Progress reported on key issue of loss and damage

Negotiators are edging towards a compromise on one of the most divisive issues between countries at the COP21 climate change talks in Paris.

"Loss and damage" is the idea that compensation should be paid to vulnerable states for climate-related events that they cannot adapt to.

The issue has provoked heated arguments and walkouts at previous conferences.But here in Paris, negotiators from the US and small island states are said to be "closer" to an agreement.

While the vulnerable countries believe there are many impacts of climate change that they can adapt to, they have been seeking a mechanism that would compensate them for those events that they cannot cope with. They believe the developed nations bear a responsibility for the losses and damages that might be caused by extreme events in the future. The very idea is anathema to the US and the EU, among others. They are concerned that if liability and compensation were linked to this, it could become a massive legal and financial headache.

Poorer countries have come to COP21 looking to have loss and damage inserted in the legally binding text of the main agreement.

In an effort to find a compromise, the US has been meeting with the AOSIS group, representing 44 small island states.

Speaking at a news conference in Paris on Friday, US lead negotiator Todd Stern said that compensation and liability was a "line we can't cross" but also indicated that progress was being made.

The constructive spirit seems to be leading to a trade-off where the issue of loss and damage will be inserted in the main body of the agreement but the language will rule out issues of compensation.

"I think we can come up with something that allays the fears of the EU and US where liability and compensation is concerned without us giving up any rights that we currently enjoy under existing international agreements," another Us negotiator said.