Barclays faces complaint over backing for power plant near world’s largest mangrove forest
Barclays Faces Complaint Over Backing Rampal Power Plant
Wanderstayfinder.com – Barclays faces complaint over backing for a coal-fired power station operating beside the world's largest mangrove forest. Three local complainants have lodged a formal case with the UK government's Office for Responsible Business Conduct, alleging that the London-headquartered bank breached internationally recognised guidelines by extending financial services to organisations linked to the Rampal super thermal project. The station sits within sight of the Sundarbans, a Unesco World Heritage site spanning more than 100 islands across the Bangladesh–India river delta.
The delta sustains millions of people whose daily survival depends on fishing, forest products, and the labyrinth of tidal waterways that thread the archipelago. Dense mangrove stands shelter hundreds of species — most visibly the Bengal tiger — and act as a natural barrier against cyclones and storm surges. For residents inside and around the forest, ecological degradation is not a distant conservation debate; it is a question of whether the next monsoon season will be survivable.
Who Filed the Case and What It Alleges
The complainants are Sharif Jamil, an environmental campaigner based in Dhaka; Animesh Mandal, a farmer and local politician; and the Dakshinbanga Matsyajibi Forum, a trade union representing fish workers in West Bengal, India. Assisted by King's Legal Clinic, they argue that Barclays failed to conduct adequate due diligence on environmental and human-rights risks before servicing entities tied to the Rampal project.
Two specific financial links are cited. Barclays underwrote debt issued by India's state-owned NTPC Ltd — formerly the National Thermal Power Corporation — a joint-venture partner behind the plant. Separately, the bank underwrote bond issues for the Export-Import Bank of India between 2016 and 2019; that lender extended a loan earmarked for Rampal. The complainants contend these transactions channelled capital into a facility whose coal-combustion output will intensify global heating, sea-level rise, and extreme-weather events in a region already acutely exposed to climate disruption. They note that several French banks declined to back the project owing to its anticipated environmental and social impacts.
Measurable Contamination in the Delta's Waterways
The environmental case rests on data, not speculation. A study published last November detected elevated concentrations of mercury and arsenic in water samples collected across the Sundarbans, with the Pasur River recording the highest readings. Researchers traced the heavy-metal contamination to industrial discharge and port-related activities, singling out the Rampal station as posing "a significant environmental threat due to emissions from coal combustion and increased navigation traffic."
Jamil, who has monitored the delta's waterways for years, described how pollutants from the plant and surrounding industrial development migrate through the Sundarbans via its interconnected river and canal network.
"The Rampal power plant is right on the bank of the Pasur River, which is the lifeline of the Sundarbans. The health of the forest is in trouble."
A Pattern of Ignored Warnings
Resistance to the project dates to its planning stages. In a 2016 report, Unesco warned that "air and water pollution have a high likelihood to irreversibly damage the … World Heritage property," underscoring the fragility of an ecosystem already stressed by rising seas and shifting sediment patterns. Construction proceeded regardless, and the station now operates within sight of the forest's waterways.
Jamil framed the complaint as a matter of proportionate responsibility: a bank of Barclays' global stature, he argued, carries a correspondingly elevated duty to weigh the downstream consequences of its financing decisions.
"The greater your reputation, the greater your responsibility to behave responsibly towards the planet and its people. Barclays is a reputed global organisation, and that is why it also has a responsibility."
He pointed out that peers in the sector had already moved to divest from or simply decline the project, reinforcing the argument that Barclays' continued involvement was a choice rather than an inevitability.
Frequently Asked Questions
What exactly did the complainants allege? They alleged that Barclays breached internationally recognised guidelines by failing to conduct adequate environmental and human-rights due diligence before providing financial services to entities connected with the Rampal coal power project.
Where was the complaint filed? With the UK government's Office for Responsible Business Conduct, the body tasked with overseeing corporate conduct under international guidelines.
What is the Rampal project? A super thermal (coal-fired) power station operating in close proximity to the Sundarbans mangrove forest, a Unesco World Heritage site straddling the Bangladesh–India border.
What environmental evidence supports the complaint? A study published last November found elevated mercury and arsenic levels in Sundarbans water samples, with the Pasur River showing the highest concentrations. Researchers linked the contamination to industrial discharge and port activities associated with the plant.
Did other banks back the project? Several financial institutions, including banks in France, declined to finance the project. The complainants note that some peers have since divested, arguing that Barclays' continued involvement was a discretionary choice.