This report is a contribution to the debate and the work to establish an international mechanism on loss and damage in order to support all actors involved in addressing this important issue. It addresses: the reasons why governments must act urgently to prevent and address loss and damage, asserting that disaster risk reduction, leading to better and more preparedness, is essential for ex ante reduction of loss and damage; and the reasons why we need an international mechanism on loss and damage, outlining the specific elements, functions and modalities of such an international mechanism. The report calls attention to the consequences of inadequate action by developed countries to follow through on their commitment to support the adaptation needs of developing countries under the United Nations Framework Convention on Climate Change (UNFCCC). It argues that the failure to adequately mitigate and the failure to sufficiently support adaptation have resulted in vulnerable communities and countries facing increasing loss and damage due to the impacts of climate change.