Key facts
- Barclays Bank is facing a formal complaint for its financial links to the Rampal coal-fired power station.
- The power station is located near the Sundarbans, a UNESCO World Heritage site.
- Complainants allege the bank breached international guidelines by underwriting companies involved in the project.
- A study found elevated levels of mercury and arsenic in water samples from the Sundarbans.
- The claimants allege Barclays failed to conduct sufficient due diligence on environmental and human rights risks.
Barclays Bank is facing a formal complaint lodged with the UK government's Office for Responsible Business Conduct over its financial backing of the Maitree super thermal power project, also known as the Rampal power plant. The coal-fired facility is situated near the Sundarbans, the world's largest mangrove forest, which is a UNESCO World Heritage site and home to millions of people and numerous species, including the Bengal tiger.
Complainants allege that Barclays breached international guidelines by underwriting companies involved in the emission-heavy project. They claim that heavy-metal pollution from the plant and surrounding industrial development is entering the Sundarbans through its interconnected waterways, impacting the forest's health. A recent study found elevated levels of mercury and arsenic in water samples from the Sundarbans, with the highest concentrations in the Pasur River, a vital lifeline for the mangroves. Researchers identified industrial discharge and increased navigation traffic as sources of contamination, stating the power station poses a significant environmental threat.
The claimants further allege that Barclays failed to conduct sufficient due diligence on the environmental and human rights risks before providing financial services to organisations connected to the project. Barclays reportedly underwrote debt for India's state-owned NTPC Ltd, one of the joint-venture partners, and bond issues for the Export-Import Bank of India, which provided a loan for the project. The complainants argue that emissions from the plant will exacerbate global heating, rising sea levels, and extreme weather in a region already highly vulnerable to the climate crisis, despite mangroves acting as a natural defense.
The Rampal power station has faced sustained opposition, with Unesco raising concerns in 2016 about the high likelihood of irreversible damage to the World Heritage property from air and water pollution. Some financial institutions, including French banks, reportedly declined to support the project due to its potential environmental and social effects. Complainants, including environmental campaigner Sharif Jamil, farmer and politician Animesh Mandal, and the Dakshinbanga Matsyajibi Forum, are being assisted by legal experts from King's College London. They urge banks to change policies and direct funding towards renewable energy instead of fossil fuels.