Maarg Manthan · Topic 18.23

Warsaw International Mechanism for Loss and Damage

Environment & Ecology › International Environmental Governance and Conventions · Topic 18.23

The Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) was established at the 19th Conference of the Parties (COP19) to the UNFCCC in Warsaw, Poland, in November 2013, to address loss and damage associated with the impacts of climate change, including extreme events and slow onset events, in developing countries that are particularly vulnerable. Loss and damage refers to harms that cannot be avoided by mitigation or adaptation, such as lives lost, cultural heritage lost or land lost to rising seas. The WIM has three functions: enhancing knowledge and understanding of comprehensive risk management; strengthening dialogue, coordination and synergies among stakeholders; and enhancing action and support, including finance, technology and capacity building. It is guided by an Executive Committee (ExCom). The mechanism was reviewed in 2019 and confirmed under Article 8 of the Paris Agreement (2015), which recognises loss and damage but states that it does not provide a basis for liability or compensation. At COP25 in Madrid (2019), the Santiago Network was set up to provide technical help. At COP27 in Sharm el-Sheikh (2022), parties agreed to create a fund for loss and damage, which was made operational at COP28 in Dubai (2023), hosted by the World Bank with a board and pledges of about US$700 million; developing countries want much larger, predictable funds.

5 min read · UPSC Prelims · Environment & Ecology · International Environmental Governance and Conventions

At a Glance

Set up COP19 Warsaw, 2013
Body Executive Committee
Paris link Article 8
Network Santiago Network, 2019
Fund agreed COP27, 2022
Exam link UPSC Prelims, Environment & Ecology: International Environmental Governance and Conventions

Where Does It Fit?

This topic follows the Marrakesh conference and covers one of the most contested issues in the climate talks. It links to climate finance and CBDR. Previous topic: Marrakesh Climate Change Conference. Next topic: Mission Innovation (Clean Energy Initiative).

What Is the Warsaw Mechanism and How Does It Work?

Feature	Details
Establishment	COP19, Warsaw, November 2013
Scope	Loss and damage from climate impacts, including extreme events and slow onset events such as sea level rise and desertification
Function 1	Enhance knowledge and understanding of comprehensive risk management approaches
Function 2	Strengthen dialogue, coordination, coherence and synergies among stakeholders
Function 3	Enhance action and support, including finance, technology and capacity building
Executive Committee	Guides the work of the mechanism; reports to the COP and the CMA
Paris Agreement	Article 8 recognises loss and damage and confirms the WIM; para 51 of the decision says it does not involve or provide a basis for liability or compensation

What Has Followed Since?

Santiago Network: agreed at COP25 in Madrid, 2019, to catalyse technical assistance
Glasgow Dialogue: COP26 launched dialogue on funding arrangements
COP27 fund: Sharm el-Sheikh in 2022 agreed to establish a fund for loss and damage
COP28 operationalisation: Dubai in 2023 adopted the arrangements on day one; World Bank to host; pledges of about US$700 million
Board: Board of the Fund meets to design criteria and access
Eligibility: developing countries particularly vulnerable to adverse effects
Demand: developing countries want new, additional, grant-based finance
Divergence: developed countries stress voluntary contribution and avoid liability

What Else Should You Remember?

Loss and damage: harm from climate impacts that cannot be avoided by mitigation or adaptation
Economic losses: damage to property, crops, infrastructure
Non-economic losses: loss of life, health, culture, biodiversity and sense of place
Slow onset events: sea level rise, salinisation, glacier retreat, desertification, ocean acidification
Rapid onset: cyclones, floods and heat waves
Small island states: AOSIS pushed for loss and damage since 1991
Vanuatu proposal: 1991 proposal for an insurance pool
Cancun: COP16 in 2010 established a work programme on loss and damage
Doha: COP18 in 2012 agreed to set up institutional arrangements
Warsaw: COP19 created the WIM
Paris decision para 51: rules out liability and compensation
ExCom: has 20 members including reps of developed and developing countries
Santiago Network: hosted by UNDRR and UNOPS in Geneva
Fund: the Fund for responding to Loss and Damage, FRLD
Pledges: UAE, Germany, the UK, the US, Japan and others made initial pledges
Host: World Bank as an interim host with a Financial Intermediary Fund
Board seats: a 26-member board with more developing countries than developed
Target: Estimates of needs run into hundreds of billions of dollars a year
India’s stand: supports the fund and says it should rest on historical responsibility and CBDR
Link to previous: see Marrakesh Climate Change Conference
Link to next: see Mission Innovation (Clean Energy Initiative)
Link to finance: see Global Climate Finance Architecture
Caution: the fund’s pledges and rules are still evolving, so check the latest UNFCCC decisions
Exam hint: learn COP19 for WIM, COP25 for Santiago Network, COP27 for fund and COP28 for operationalisation
Vulnerable regions: small island states, least developed countries and parts of Africa and South Asia face the most climate-related loss
Funding gap: needs for loss and damage are estimated at hundreds of billions of dollars a year, far above current pledges
Insurance tools: regional risk pools such as the Caribbean Catastrophe Risk Insurance Facility cover some losses
Technical assistance: the Santiago Network matches requests from countries with experts, for example on risk assessment and rebuilding after cyclones
Human mobility: loss and damage also covers displacement and migration due to climate impacts

Why Does It Matter for the Exam?

WIM: COP19, 2013
Network: COP25
Fund: COP27, COP28
Current affairs link: Fund pledges
Common errors: treating loss and damage as compensation

As an analytical point, loss and damage is the climate justice issue that shows the gap between those who cause emissions and those who suffer the harm. The fund is a political breakthrough, but its size and rules decide whether it brings real relief.

Why Is This Topic Important?

Need Unavoidable harm
Body WIM
Money Fund

What Came Next?

The next topic covers Mission Innovation, the clean energy initiative. Next topic: Mission Innovation (Clean Energy Initiative).

Key People and Terms

WIM Warsaw International Mechanism
ExCom Executive Committee
L&D Loss and damage
FRLD Fund for Loss and Damage
SIDS Small Island Developing States
Slow onset Gradual climate impact

Exam Corner

Points to Remember

WIM set up at COP19, 2013.
Paris Article 8 covers it.
Santiago Network 2019.
Fund agreed COP27, operational COP28.
No liability or compensation basis.

Do Not Confuse With

Adaptation and loss and damage Avoiding harm versus unavoidable harm
WIM and the fund Mechanism versus money
Compensation and support Liability versus assistance

Memory Hook

Warsaw makes the mechanism, Madrid links the network, Egypt agrees the fund, Dubai starts it.

Mains Angle

Questions ask for the sequence of decisions. These points help.

Concept Unavoidable harm
Steps Warsaw to Dubai
Debate Liability

A Question You May Face

An original practice question, not a past paper question.

“What is the Warsaw International Mechanism? Discuss developments on loss and damage up to the creation of the fund.”

How to Answer

Concept L&D.
WIM COP19.
Steps Network, fund.
Debate Liability.

GS Relevance

Prelims: WIM, Paris Article 8, fund. GS Paper 2: climate justice and finance.

Frequently Asked Questions

What is the Warsaw International Mechanism?

The Warsaw International Mechanism for Loss and Damage is a body under the UNFCCC, set up at COP19 in Warsaw in 2013, to address loss and damage from climate change impacts, including extreme events and slow-onset events, in vulnerable developing countries. It promotes knowledge, dialogue and support through an Executive Committee.

What does loss and damage mean in climate policy?

Loss and damage means harm caused by climate change that cannot be avoided by mitigation or adaptation, such as lives lost, property destroyed, land lost to sea level rise or cultural and ecological values lost. It includes economic and non-economic losses from both sudden events and slow-onset processes.

How does the Paris Agreement treat loss and damage?

Article 8 of the Paris Agreement recognises the importance of averting, minimising and addressing loss and damage and confirms the Warsaw Mechanism. The accompanying decision, however, states that Article 8 does not involve or provide a basis for any liability or compensation, a point that developed countries insisted on.

What is the Santiago Network?

The Santiago Network, agreed at COP25 in Madrid in 2019 and operationalised later, is designed to catalyse technical assistance from organisations and experts to developing countries that need to avert, minimise and address loss and damage. Its secretariat is hosted by the UN Office for Disaster Risk Reduction and UN Office for Project Services in Geneva.

What happened to the loss and damage fund?

At COP27 in Sharm el-Sheikh in 2022, countries agreed to set up a fund for loss and damage. At COP28 in Dubai in 2023, they adopted the operational arrangements on the first day, with the World Bank as interim host, and several countries pledged about US$700 million. Developing countries say far more is needed.

PYQ Practice — Statement Analysis

1 The Warsaw Mechanism was set up in 2013.

True

At COP19.

2 Paris Article 8 provides a basis for compensation.

False

It says no liability or compensation.

3 The Santiago Network supports technical assistance.