D. [Risk management and risk reduction strategies, including risk sharing and transfer mechanisms such as insurance: International Mechanism to Address Loss and Damage Risks1
17. An international mechanism to address the unavoidable loss and damage from the adverse effects of climate change [and the impact of the implementation of response measures] is hereby established.
18. The purpose of the international mechanism shall be: to support developing country Parties, especially those that are particularly vulnerable, in building resilience by addressing the risks associated with climate-related extreme weather events; and to provide compensation and rehabilitation for loss and damage resulting from climate-related slow-onset events, including sea level rise, increasing temperatures and ocean acidification.
19. The international mechanism shall consist of the following components:
(a) An International Insurance Facility to address risks associated with climate-related extreme weather events incorporating measures to reduce, manage and prevent risk;
(b) A Compensation and Rehabilitation component for climate-related slow onset events.
20. The international mechanism shall be funded through the financial mechanism of the Convention.
21. The international mechanism shall be subject to the authority and guidance of the COP and be supervised by an executive board as established in section E below.
22. The COP shall elaborate modalities and procedures for the international mechanism, consistent with the principles and objectives of the Convention.
23. Participation under the international mechanism, including in the components mentioned above, may involve private and/or public entities, and shall be subject to whatever guidance may be provided by the executive board of the mechanism.
24. As provided by Article 7.2(a) of the Convention, the COP shall periodically review the operation of the international mechanism. Such reviews shall be coordinated with other pertinent reviews under the Convention. The first review should take place no later than 2015 and must be informed by the experiences and observations of Parties, the findings of the Fifth Assessment Report of the IPCC and other relevant scientific information.]
