Barclays Bank is currently under scrutiny due to a formal complaint regarding its financial ties to a coal-powered facility located near the Sundarbans, the largest mangrove forest in the world, which is home to millions of residents in both Bangladesh and India.
A group of three individuals from the region has lodged a complaint with the UK government’s Office for Responsible Business Conduct, claiming that the British bank violated international standards by providing financial backing to firms associated with the environmentally detrimental Maitree super thermal power project, also referred to as the Rampal power plant.
This coal-powered facility is positioned adjacent to the Sundarbans, a UNESCO World Heritage site consisting of over 100 small islands in a river delta that sustains numerous plant and animal species, including the endangered Bengal tiger.
Sharif Jamil, an environmental activist from Dhaka and one of the complainants, expressed concerns that heavy metal contamination from the power station and the industrial activities in its vicinity is polluting the Sundarbans through its network of rivers and canals. “The Rampal power plant is located right next to the Pasur River, which is essential to the Sundarbans’ ecosystem,” he stated. “The forest’s health is at risk.”
A study conducted last November revealed alarming levels of mercury and arsenic in water samples from the Sundarbans, particularly in the Pasur River. Researchers attributed the heavy metal pollution to industrial discharges and port operations, warning that the Rampal facility represents a serious environmental risk due to its coal combustion emissions and the increased shipping traffic it generates.
The Sundarbans is home to millions of people, many of whom rely on the river and forest resources for their livelihoods. The complainants argue that Barclays did not sufficiently assess the environmental and human rights implications before extending financial services to organizations involved with the power project.
According to King’s Legal Clinic, which is supporting the complainants, Barclays provided financial backing to NTPC Ltd, a state-owned company in India and a partner in the Rampal project. Additionally, the clinic noted that Barclays underwrote bond issues for the Export-Import Bank of India from 2016 to 2019, which facilitated a loan for the power station.
The complainants contend that emissions from the Rampal plant will exacerbate global warming, contribute to rising sea levels, and lead to extreme weather events in a region already susceptible to climate change. Mangroves serve as a natural shield against cyclones and severe weather conditions.
The power station faced significant opposition during its planning and construction stages, with UNESCO expressing concerns in a 2016 report that indicated “air and water pollution has a high likelihood of causing irreversible damage to the World Heritage property.” Some financial entities, including banks in France, opted not to support the project due to its anticipated environmental and social impacts.
Jamil emphasized that as a global institution, Barclays has a duty to consider the implications of its financial activities. “With greater reputation comes a greater responsibility to act wisely towards the planet and its inhabitants,” he remarked. He noted that other financial institutions had chosen to withdraw from or refuse financing for the Rampal project, urging Barclays and similar organizations to reassess their policies and explore ways to aid in the fight against climate change.
Jamil encouraged banks to allocate more resources towards renewable energy initiatives instead of relying on imported fossil fuels. “Bangladesh enjoys abundant sunlight throughout the year,” he stated. “Why should we continue to invest in fossil fuels when we have immense potential for renewable energy generation?”
The other complainants include Animesh Mandal, a farmer and political figure, as well as the Dakshinbanga Matsyajibi Forum, a trade union for fish workers in West Bengal. They are receiving assistance from students and legal professionals at King’s Human Rights and Environment Clinic, a part of King’s College London’s law school.
Sue Willman, a solicitor at the clinic, remarked, “Rural communities in the Sundarbans are at the forefront of the climate and ecological crisis. We aim to encourage banks and financial institutions to reconsider their financing of oil and coal projects that contribute to this crisis.”
The Office for Responsible Business Conduct, under the Department for Business and Trade, will evaluate whether to investigate the complaint further.
Both Barclays Bank and the Bangladesh India Friendship Power Company Ltd, which oversees the Maitree super thermal power project, have opted not to provide comments on this matter.
