Barclays Accused Of Failing Environmental Checks Over Financing For Coal Plant Near Sundarbans
Synopsis
Barclays Bank is accused of breaching international guidelines by underwriting companies linked to the Rampal coal plant near the Sundarbans, raising environmental and human rights concerns.
Barclays Bank is facing a formal complaint over its financial links to the Rampal coal-fired power station near the Sundarbans, the world’s largest mangrove forest and a Unesco world heritage site.
Three complainants from the region submitted the case to the UK government’s Office for Responsible Business Conduct, alleging the bank breached international guidelines by underwriting companies involved in the Maitree super thermal power project.
The Rampal plant, located on the bank of the Pasur River, has long faced opposition due to its proximity to the Sundarbans, which supports hundreds of plant and animal species, including the Bengal tiger.
Sharif Jamil, an environmental campaigner in Dhaka and one of the complainants, said heavy-metal pollution from the plant and surrounding industrial activity was entering the forest through interconnected rivers and canals. “The health of the forest is in trouble,” he warned.
A study last November found elevated levels of mercury and arsenic in water samples from the Sundarbans, with the highest concentrations in the Pasur River. Researchers identified industrial discharge and port-related activities as sources of contamination, noting the Rampal plant posed “a significant environmental threat.”
Allegations Against Barclays
The complainants argue Barclays failed to conduct sufficient due diligence on environmental and human rights risks before providing financial services. Barclays underwrote debt of India’s state-owned NTPC Ltd, a joint-venture partner in the project, and bond issues for the Export-Import Bank of India between 2016 and 2019, which financed the plant.
They contend emissions from the plant will contribute to global heating, rising sea levels and extreme weather in a region already vulnerable to the climate crisis. Mangroves act as a natural barrier against cyclones, making their preservation critical.
UNESCO raised concerns in 2016, warning that pollution from the project could irreversibly damage the Sundarbans. Some banks in France refused to support the project due to its environmental and social risks.
Calls For Change
Jamil said Barclays’ global reputation obliged it to act responsibly. “Other banks and financial institutions were divesting from, or declining to finance, this project. Barclays and other financial organisations should change their policies and examine how their operations can protect the planet from climate catastrophe,” he said.
He urged banks to direct funding towards renewable energy. “Bangladesh has sunlight throughout the year. Why should we expand fossil fuels when there is enormous potential to produce electricity from renewable energy?”
Other complainants include Animesh Mandal, a farmer and politician, and the Dakshinbanga Matsyajibi Forum, a trade union representing fish workers in West Bengal. They are being assisted by King’s Human Rights and Environment Clinic at King’s College London.
Sue Willman, a solicitor at the clinic, said: “Rural communities in the Sundarbans are on the frontline of the climate and nature crisis. We hope to persuade banks and financial institutions to think again before financing oil and coal developments that are contributing to that crisis.”
The Office for Responsible Business Conduct, part of the UK Department for Business and Trade, will assess whether to consider the complaint. Barclays Bank and BIFPCL, the holding company for the Rampal project, declined to comment.