Barclays is facing a formal complaint over its financial backing of corporate entities linked to the controversial Rampal coal-fired power station located near the Sundarbans, the world’s largest mangrove forest. Submitted by three residents from Bangladesh to the UK government’s Office for Responsible Business Conduct, the filing claims the multinational bank breached international corporate responsibility standards by underwriting companies constructing and operating the facility. The complainants argue that the project creates severe environmental, health, and climate hazards for millions of people living in the ecologically vulnerable delta region spanning Bangladesh and India.
Allegations of Environmental and Climate Harm
The Maitree Super Thermal Power Project, commonly known as the Rampal power plant, has drawn intense domestic and international criticism since its inception. Located near the UNESCO World Heritage-listed Sundarbans, the coal plant threatens delicate ecosystems that provide vital coastal defense against cyclones and serve as the natural habitat for endangered species such as the Royal Bengal tiger. The petition alleges that toxic runoff, heavy coal transport through sensitive waterways, and massive greenhouse gas emissions jeopardize local livelihoods, particularly in fishing and farming communities already bearing the brunt of climate change.
According to the legal filing, Barclays failed to carry out adequate human rights and environmental due diligence before extending financial support to companies directly tied to the coal project. By facilitating financing, the complainants assert that the British lender disregarded the Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises. These international standards require financial institutions to identify, prevent, and mitigate adverse environmental impacts throughout their value chains and investment portfolios.
Rising Scrutiny on Global Banking Coal Ties
The action against Barclays comes amid intensifying public and regulatory scrutiny over the role of Western financial institutions in underwriting fossil fuel infrastructure in developing nations. While major commercial banks have committed to net-zero targets and pledged to wind down direct project financing for new coal plants, activists argue that indirect financing—such as issuing bonds and providing revolving credit lines to major energy conglomerates—allows carbon-heavy projects to proceed unhindered. This case represents a growing trend of local communities using international oversight mechanisms to hold distant financiers accountable.
The UK’s National Contact Point within the Office for Responsible Business Conduct will now assess the merits of the complaint to determine whether to facilitate mediation between the parties or launch a formal investigation. If the watchdog finds that the bank fell short of OECD standards, it could issue formal recommendations urging Barclays to align its lending practices with its stated environmental commitments and address the grievances of the impacted communities along the Bay of Bengal.
