Exploring Climate Just Transition and Resilient Livelihoods: A Pathway to Financial Inclusion for Survivors of Trafficking

#JustTransition- A Just Transition framework aims to ensure that the transition to a sustainable and climate-resilient economy is fair and inclusive, leaving no one behind.?

“All countries and all people must have equal opportunities to harness this transition and benefit from it. Transitions must be fair, inclusive, and just for everyone, leaving no one behind. That is the very spirit of the Paris Agreement.”??- UN Climate Change Executive Secretary Simon Stiell

5 years ago, when Sanjog envisioned Kaarya, the #Livelihoods & #FinancialInclusion Programme in collaboration with its grassroots level partners PAT, HELP & BBSS, and #Survivors & #SurvivorCollectives, ‘#ClimateResilience’ remained a missing piece. In the past year, through various networking, learning, and research initiatives, Sanjog has realised the importance of incorporating the Climate-Just Transition Narrative not only in its financial empowerment programme but across all programmes and organisational strategies.?

A #Climate-JustTransition movement works towards building #sustainableeconomies that also seeks to rectify social and economic inequalities while mitigating effects of #climatechange - offering a potential pathway for addressing the economic and social vulnerabilities of survivors of trafficking.?

Intersection of Climate Change & Trafficking

Climate change exacerbates many socio-economic vulnerabilities of survivors of trafficking & #sexworkers, particularly in regions susceptible to environmental disasters. Kaarya, Sanjog’s livelihoods & financial inclusion programme works directly with survivors of trafficking, commercial sexual exploitation, and sex work primarily in the states of West Bengal & Andhra Pradesh.

In these 2 states, droughts, floods, cyclones, and rising sea levels displace thousands, leaving them without access to secure employment, social protection, or basic financial services. Traffickers exploit these precarious conditions, luring vulnerable individuals into forced labour or sexual exploitation with false promises of safety or economic stability. Lack of access to resources like land, clean water, or sustainable jobs forces families to make desperate decisions, including migrating to urban areas, where the risk of exploitation is often heightened.?

Many survivors who return to their communities and homes after rescue are forced to migrate again in search of jobs which may lead to further exploitation and unsafe migration. The compounded impact of climate-induced #displacement, economic instability, and the lack of social safety nets creates a difficult environment for survivors to rebuild their lives financially.?

Impact of Climate Change on Livelihoods

Rising temperatures, erratic rainfall patterns, and increased frequency of extreme weather events such as cyclones, floods, and droughts are putting immense pressure on not only West Bengal & Andhra Pradesh’s agricultural productivity but, on other states in the country too, especially those with coastal belts. Being highly vulnerable to the effects of climate change, these states are experiencing a range of environmental changes that are disrupting agriculture, livestock rearing, and dairy farming.?

Saltwater intrusion in the coastal regions, particularly in Sundarbans (WB) & Ongole (AP) is rendering large tracts of agricultural land unproductive. Cyclonic activity has increased, bringing storm surges that cause salinisation of both soil and freshwater resources, making it difficult for farmers to cultivate crops such as rice, vegetables, and pulses.

These disruptions are driving rural populations into deeper poverty, forcing many to migrate to urban areas in search of work, often in unstable or informal employment. This increases their vulnerability to economic exploitation, including human trafficking, as they become more desperate for stable sources of income.

Impact of Climate Change on Financial Inclusion of Vulnerable Populations

1. Displacement & Lack of Documentation: For survivors of trafficking, who may already lack formal identification documents, the loss of homes and livelihoods due to climate disasters can make accessing financial services even harder. Climate-induced displacement makes it even more difficult for survivors to meet these requirements, as they may lose access to essential documents in the chaos of displacement. This lack of documentation prevents survivors from accessing banking services, receiving government benefits, or applying for microcredit schemes, leaving them financially excluded and vulnerable to informal moneylenders who charge exorbitant interest rates.
2. Economic Instability & Inconsistent Income: Many survivors of trafficking rely on sectors like agriculture, fishery, or informal labour, all of which are highly vulnerable to the impacts of climate change. For trafficking survivors working in these climate-sensitive sectors, the economic instability caused by environmental changes leads to inconsistent incomes. Financial institutions are less likely to extend loans, credit, or insurance to individuals without a stable income, further limiting survivors' access to financial services. This instability also makes it difficult for survivors to build savings or make long-term financial plans, increasing their vulnerability to exploitation or re-trafficking.
3. Limited Access to Credit, Financial Services & Infrastructure: Survivors’ financial literacy and access to formal financial services are limited. Climate disasters exacerbate this problem, as they destroy local infrastructure, further limiting access to banking services and credit. Rural and coastal communities, already underserved by financial institutions, may see their local bank branches, ATMs, or microfinance operations shut down or disrupted during extreme weather events. Access to insurance products is also limited, which means that survivors are left unprotected against losses caused by floods, storms, or droughts.
4. Limited Digital Inclusion: Even in regions where digital financial services like mobile banking or online credit are becoming more widespread, trafficking survivors often face barriers to accessing these tools. They face barriers to digital financial inclusion due to a lack of financial literacy, limited access to mobile technology, or unreliable digital infrastructure, particularly in disaster-prone or rural areas. They are unable to take advantage of new technologies that could improve their financial resilience.

Way Forward- Resilience, Financial Inclusion & Climate Adaptation:

Financial inclusion should be a cornerstone of action on climate adaptation since it is a unique enabler of grass-roots climate adaptation and a necessity for a just transition. Here are ways in which Sanjog enables financial inclusion, with the potential for further exploration:

1. Financial Inclusion as a Pillar of Economic Empowerment: Without access to key financial services like savings, credit, payments, and insurance, individuals and businesses cannot effectively prepare for or recover from increasingly frequent and intense climate shocks. Integrating vulnerable populations into financial systems through inclusive banking services, digital finance, and community cooperatives is critical to creating sustainable resilience.
2. Legal Frameworks for Financial Inclusion: Governments should implement policies that ease access to financial services for survivors, such as simplifying documentation requirements for bank accounts or developing specialised financial products. Survivors, so far have been able to access financial services and schemes via their SHGs & collectivisation but, individual access remains challenging. Sanjog works closely with the Government at all levels to enable greater access to rights and entitlements, working towards influencing policy pertaining to financial inclusion of survivors to create sustainability and resilient livelihoods.?
3. Social Protection Programs for Survivors: Extending social safety nets, such as healthcare, pensions, and insurance, to survivors reduces their vulnerability to future economic or environmental shocks. Social protection systems must also include provisions for communities affected by climate change, preventing displacement and the associated risk of trafficking.
4. ?Investing in Financial Literacy and Capacity Building for Survivors: Access to financial services is particularly crucial for empowering women and girls, who are often on the frontlines of community adaptation and resilience but face higher vulnerability to climate risks and exclusion from financial tools. By improving financial literacy and financial management capacities, survivors are better able to navigate economic risks and secure sustainable livelihoods.
5. Public, Private, and Philanthropic Sector Partnerships- Overcoming barriers to private sector investment is key to scaling inclusive finance for climate action. This will require a collaborative effort involving financiers, investors, and regulatory bodies. Public, private, and philanthropic sectors must align efforts to foster inclusive financial ecosystems that enable sustainable growth.
6. Digital Financial Empowerment: Digital financial technologies, such as mobile banking, can remove the barriers posed by physical infrastructure, allowing remote access to essential financial services. Empowering survivors with digital tools can significantly improve their financial independence and resilience, bypassing traditional banking limitations. Sanjog is currently working on building a model where survivors use a digital financial planner to increase their financial literacy as well as increase access to rights and entitlements.?
7. Targeted Microfinance Solutions for Survivors: Governments, financial institutions, and NGOs should collaborate to provide affordable financial products tailored to survivors’ unique needs. This could include micro-loans for starting businesses, easily accessible savings accounts, and financial literacy training as part of rehabilitation programs. By granting survivors access to credit and financial services, they can build personal assets, invest in education, and secure long-term economic stability. Currently, the Government in collaboration with banks, promotes the Kisan Credit Card, which offers farmers low-interest loans and insurance schemes like Pradhan Mantri Fasal Bima Yojana (PMFBY) to provide insurance against crop loss. Such targeted solutions must also be designed for survivors too.
8. Empowering Survivors in the Digital Services Industry: The growing digital economy presents new opportunities for survivors. With training in digital literacy, survivors can access flexible, remote work. Programs that equip survivors with these skills provide pathways to economic empowerment in the increasingly digitized workforce. Survivors can also extend their services to the community where they can help individuals with access to schemes and digital financial services, through Digital Community Centers.?
9. Diversified Livelihoods & Sustainable Practices: Encouraging a diversified portfolio of income-generating activities is crucial for building financial resilience. Alternative livelihoods help mitigate economic risks, especially in vulnerable communities, by ensuring individuals and families have multiple streams of income. Additionally, government-led training on sustainable practices for traditional businesses like agriculture, livestock management, and fishery, which include integrated farming systems, and information on climate-resilient breeds will safeguard these sectors that are vulnerable to climate change.?
10. Sustainable Manufacturing and Production: The manufacturing & fashion industry has contributed to environmental damage and labour exploitation, including trafficking. However, the rise of startups offers a new opportunity for survivors. Training survivors in sustainable production, eco-friendly material & inputs sourcing, and design can provide dignified employment. Survivor-led and Survivor-owned production and manufacturing units will not only pave the way for sustainability but also, create a ripple effect in the community to increase employment.?

As the exploration of Climate-Just Transition and Financial Inclusion continues, Sanjog invites communities, financiers, researchers, grassroots organisations, and climate action, to build Climate-Just Transition Strategies collaboratively.?