Barclays faces complaint over Rampal coal

Barclays Bank is the subject of a formal complaint to the UK government over its financial links to a coal-fired power station adjacent to the Sundarbans. Three complainants from Bangladesh and India allege the bank breached international responsible business guidelines by underwriting companies involved in the emission-heavy Maitree super thermal power project, also known as the Rampal plant.

Sharif Jamil, an environmental campaigner from Dhaka and one of the complainants, stated that heavy-metal pollution from the plant is entering the Sundarbans through its waterways. He said the Rampal power plant is right on the bank of the Pasur River, which is the lifeline of the Sundarbans, and that the health of the forest is in trouble.

Environmental threats to a world heritage site

The power station is situated near the Sundarbans, a Unesco world heritage site and the world's largest mangrove forest. A study last November found elevated levels of mercury and arsenic in water samples from the area, with the highest concentrations in the Pasur River. Researchers identified industrial discharge and port-related activities as sources, stating the Rampal plant posed a significant environmental threat from coal emissions and increased ship traffic.

Millions of people live in the Sundarbans and depend on its rivers and forests for food. The complainants argue the plant's emissions will contribute to global heating, rising sea levels, and extreme weather in a climate-vulnerable region. Mangroves act as a natural barrier against cyclones.

Allegations of failed due diligence

The claimants allege Barclays failed to conduct sufficient due diligence on environmental and human rights risks before providing financial services. According to King's Legal Clinic, which is assisting the complainants, Barclays underwrote debt for India's state-owned NTPC Ltd, a joint-venture partner behind the plant. The bank also underwrote bond issues for the Export-Import Bank of India between 2016 and 2019, which provided a loan for the Rampal project.

The complaint notes that Unesco raised concerns in a 2016 report, concluding pollution had a high likelihood of irreversibly damaging the world heritage property. Some other financial institutions, including banks in France, refused to support the project due to its potential impacts.

Calls for a shift to renewable energy

Jamil argued that Barclays' international reputation brings greater responsibility. He added that other banks and financial institutions were divesting from, or declining to finance, this project. He called on banks to change policies and examine how their operations can protect the planet from climate catastrophe.

Jamil also urged more funding for renewable energy instead of imported fossil fuels, noting that Bangladesh has sunlight throughout the year. The other complainants include farmer and politician Animesh Mandal and the Dakshinbanga Matsyajibi Forum, a fish workers' trade union.

Sue Willman, a solicitor at King's Human Rights and Environment Clinic, said rural Sundarbans communities are on the frontline of the climate and nature crisis. The Office for Responsible Business Conduct, part of the Department for Business and Trade, will assess whether to consider the complaint. Barclays Bank and the project's holding company, BIFPCL, declined to comment.