WHAT IS AT STAKE UNDER THE THIRD REVIEW OF THE WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

By Heidi White, Teo Ormond-Skeaping and Hyacinthe Niyitegeka.

21/6/25

Flooding in Meng District, Thailand, on October 3, 2022. The third review of the WIM is taking place at the 2025 Bonn Climate Conference. It is an important opportunity to enhance coordination between Loss and Damage entities and massively scale up Loss and Damage finance to ensure that no-one is left behind. (Narongpon Chaiyaburt / shutterstock)

This blog is informed by the Loss and Damage Collaboration’s key messages on the third review of the Warsaw International Mechanism for Loss and Damage and takes into account the evolving priorities of developing countries. For detailed messages and context see here, for more detailed reporting on the negotiations see our daily policy updates.


The sixty-second session of the Subsidiary Bodies (SB 62) is ongoing at the 2025 Bonn Climate Conference, in Bonn, Germany. The key negotiating items on Loss and Damage are the third review of the Warsaw International Mechanism for Loss and Damage (WIM) and consideration of the 2024 joint annual report of the WIM’s Executive Committee (ExCom) and the Advisory Board of the Santiago Network

What is the WIM?

The WIM was established at COP 19 in Warsaw, Poland, in 2013. It has three functions: enhancing knowledge and understanding; strengthening dialogue, coordination, coherence and synergies; and enhancing action and support, including finance, technology and capacity building to address loss and damage. The implementation of these functions is guided by an Executive Committee (ExCom). Under the ExCom, there are five Thematic Expert Groups on: slow onset events; non-economic losses; comprehensive risk management; human Mobility including displacement; and action and support. The Santiago Network for averting, minimising and addressing loss and damage (Santiago Network) is also under the WIM.

Why is the WIM being discussed at SB 62?

At SB 62, Parties are negotiating two draft decisions to forward for consideration and adoption at COP 30 / CMA 7, in Belem, Brazil in November, 2025. The first is to reflect the outcome of the third review of the WIM, and the second is based on consideration of the first joint annual report of the ExCom and the Santiago Network. These two agenda items were originally scheduled to take place at COP 29 / CMA 6, in Baku, Azerbaijan in November, 2024. However, Parties were unable to achieve consensus on the decisions to be taken. As a result the outcome was largely a procedural conclusion with rule 16 of the UNFCCC draft rules of procedure applied enabling negotiations to resume at SB 62.

What are Parties required to do?


The third review of the WIM is to be conducted based upon the terms of reference agreed in June 2024 at the 60th Meeting of the Subsidiary Bodies (SB 60). The terms of reference indicate that Parties are to assess the progress in implementing the WIM’s functions, evaluate its performance and achievements, and consider the long-term vision of the mechanism. This includes scrutinising the activities conducted by the WIM through its ExCom, thematic expert groups and the Santiago Network. The review is also required to examine coordination, complementarity and synergies between the rapidly evolving architecture of Loss and Damage institutions under the United Nations Framework Convention on Climate Change (UNFCCC) and its Paris Agreement. This includes considering how the Fund for Responding to Loss and Damage (FRLD) and Loss and Damage Funding Arrangements, the Santiago Network and the ExCom might collaborate and align work to avoid duplication and reduce fragmentation. 

Meanwhile, the joint annual report and its two addenda containing the ExCom and the Santiago Network annual report contain information about the progress of the work of the respective bodies and recommendations for the Conference of the Parties (COP) and Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) to consider and adopt.
  

Why is this important?


Annual reporting by bodies under the United Nations Framework Convention on Climate Change (UNFCCC / Convention) and its Paris Agreement is a common practice, and is critical to facilitating regular review of the implementation of the Convention and to, in turn, promote effective implementation. The joint annual report (often referred to in the negotiations as “JAR”) provides this regular review opportunity. Meanwhile, WIM reviews are conducted less frequently, occurring every five years. These are important opportunities for taking stock of a longer term period of work and considering a bigger picture vision to advance ambitious and innovative ideas to drive the work on Loss and Damage forward.

Ultimately the WIM review is about sending the right political signals to push Loss and Damage institutions to scale up their work. This is needed to meet the urgency and enormity of the loss and damage already being caused by the climate crisis having reached an average temperature increase of at least 1.5°C (2.7° Fahrenheit) above pre-industrial levels. Especially when recognising the quantified midpoint average for the expected Loss and Damage funding needs of developing countries in 2025 alone are predicted to be a staggering 395 [128–937] billion USD.    

The first review which took place in 2016 at COP 22 recommended that countries establish a Loss and Damage contact point and the preparation of a technical paper on sources of financial support for loss and damage and the modalities for accessing support. The following year at COP 23, it was agreed this paper would be informed by the Suva Expert Dialogue and later at COP 27 these two outputs were recognised in the decision establishing the FRLD. During the second review, which took place in 2019 at COP 25, the Santiago Network was established under the WIM to catalyse technical assistance from a membership of  organisations, bodies, networks and experts (OBNEs) for implementation in developing countries and the communities within them. The Action and Support Expert Group (ASEG) was also established under the ExCom at that time. 

When considering what progress can be made through the third review of the WIM, it is important to reflect on what has been achieved in previous reviews, to build on these advancements and consider how to continue to enhance implementation. The first two reviews on the WIM saw critical gains with agreement on mandates to advance the work on action and support, particularly finance. However, there is an outstanding question of what will be the major outcomes of the third WIM review that can carry the work forward? 

What has been happening in Bonn?

In Bonn, our expectations were that Parties would finalise a draft decision on the WIM review so that a Loss and Damage decision could be taken on the first day of COP 30. We considered that doing so would send a strong signal on Loss and Damage in much the same way that the operationalisation of the Fund for Responding to Loss and Damage (FRLD) did at COP 28 in Dubai. As the 2024 JAR is considered a source of input to the review, we thought that a swift decision could be taken on this report either by considering the WIM review and the JAR jointly or by taking a separate short decision on the JAR and focusing attention on a comprehensive decision on the WIM review.

Parties were proactive in working together to advance the work despite the delay in the adoption of the agenda of SB 62. When the first negotiations session opened they requested the co-facilitators Pasha Carruthers (Cook Islands) and Cornelia Jaeger (Austria) to begin drafting two texts. First, Parties suggested that a draft decision text be prepared on the JAR and indicated some basic elements that have now been reflected in an initial draft text prepared by the co-facilitators (Version 19/6/2025 21:00). Parties then provided guidance to the co-facilitators to also prepare a WIM review text according to the six headings from the informal note that the co-facilitators had provided in Baku, including: 

  • Preamble
  • Procedural
  • Enhancing implementation
  • Enhancing complementarity and coordination
  • Enhancing accessibility and outreach
  • Enhancing finance and other support

Parties then indicated some text that could be drafted already under these headings which were common elements raised by Parties. These have now been reflected in an initial draft text prepared by the co-faciliators (Version 20/6/2025 10:00).

In the meantime, Parties have been working to exchange views on additional elements to be included in the decision on the WIM review. Additional elements have been conveyed to the co-facilitators to update the initial text, and we are expecting this text to be uploaded to the webpage on Monday. These elements include, for example, details on enhancing implementation at the national level and both under and outside the WIM. There is also language on enhancing the accessibility of WIM knowledge products (e.g. the ExCom’s technical guide on non-economic losses) including translation of resources into the six UN languages and additional languages, where appropriate. Finally, there are several elements on enhancing finance and other support that are critical including on enhancing financial support, recognising the progress made including delivery on the technical assistance request made by Vanuatu, and strengthening the work already done by the bodies such as updating the guidelines already agreed by the Santiago Network to make them more easily accessible.

The final component of the work is ongoing negotiations among Parties in a small group setting on five outstanding issues which needed further discussion and exchange of views:

  1. National planning on loss and damage, including voluntary guidelines on including Loss and Damage in NDCs;
  2. Support for quantifying loss and damage needs;
  3. State of Loss and Damage Report;
  4. Scaling up Loss and Damage finance;
  5. Carrying forward Loss and Damage outcomes in the first Global Stocktake (GST).

What are our expectations for the final outcomes?


We expect the initial decision proposed on the joint annual report to be acceptable to Parties. However, we look forward to the 2025 joint annual report —which will be considered at COP 30— having more substance to continue to drive the work of these bodies forward.

Regarding the WIM, the core elements we expect are:

  • A regular independent and scientific global State of Loss and Damage Report (see this draft discussion paper for more details on what it could include) that includes information on the scale of the challenge that the global community is facing and solutions.
  • Guidance for countries on including loss and damage in national planning, including developing guidelines to assist countries to report on Loss and Damage in Nationally Determined Contributions (NDCs).
  • An acknowledgment of the importance of and clarity on coordination and complementarity between the ExCom, the Santiago Network and the Loss and Damage Funding Arrangements including the FRLD to avoid the duplication of efforts and to reduce fragmentation.
  • A recognition of the urgent and immediate need to massively scale up Loss and Damage action and support, including finance, technology, and capacity-building. 

On the Santiago Network we need to see: 

  • Strong encouragement for Parties to make technical assistance requests to the Santiago Network as Vanuatu, Iraq and Mozambique have done. In the case of Vanuatu, their request focuses on the development of a long-term nationally determined programme to address loss and damage. Whilst Iraq’s request focuses on the development of a comprehensive programme to assess and calculate the economic costs of loss and damage resulting from the impacts of the climate crisis on Iraq’s agriculture and water resources sectors.
  • Encouragement for the Secretariat of the Santiago Network to develop procedures for technical assistance requests that require urgent response and to deliver technical assistance with urgency.

  • Encouragement to the Santiago Network to diversify its membership to include many more local and regional OBNEs. Without a diverse and inclusive membership, the Santiago Network will not be able to facilitate the delivery of technical assistance by local and regional actors with context specific expertise of averting, minimising and addressing loss and damage.

  • An expression of concern about the operational costs of the Santiago Network including the increase in management fees from 3.76 per cent to 4.18 per cent and the inclusion of an additional fee of 13 per cent by the host consortium the United Nations Office for Project Services (UNOPS) and United Nations Office for Disaster Risk Reduction (UNDRR). We also need to see a reminder that the future review processes including review of the memorandum of understanding with UNOPs and UNDRR in 2028 and the independent review to be commissioned by the Santiago Network secretariat will need to consider the sustainability of funding for the network.

  • Recognition of the commitment to a lean cost-efficient organisational structure for the Santiago Network and a commitment to a small decentralised core team of staff at the Secretariat of the Santiago Network and effective use of regional offices.
  • Recognition of the Glasgow Climate Pact commitment that the Santiago Network “will” be provided with funds and that developed country Parties were urged to provide these funds both for the network's operation and for the provision of technical assistance. 

On the Executive Committee of the WIM we need to see: 

  • An expression of concern about the progress of work under the ExCom’s Expert Group on Action and Support. There should be concrete guidance to steer the expert group as it develops its new Plan of Action and revises its membership taking into account the evolving landscape. 

  • Increased resources for the UNFCCC to ensure it can effectively deliver Secretariat services for the ExCom. We note that budget constraints have hindered the work and can be highly limiting for the ExCom meeting its full potential, for example, translation of ExCom knowledge products into all UN languages.
  • A clear timeline for the ExCom to finalise the development of voluntary guidelines for Loss and Damage information to inform the preparation of the biennial transparency reports (BTRs). This mandate from the GST at COP 28 in Dubai in 2023 is advancing but needs to be finalised. We heard in the ExCom stakeholder consultation event  that countries have challenges with reporting loss and damage information and need guidance on how to navigate reporting methodologies, data availability and quantification of needs.
  • A clear timeline for the delivery by the UNFCCC Secretariat of a synthesis report on information on Loss and Damage provided by Parties in their BTRs. The first GST, (see paragraph 134, page 18) requested the secretariat to prepare, on a regular basis, a synthesis report for consideration by the ExCom, on information on loss and damage provided by Parties in their BTRs and other national reports under the Paris Agreement. The WIM review is an opportunity to call for an update on when this synthesis will be delivered.  

Looking at the big picture, the third WIM review is a critical opportunity to ensure that the Loss and Damage institutions under the UNFCCC and its Paris Agreement are responding to loss and damage in a way that undeniably confirms that Loss and Damage is the third pillar of climate action alongside adaptation and mitigation. 

The review is about making Loss and Damage visible and sustaining the momentum that has gathered since the establishment of the Santiago Network and FRLD. This is critical for the long term vision of Loss and Damage and ensuring that Loss and Damage response reaches the scale of the needs of developing countries and can match the speed and breadth of the impacts of the escalating climate crisis. As the Prime Minister of Vanuatu, the Hon. Jotham Napat made clear in a video statement released on the first day of SB 62, the WIM is not "finished" yet.

Heidi White is an Australian Lawyer and independent consultant. She co-hosts monthly, and additional calls and communications as required to consult with the team on key issues unfolding with the Santiago Network. In collaboration with the team, she develops briefs and background papers to support progress in the negotiations. She also is available on an ongoing basis to advise members of the latest developments and provide inputs into external work being developed.

Teo Ormond-Skeaping works to coordinate the L&DC's Advocacy and Outreach program Human Mobility and Displacement Working Group and Art & Culture programs. He closely follows Loss and Damage negotiations as well as the Board of the FRLD, the Advisory Board of the Santiago Network and the WIM ExCom. 

Hyacinthe Niyitegeka is a climate negotiator with experience in the field of Loss and Damage, as well as in broader climate policy. She serves as coordinator of the L&DC and co-leads the L&DC Santiago Network project.

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