A new earth system climate model of intermediate complexity has been developed and its climatology compared to observations. The UVic Earth System Climate Model consists of a three‐dimensional ocean general circulation model coupled to a thermodynamic/dynamic sea‐ice model, an energy‐moisture balance atmospheric model with dynamical feedbacks, and a thermomechanical land‐ice model. In order to keep the model computationally efficient a reduced complexity atmosphere model is used. Atmospheric heat and freshwater transports are parametrized through Fickian diffusion, and precipitation is assumed to occur when the relative humidity is greater than 85%. Moisture transport can also be accomplished through advection if desired. Precipitation over land is assumed to return instantaneously to the ocean via one of 33 observed river drainage basins. Ice and snow albedo feedbacks are included in the coupled model by locally increasing the prescribed latitudinal profile of the planetary albedo. The atmospheric model includes a parametrization of water vapour/planetary longwave feedbacks, although the radiative forcing associated with changes in atmospheric CO2 is prescribed as a modification of the planetary longwave radiative flux. A specified lapse rate is used to reduce the surface temperature over land where there is topography. The model uses prescribed present‐day winds in its climatology, although a dynamical wind feedback is included which exploits a latitudinally‐varying empirical relationship between atmospheric surface temperature and density. The ocean component of the coupled model is based on the Geophysical Fluid Dynamics Laboratory (GFDL) Modular Ocean Model 2.2, with a global resolution of 3.6° (zonal) by 1.8° (meridional) and 19 vertical levels, and includes an option for brine‐rejection parametrization. The sea‐ice component incorporates an elastic‐viscous‐plastic rheology to represent sea‐ice dynamics and various options for the representation of sea‐ice thermodynamics and thickness distribution. The systematic comparison of the coupled model with observations reveals good agreement, especially when moisture transport is accomplished through advection. Global warming simulations conducted using the model to explore the role of moisture advection reveal a climate sensitivity of 3.0°C for a doubling of CO2, in line with other more comprehensive coupled models. Moisture advection, together with the wind feedback, leads to a transient simulation in which the meridional overturning in the North Atlantic initially weakens, but is eventually re‐established to its initial strength once the radiative forcing is held fixed, as found in many coupled atmosphere General Circulation Models (GCMs). This is in contrast to experiments in which moisture transport is accomplished through diffusion whereby the overturning is reestablished to a strength that is greater than its initial condition. When applied to the climate of the Last Glacial Maximum (LGM), the model obtains tropical cooling (30°N‐30°S), relative to the present, of about 2.1°C over the ocean and 3.6°C over the land. These are generally cooler than CLIMAP estimates, but not as cool as some other reconstructions. This moderate cooling is consistent with alkenone reconstructions and a low to medium climate sensitivity to perturbations in radiative forcing. An amplification of the cooling occurs in the North Atlantic due to the weakening of North Atlantic Deep Water formation. Concurrent with this weakening is a shallowing of, and a more northward penetration of, Antarctic Bottom Water. Climate models are usually evaluated by spinning them up under perpetual present‐day forcing and comparing the model results with present‐day observations. Implicit in this approach is the assumption that the present‐day observations are in equilibrium with the present‐day radiative forcing. The comparison of a long transient integration (starting at 6 KBP), forced by changing radiative forcing (solar, CO2, orbital), with an equilibrium integration reveals substantial differences. Relative to the climatology from the present‐day equilibrium integration, the global mean surface air and sea surface temperatures (SSTs) are 0.74°C and 0.55°C colder, respectively. Deep ocean temperatures are substantially cooler and southern hemisphere sea‐ice cover is 22% greater, although the North Atlantic conveyor remains remarkably stable in all cases. The differences are due to the long timescale memory of the deep ocean to climatic conditions which prevailed throughout the late Holocene. It is also demonstrated that a global warming simulation that starts from an equilibrium present‐day climate (cold start) underestimates the global temperature increase at 2100 by 13% when compared to a transient simulation, under historical solar, CO2 and orbital forcing, that is also extended out to 2100. This is larger (13% compared to 9.8%) than the difference from an analogous transient experiment which does not include historical changes in solar forcing. These results suggest that those groups that do not account for solar forcing changes over the twentieth century may slightly underestimate (∼3% in our model) the projected warming by the year 2100.