Loss and Damage

A key issue in the crafting of the Paris Agreement at COP21 is the inclusion or exclusion of Article 5 known as “Loss and Damages.”  This article seeks to formalize an international mechanism that provides financial and non-economic support for the losses and damages that communities experience due to the irreversible and permanent effects of climate change, especially to the most vulnerable in developing countries. 

            
Negotiators from G77+China countries and from the Like-Minded Developing Countries block introduced Article 5 to draft texts of the agreement in October, but in other versions of the text, supported by the United States and other developed countries, the Loss and Damage clause is completely excluded. 

            
Developing countries argue that in addition to efforts to mitigate and adapt, mechanisms must be in place to compensate those effected for the loss of their livelihoods and property, especially by countries most responsible for the emissions that have caused this issue. They site instances of the submergence of small island nations, desertification of agricultural land, and melting glacial sources of fresh water supplies that impact communities and individual’s ability to continue their current life, oftentimes existential crises that cannot be adapted to.  Programs offer risk insurance, preparatory support and assistance in managing losses, and migration and relocation related funds. 

            
Sponsors of the text without Article 5, like the United States, have commented that they support the principle of Loss and Damage, but they will resist the inclusion of language that makes any mention to liability for climate change or compensation requirements.  They argue that Article 5 is redundant in the agreement, and that the loss and damage principle is covered within the articles on adaptation. 

            
In 2013, the UNFCCC agreed upon the Warsaw Mechanism which implements a program that does offer some support and cooperation for climate change related loss and damage.  But negotiators of many nations have urged that the loss and damage framework must be incorporated in the Paris Agreement to ensure the continuation of support for climate change victims post 2020.  The Paris Agreement is set to be a durable document that will govern the future of climate change response in the areas of adaptation, mitigation, and finance. 

Compromise is possible and has been hinted at from observers, as negotiators decide between the inclusion or exclusion of Article 5 and Loss and Damages.  A hybrid of the Article, one that recognizes the need for Loss and Damage framework, but does not make any specific commitments or distinguish any direct responsibility, is predicted and hoped for in the creation of a lasting Paris Agreement.