Barclays sued for financing coal plant threatening the Sundarbans mangrove ecosystem
A formal grievance has been lodged against Barclays for underwriting the coal-fired Rampal power plant near the Sundarbans, alleging violations of international environmental standards.
Environmental advocates from Bangladesh and West Bengal have submitted a case to the UK Office for Responsible Business Conduct, asserting that Barclays breached international guidelines by financing the coal-fired Rampal power plant adjacent to the Sundarbans mangrove forest. The complaint points to Barclays’ underwriting of debt for state-owned NTPC Ltd and bond issues for the Export-Import Bank of India, which supplied loans for the Maitree super-thermal project.
Recent water testing revealed elevated mercury and arsenic levels in the Pasur River, the main waterway feeding the Sundarbans, with industrial discharge from the plant identified as a key source. UNESCO warned in 2016 that emissions and water pollution could cause irreversible damage to the World Heritage site. While some European banks have withdrawn support, Barclays has not responded to requests for comment. The petitioners, including activist Sharif Jamil, farmer Animesh Mandal and the Dakshinbanga Matsyajibi Forum, urge financial institutions to prioritize renewable energy over imported fossil fuels.
Why it matters
The case highlights how bank financing can influence environmentally sensitive projects and affect vulnerable coastal communities.
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