Polluters’ Pay Pact Signed by South Asian Workers

In move on Labour Day 2025, ten major worker groups from India, Sri Lanka, Bangladesh, and Nepal signed the Polluters’ Pay Pact in New Delhi. This agreement urges governments to impose new taxes on fossil fuel companies for their greenhouse gas emissions. The aim is to channel these funds into climate adaptation measures for communities suffering from climate change effects, such as extreme weather events. The signing coincided with a severe heatwave affecting South Asia and followed the World Meteorological Organization’s announcement that 2024 was the warmest year recorded.

Background of the Pact

The Polluters’ Pay Pact was initiated by the Workers’ Collective for Climate Justice — South Asia and Greenpeace India. It reflects growing concerns over the impacts of climate change on vulnerable worker groups. The pact seeks to hold fossil fuel companies accountable for their role in global warming.

Impact of Climate Change on Workers

Worker representatives brought into light the disproportionate risks faced due to extreme weather. Heatwaves and floods have led to reduced earnings and health issues. Street vendors, particularly food vendors, are severely affected. Their products spoil in extreme heat, and customer footfall decreases .

Health and Economic Consequences

A report by Greenpeace India revealed that a 1°C rise in temperature could reduce informal workers’ earnings by up to 19%. Income losses may reach 40% due to unbearable heat. Concurrently, medical expenses for these workers increased by an average of 14%, creating a “climate-health-economic nexus.” This situation pushes many into debt with informal lenders.

Challenges Faced by Informal Workers

Informal workers, including domestic workers, face unique challenges. Many are not recognised as workers by the government, leaving them excluded from heat action plans. Domestic workers often endure unbearable conditions, such as sleeping on balconies where heat from air conditioners accumulates.

Gender Disparities in Impact

Women informal workers bear an unequal burden during heatwaves. Many avoid drinking water to limit the need for unsafe public toilets, leading to chronic dehydration and related health issues. This phenomenon has been termed a “silent epidemic” by Greenpeace.

Call for Government Action

Activists stress the need for government action to implement inclusive adaptation measures. Cooling centres, shaded areas, and access to clean water and medical care are crucial for survival during extreme heat. The call is for a convergence of workers’ struggles against climate change for meaningful impact.

Future Directions

The Polluters’ Pay Pact is a step towards climate justice. It aims to protect those least responsible for climate change but who suffer the most. The focus is on ensuring that funds from fossil fuel taxes support vulnerable communities in adapting to changing climate conditions.

Questions for UPSC:

1. Examine the socio-economic impacts of climate change on informal workers in South Asia.
2. Discuss the implications of the Polluters’ Pay Pact for climate justice in the region.
3. Analyse the role of trade unions in advocating for worker rights in the context of climate change.
4. Critically discuss the health impacts of extreme heat on women workers in informal sectors.

Answer Hints:

1. Examine the socio-economic impacts of climate change on informal workers in South Asia.

1. Informal workers are highly vulnerable to extreme weather events, leading to reduced earnings and job security.
2. Increased temperatures can cause up to a 40% loss in income for informal workers, particularly in sectors like street vending.
3. Health issues, including chronic dehydration and heat-related illnesses, arise due to inadequate working conditions.
4. Workers often face harassment when trying to implement protective measures against extreme weather.
5. Debt from informal lenders increases as workers struggle to cope with rising medical expenses and loss of income.

2. Discuss the implications of the Polluters’ Pay Pact for climate justice in the region.

1. The pact holds fossil fuel companies accountable for greenhouse gas emissions, promoting corporate responsibility.
2. Funds generated from taxes on fossil fuel companies are intended for climate adaptation measures for vulnerable communities.
3. It aims to address the inequities faced by workers who are least responsible for climate change yet suffer its impacts the most.
4. The agreement encourages solidarity among worker groups across South Asia, amplifying their collective voice for climate justice.
5. It represents a shift towards recognizing the intersection of labor rights and environmental justice in policy-making.

3. Analyse the role of trade unions in advocating for worker rights in the context of climate change.

1. Trade unions serve as a collective voice for workers, advocating for their rights and better working conditions amid climate impacts.
2. They play important role in raising awareness about the specific challenges posed by climate change to vulnerable worker groups.
3. Unions mobilize protests and campaigns to demand government action and implementation of effective climate policies.
4. They help in negotiating with employers to ensure protective measures are in place for workers facing extreme weather conditions.
5. Trade unions also push for the inclusion of informal workers in climate action plans, ensuring no one is left behind.

4. Critically discuss the health impacts of extreme heat on women workers in informal sectors.

1. Women workers face unique challenges, including chronic dehydration from avoiding drinking water to limit bathroom needs.
2. Heatwaves exacerbate health issues, leading to urinary tract infections and other heat-related ailments.
3. Many women are excluded from health and safety regulations, leaving them without adequate support during extreme heat events.
4. The economic burden of increased medical expenses disproportionately affects women, pushing them further into poverty.
5. Addressing these health impacts requires targeted interventions in public health and workplace safety for women workers.