, existing bodies and expert groups under the Convention as well as on that of relevant organisations and expert bodies outside the Convention, at all levels; 7. Also decides that, in exercising the functions outlined in paragraph 5 above, the Warsaw international mechanism will, inter alia: (a) Facilitate support of actions to address loss and damage; (b) Improve coordination of the relevant work of existing bodies under the Convention; (c) Convene meetings of relevant experts and stakeholders; (d) Promote the development of, and compile, analyse, synthesise and review information; (e) Provide technical guidance and support; (f) Make recommendations, as appropriate, on how to enhance engagement, actions and coherence under and outside the Convention, including on how to mobilise resources and expertise at different levels; 8. Invites the Executive Secretary, in consultation with the President of the COP, to convene the initial meeting of the executive committee by March 2014, the meetings of which will be open to observers, and invite representatives of relevant international and regional organisations having the necessary skills in approaches to addressing loss and damage associated with the adverse effects of climate change, including extreme weather events and slow onset events; 9. Requests the executive committee to develop its initial two-year workplan for the implementation of the functions outlined in paragraph 5 above, including the scheduling of meetings, taking into account the issues outlined in decision 3/CP.18, paragraphs 6 and 7, for consideration at the forty-first sessions of the Subsidiary Body for Scientific and Technological Advice and the Subsidiary Body for Implementation (December 2014); 10. Requests the Subsidiary Body for Scientific and Technological Advice and the Subsidiary Body for Implementation to consider the composition of, and procedures for, the executive committee, and to make recommendations thereon for adoption by the COP at its 20th session (December 2014), with a view to finalising the organisation and governance of the executive committee; 11. Invites relevant international and regional organisations, institutions and processes to integrate, where appropriate, measures to address the impacts of climate change and to explore and strengthen synergies in the context of addressing loss and damage associated with the adverse impacts of climate change, especially in particularly vulnerable developing countries; 12. Also invites Parties to work through the United Nations and other relevant institutions, specialised agencies and processes, as appropriate, to promote coherence at all levels in approaches relevant to addressing loss and damage associated with the adverse effects of climate change, including extreme events and slow onset events; 13. Further invites Parties to strengthen and, where appropriate, develop institutions and networks at the regional and national levels, especially in particularly vulnerable developing countries, to enhance the implementation of relevant approaches to addressing loss and damage in a manner that is country-driven, encourages cooperation and coordination between relevant stakeholders and improves the flow of information; 14. Requests developed country Parties to provide developing country Parties with finance, technology and capacity-building, in accordance with decision 1/CP.16 and other relevant decisions of the COP; 15. Decides to review the Warsaw international mechanism, including its structure, mandate and effectiveness, at the twenty-second session of the Conference of the Parties, with a view to adopting an appropriate decision on the outcome of this review; 16. Takes note of the budgetary implications of the activities to be undertaken by the secretariat pursuant to the provisions contained in this decision; 17. Requests that the actions of the secretariat called for in this decision be undertaken subject to the availability of financial resources.'

*Third World Resurgence No. 279/280, November/December 2013, pp 15-18