Globally, the weather-related extreme events and associated loss and damages (L&D) have increased significantly. With high confidence, the Fifth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC AR5) published in 2014 stated that the risks associated with those extreme weather events will further increase, putting the disproportionate burden of climate stress and associated losses to the most vulnerable poor countries and communities.

In the face of growing weather extremes and associated L&Ds, the global policy stakeholders at the UNFCCC negotiation have long been in discussion for agreeing on a comprehensive ‘multi-window mechanism’ for addressing L&D, however, the differentiated political position on the demand for ‘loss compensation’ from the historical liability context of the developed countries made the process considerably delayed.