Barclays sued over funding Rampal plant

British lender Barclays Bank is facing a legal complaint before the UK government over its contribution to financing the Rampal Power plant near the Sundarbans, the world’s largest mangrove forest, according to a release from King’s Legal Clinic, a London-based legal service.

King’s Legal Clinic is assisting three clients who lodged the complaint with the UK government’s Office for Responsible Business Conduct (ORBC), alleging that Barclays breached guidelines on responsible business conduct and failed to conduct adequate due diligence before providing financial services linked to the 
project.

* The British bank breached OECD Guidelines and bankrolled the plant that threatens Sundarbans, a Unesco World Heritage
* Other banks rejected financing the project citing their ESG commitments
* The power plant faced significant opposition, including from Unesco

The complainants include local farmer Animesh Mandal, and internationally recognised Bangladeshi environmentalist Sharif Jamil.

The complaint concerns the Rampal Power Station, also known as the Maitree Super Thermal Power project, which began commercial operation in 2022. The plant is located next to the Sundarbans, a Unesco World Heritage site spanning Bangladesh and India.

The complainants alleged that Barclays breached the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct.

The power plant faced significant opposition, including from Unesco, during its planning and construction. Other banks reportedly rejected financing the project citing their environmental, social and governance (ESG) commitments.

The complaint also cited Barclays' environmental policies dating back to 2003, including commitments to address instances associated with human rights violations.

According to the complaint, Barclays provided financial services to India's state-owned National Thermal Power Corporation (NTPC), a joint venture partner in the plant, by underwriting its shares and bonds worth €172.8 million between 2005 and 2013 and $631 million between 2014 and 2017.

Between 2016 and 2019, Barclays also underwrote bond issuances for the Export Import Bank of India, which provided a loan for the project, according to the complaint.

Sue Willman, a solicitor with King's Legal Clinic, said the complaint sought to draw attention to the Sundarbans' vulnerability to the climate and nature crisis.

"This is a chance for the UK to hold its banks and financial institutions accountable for their contribution to that crisis," she said, according to the release.

Sharif Jamil, a Dhaka-based environmentalist, said British banks such as Barclays were contributing to climate damage by financing high-emission plants near the Sundarbans.

"I have brought this complaint to bring Barclays to the table through the OECD process to discuss the ongoing harms that arise from their investment," he said.

He also questioned how Barclays intended to implement its stated climate commitments and net-zero targets.