King's Legal Clinic are assisting clients who have filed a complaint to the UK government Office for Responsible Business Conduct (ORBC) against Barclays Bank for its contribution to funding harmful emissions of a coal power plant next to the world's largest mangrove forest.
"Rural communities in the Sundarbans are on the frontline of the climate and nature crisis. We hope to persuade banks and financial institutions to think again before financing oil and coal developments which are contributing to that crisis".
Sue Willman, King's Legal Clinic solicitor
Known as Rampal Power Station, the coal power plant sits within a UNESCO world heritage site bordering India and Bangladesh in a region called The Sundarbans. The Sundarbans mangrove forest is home to 7.2 million people and is made up of many tiny islands across a river delta supporting 334 plant and 693 wildlife species including the Bengal tiger.
Protected by four UNESCO World Heritage Sites, the Sundarbans are on the frontline of the climate crisis and act as a vital natural barrier protecting coastal regions from extreme weather such as cyclones. They have been on the International Union for Conservation of Nature (IUCN) Red List of Ecosystems since 2020.
Despite, being an area under threat, Barclays decided to underwrite the coal power plant, called the Maitree Super Thermal Power project, which began commercial operation in 2022.
Sue Willman, King's Legal Clinic solicitor said: "Rural communities in the Sundarbans are on the frontline of the climate and nature crisis. We hope to persuade banks and financial institutions to think again before financing oil and coal developments which are contributing to that crisis".
The complaint has been raised by three people from the region including a local farmer and elected politician and an internationally recognised environmentalist from Bangladesh. Farmer Animesh Mandal and environmentalist Sharif Jamil allege that Barclays has breached guidelines for responsible business conduct in failing to conduct due diligence and breaching OECD guidelines for Multinational Enterprises on Responsible Business Conduct in its decision to underwrite the coal plant.
They highlight the impact of emissions from coal on human-driven climate change driving sea level rise and extreme weather events to which the Sundarbans is particularly vulnerable sitting on average one meter below sea level.
The coal power station has faced considerable opposition including from UNESCO during the planning and construction phase and other banks have chosen not to finance the Project due to these concerns and their Environmental Social impact and Governance commitments. In this case, the complaint has also detailed some of Barclays' environmental commitments and policies dating back to 2003, including claims to take steps to rectify situations where they have been associated with human rights violations.
As part of the project, Barclays provided services to India's state owned National Thermal Power Corporation (NTPC) one of the joint venture partners in the plant by underwriting its shares and bonds from 2005 to 2013 to a value of €172.8m and from 2014 to 2017 to a value of $631m. Also, between 2016 to 2019, Barclays underwrote the bond issuance of the Export Import Bank of India who provided a loan for the Project.
Sharif Jamil, environmentalist based in Dhaka Bangladesh added: "British banks like Barclays are contributing to climate damage by financing high emission plants like this one in Bangladesh next to the Sundarbans World Heritage Site . I have brought this complaint to bring Barclays to the table through the OCED process to discuss the ongoing harms that arise from their investment. They say on their website they are targeting net zero. I would like to see how they plan to actually implement what they say on their website about climate change."
