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15 Feb 2026·Source: The Hindu
4 min
Environment & EcologyEconomyNEWS

Sitharaman: Polluters must pay for climate change mitigation efforts

Finance Minister stresses differentiated responsibility and technology cooperation at Munich conference.

Finance Minister Nirmala Sitharaman, speaking at the Munich Security Conference, advocated for differentiated responsibility among countries in mitigating climate change, based on the ‘polluter pays’ principle. She urged countries to share technologies commercially. Sitharaman highlighted the need to focus on resilience and adaptation, not just emissions control.

She mentioned India's increased GDP spending on climate action and emphasized that funding would be more challenging for African countries. Sheldon Whitehouse criticized the Trump administration's stance on climate change.

Key Facts

1.

Finance Minister Nirmala Sitharaman spoke at the Munich Security Conference.

2.

She advocated for differentiated responsibility among countries in mitigating climate change.

3.

She urged countries to share technologies commercially.

4.

India has increased the percentage of GDP spent on climate action over the last six years.

UPSC Exam Angles

1.

GS Paper 3: Environment and Ecology, Economic Development

2.

Connects to syllabus topics like environmental pollution, climate change, sustainable development, environmental governance

3.

Potential question types: Statement-based, analytical, conceptual

In Simple Words

The idea is simple: if you pollute, you pay for the cleanup. Finance Minister Nirmala Sitharaman said that countries that have polluted more in the past should contribute more to fighting climate change. This also means sharing technology to help everyone reduce pollution.

India Angle

In India, this means industries that pollute rivers or air should be held responsible for cleaning them up. It also means richer countries should help India and other developing nations adopt cleaner technologies.

For Instance

Think of it like a building where some residents use more electricity. Those residents should pay a higher electricity bill to cover the extra usage.

This ensures that those responsible for environmental damage take action to fix it, rather than passing the cost onto everyone else.

Polluters pay: Clean up your mess, or pay someone else to do it.

More Information

Background

The ‘polluter pays’ principle is a cornerstone of environmental law and policy. Its origins can be traced back to the early 1970s, gaining prominence during discussions on international environmental agreements. The principle essentially states that those who cause pollution should bear the costs of managing it to prevent damage to human health or the environment. This concept is closely linked to environmental economics, which seeks to internalize the external costs of pollution. Over time, the ‘polluter pays’ principle has evolved from a general concept to a more defined legal standard. It has been incorporated into numerous national laws and international treaties, including the Rio Declaration on Environment and Development in 1992. The principle's application varies across jurisdictions, with some countries adopting stricter interpretations than others. This evolution reflects a growing recognition of the need for environmental accountability and sustainable development. In India, the ‘polluter pays’ principle has been upheld by the Supreme Court in several landmark cases. The principle is often invoked in cases involving industrial pollution, hazardous waste management, and environmental damage. The National Green Tribunal (NGT), established in 2010, plays a crucial role in enforcing the ‘polluter pays’ principle and ensuring environmental compliance. The principle aligns with the constitutional mandate to protect and improve the environment under Article 48A and Article 51A(g) of the Indian Constitution. Internationally, the principle is a guiding force in climate change negotiations and agreements. The concept of Common But Differentiated Responsibilities (CBDR), enshrined in the United Nations Framework Convention on Climate Change (UNFCCC), acknowledges that while all countries have a responsibility to address climate change, developed countries have a greater responsibility due to their historical contributions to greenhouse gas emissions. This is a direct application of the ‘polluter pays’ principle on a global scale.

Latest Developments

Recently, there has been increased emphasis on holding corporations and governments accountable for their environmental impact. The rise of Environmental, Social, and Governance (ESG) investing reflects a growing awareness among investors about the importance of sustainable practices. This trend is pushing companies to adopt cleaner technologies and reduce their carbon footprint. However, the implementation of the ‘polluter pays’ principle faces several challenges. Determining the exact cost of environmental damage and assigning responsibility can be complex. There are also concerns about the potential impact on economic growth and competitiveness, particularly in developing countries. Balancing environmental protection with economic development remains a key challenge. Looking ahead, the ‘polluter pays’ principle is likely to play an even greater role in shaping environmental policy. As climate change impacts become more severe, there will be increased pressure on countries and companies to take responsibility for their emissions. The development of innovative financing mechanisms, such as carbon pricing and green bonds, will be crucial for mobilizing resources to address climate change. The ongoing debate about loss and damage funding at international climate negotiations highlights the complexities of applying the ‘polluter pays’ principle on a global scale. Developing countries are demanding that developed countries provide financial assistance to help them cope with the impacts of climate change, arguing that developed countries are historically responsible for the majority of greenhouse gas emissions.

Frequently Asked Questions

1. What is the 'polluter pays' principle and why is it important in the context of climate change mitigation, as highlighted by the Finance Minister?

The 'polluter pays' principle states that those who cause pollution should bear the costs of managing it to prevent harm to human health or the environment. It is important because it assigns financial responsibility for environmental damage, incentivizing cleaner practices and funding mitigation efforts. Finance Minister Nirmala Sitharaman emphasized this principle in the context of differentiated responsibility among countries.

2. How does the concept of 'differentiated responsibility' relate to the 'polluter pays' principle in international climate negotiations?

Differentiated responsibility acknowledges that countries have varying capacities and historical contributions to climate change. Applying the 'polluter pays' principle in this context means that developed countries, having historically contributed more to pollution, should take greater responsibility in funding and technology transfer for mitigation and adaptation efforts in developing countries.

3. What are the key facts about India's commitment to climate action, according to the Finance Minister's statement?

According to the Finance Minister, India has increased the percentage of its GDP spent on climate action over the last six years. She highlighted the need to focus on resilience and adaptation, not just emissions control. She also urged countries to share technologies commercially.

4. What are the potential implications of Donald Trump's return to the White House in 2025 for international climate agreements, considering Sheldon Whitehouse's criticism of his previous administration?

Sheldon Whitehouse criticized the Trump administration's stance on climate change. A potential return could lead to a reversal of climate policies, weakening of international agreements, and reduced commitment to global climate goals. This could hinder global efforts to mitigate climate change and achieve sustainable development goals.

5. How might funding for climate action be more challenging for African countries, as mentioned by the Finance Minister?

The Finance Minister highlighted that funding for climate action would be more challenging for African countries. This is likely due to factors such as limited financial resources, higher debt burdens, and greater vulnerability to the impacts of climate change, making it difficult for them to allocate sufficient funds to climate mitigation and adaptation efforts.

6. What are the key numbers associated with environmental funding in India for 2025-27, and what do they indicate about the government's priorities?

The funding for the Green India mission is ₹95.7 crore in 2025-26 and ₹212.5 crore in 2026-27. The allocation for the control of pollution for 2026-27 is ₹1,091 crore. These figures indicate a growing emphasis on environmental conservation and pollution control, reflecting the government's commitment to addressing climate change and promoting sustainable development.

7. What is Environmental, Social, and Governance (ESG) investing, and how does it relate to the 'polluter pays' principle?

Environmental, Social, and Governance (ESG) investing considers environmental, social, and governance factors alongside financial ones in the investment decision-making process. It relates to the 'polluter pays' principle by encouraging investment in companies that minimize their environmental impact and holding polluting companies accountable through reduced investment or divestment.

8. Why is the Finance Minister's call for technology sharing important in the context of climate change mitigation?

Technology sharing is crucial because it enables developing countries to access and implement cleaner technologies for reducing emissions and adapting to climate change impacts. Commercial sharing ensures sustainable and widespread adoption of these technologies, accelerating global efforts towards a low-carbon economy.

9. What recent developments highlight the increased emphasis on holding corporations and governments accountable for their environmental impact?

The rise of Environmental, Social, and Governance (ESG) investing reflects a growing awareness among investors about the importance of sustainable practices. This trend is pushing companies to adopt cleaner technologies and reduce their carbon footprint. This shows that there is increased emphasis on holding corporations and governments accountable for their environmental impact.

10. For UPSC Prelims, what is the significance of knowing the 'polluter pays' principle and its connection to climate finance?

Understanding the 'polluter pays' principle is crucial for answering questions related to environmental policy and international agreements. Knowing its connection to climate finance helps in understanding the mechanisms for funding climate mitigation and adaptation efforts, which are frequently tested in the exam.

Exam Tip

Remember the core idea: those who pollute must pay for the damage.

Practice Questions (MCQs)

1. Consider the following statements regarding the ‘polluter pays’ principle: 1. It is a fundamental principle of international environmental law, holding polluters responsible for the environmental damage they cause. 2. The principle is explicitly mentioned in the Indian Constitution as a fundamental duty of citizens. 3. The National Green Tribunal (NGT) in India is empowered to enforce the ‘polluter pays’ principle. Which of the statements given above is/are correct?

  • A.1 and 2 only
  • B.1 and 3 only
  • C.2 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: B

Statement 1 is CORRECT: The ‘polluter pays’ principle is a core tenet of international environmental law, ensuring that those responsible for pollution bear the costs of remediation. Statement 2 is INCORRECT: While the Indian Constitution emphasizes environmental protection through Article 48A and Article 51A(g), it does not explicitly mention the ‘polluter pays’ principle as a fundamental duty. These articles direct the State to protect the environment and obligate citizens to protect and improve the natural environment. Statement 3 is CORRECT: The National Green Tribunal (NGT) has the power to enforce the ‘polluter pays’ principle in India, as it is a key aspect of environmental jurisprudence.

2. Which of the following best describes the concept of 'Common But Differentiated Responsibilities (CBDR)' in the context of climate change?

  • A.All countries have the same responsibility to reduce greenhouse gas emissions, regardless of their historical contributions.
  • B.Developed countries have a greater responsibility to reduce emissions due to their historical contributions, while developing countries have a lesser responsibility.
  • C.Developing countries should focus on adaptation measures, while developed countries should focus on mitigation efforts.
  • D.Countries with larger populations have a greater responsibility to reduce emissions.
Show Answer

Answer: B

The concept of Common But Differentiated Responsibilities (CBDR) acknowledges that while all countries have a responsibility to address climate change, developed countries have a greater responsibility due to their historical contributions to greenhouse gas emissions. This principle is enshrined in the United Nations Framework Convention on Climate Change (UNFCCC).

3. Assertion (A): Finance Minister Nirmala Sitharaman advocated for differentiated responsibility among countries in mitigating climate change based on the ‘polluter pays’ principle. Reason (R): Developing countries require financial and technological assistance from developed countries to effectively implement climate mitigation measures. In the context of the above statements, which of the following is correct?

  • A.Both A and R are true, and R is the correct explanation of A.
  • B.Both A and R are true, but R is NOT the correct explanation of A.
  • C.A is true, but R is false.
  • D.A is false, but R is true.
Show Answer

Answer: A

Assertion A is TRUE: As per the news summary, Finance Minister Nirmala Sitharaman advocated for differentiated responsibility based on the ‘polluter pays’ principle. Reason R is TRUE: Developing countries often lack the financial resources and technological capabilities to effectively mitigate climate change, making assistance from developed countries crucial. Reason R is the CORRECT explanation of A: The ‘polluter pays’ principle implies that developed countries, having historically contributed more to pollution, should provide assistance to developing countries.

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