BACK TO TOP

Three more insurers rule out East Africa Crude Oil Pipeline

Insurance providers Argo Group and Axis Capital, both Lloyd’s of London members, and RSA Insurance Group Limited, a leading UK insurer, have informed the #StopEACOP coalition that they will not be involved in underwriting the East African Crude Oil Pipeline (EACOP) project.

The decision by the three firms brings to 11 the total number of (re)insurers who have committed not to provide insurance coverage for the EACOP project. This is significant because the project needs substantial levels of international (re)insurance to proceed. The firms cite the EACOP project’s potential impact on people, nature and climate as among the reasons for their refusal to underwrite the project.

“We are able to confirm that providing insurance for the EACOP project, its construction, contractors, infrastructure or operation is not within our risk appetite. Therefore, we have not and will not provide insurance services associated with this project.”

- Alex Hindson, Chief Risk & Sustainability Officer, Argo Group

RSA Insurance Group Limited officially communicated that “our underwriters follow our Climate Change and Low Carbon Policy, which means we would not provide cover to the East Africa Crude Oil Pipeline.”

Axis Capital noted the insurance firm “​​…do[es] not support the East Africa Crude Oil Pipeline” and also confirmed that they “...do not envisage supporting EACOP in the future,” in email correspondence with Coal Action Network.

The EACOP and the associated Tilenga and Kingfisher oil fields are faced with widespread resistance locally in Uganda and Tanzania and globally, with over 1 million people signing a global petition against the projects. The planned pipeline is displacing tens of thousands of households in Uganda and Tanzania.

“TotalEnergies insists on forging ahead with the EACOP project even in the face of substantial local and global opposition. The company downplays the negative impacts of the project while arguing that the project is good for Uganda’s economic development. The truth is that the project is only good for Total and its shareholders and not the frontline communities facing displacement and human rights violations that have harmed their livelihoods.  Financial institutions that are serious about protecting human rights and avoiding climate breakdown should rule out supporting the EACOP.”

 

- Diana Nabiruma of Africa Institute for Energy Governance (AFIEGO), Uganda

The EACOP, its associated upstream oil projects and related infrastructure such as roads, pose a threat to livelihoods, local cultures, sensitive ecosystems and wildlife, including endangered species in the Lake Victoria basin, Budongo forest, Murchison Falls National Park, Biharamulo Game Reserve and others.

The news comes against the backdrop of a worldwide concern that oil companies are making a killing by harming the environment and leaving communities where their projects exist languishing in poverty.

“As oil companies continue their operations in Africa, raking in huge profits, local communities are left to deal with the negative socio-economic and environmental impacts of these exploits. We welcome the move by Argo Group, Axis Capital and RSA not to offer (re)insurance coverage to the EACOP project, a project that not only comes at a huge cost to people, nature and climate but also jeopardizes key sectors that employ the majority of people in Uganda and Tanzania such as agriculture, tourism and fisheries. We call on other financial institutions that are yet to distance themselves from EACOP to do so and seal the fate of this harmful project.”

- Omar Elmawi, Coordinator of the #StopEACOP Coalition

These commitments illustrate the growing level of rejection of the project by international (re)insurers. EACOP can not proceed without international (re)insurance. RSA is a leading UK insurer, while Argo and Axis are members of Lloyd’s of London, the world's largest (re)insurance market. This adds to the pressure on the other Lloyd’s members and the wider insurance market also to reject EACOP. We also call on insurers as investors to proactively support renewable energy projects in Uganda, Tanzania and throughout Africa, where such projects are not in conflict with communities or ecosystems.

In addition to the 11 (re)insurers that have distanced themselves, 20 banks and 4 export credit agencies have committed not to provide project financing for the EACOP project.A recent report noted that the EACOP presents various violations of the IFC Performance Standards and Equator Principles in terms of both human rights and climate impacts.

Share now:

Subscribe
Notify of
guest

0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Never miss an update! Sign up to our Newsletter

OTHER STORIES

Coal tip remediation – not coal tip mining

The Welsh Government’s long-awaited Bill is expected to be presented to the Senedd before the end of 2024. The very recent Cwmtillery tip slip will make this Bill a more politically charged issue. It will also raise scrutiny over whether measures in the new Bill mark a sufficient improvement on the Mines and Quarries (Tips) Act 1969…

Türkiye’nin Kömür Kullanımına Devam Etmesi

Kömür Eylem Ağı (Coal Action Network), 2024 yılında Türkiye kömür endüstrisini araştırdı. Bu makalede, bulgularımız ve Türkiye’deki kömür, hava kirliliği, Rusya savaşı ile karbonsuzlaştırma arasındaki ilişkiler inceleniyor.

e-action to stop this year’s Mines and Monday Conference

Last December in London, the CAN team protested with other climate campaigners for two days in freezing temperatures outside one of the world’s biggest events funnelling investment into expanding mining globally. The ‘Mines and Money Conference’ held in London’s Business Design Centre connected investors with projects and companies responsible for human rights abuses, ecocide, and fuelling climate chaos…

UK Government makes it official: coal mining no more

The UK Government has laid a Written Ministerial Statement confirming that it will introduce legislation to “restrict the future licensing of new coal mines”, by amending the Coal Industry Act 1994, “when Parliamentary time allows”. The UK Government’s press release is entitled “New coal mining licences will be banned”. Here at Coal Action Network, we thinks it’s great that the UK Government is following…

Turkey’s deadly coal consumption

(Türkçe olarak mevcuttur) Coal Action Network investigated the Turkish coal industry in 2024. This article looks at our findings and the links between Turkish coal, air pollution, Russia’s war and decarbonisation.

We have to do better by steelworkers…

Former steelworker, Pat Carr, spoke to Anne Harris from Coal Action Network about the financial support offered to workers when the Consett steelworks closed in 1980, and they discussed what can be done better, in workplaces like Scunthorpe steelworks. (Article published in Canary magazine)

Another nail in the coffin for West Cumbria Mining Ltd

The proposed West Cumbria Coal mine lost its planning permission in September 2024. Since then its application to get a full coal mining license was refused by the Coal Authority, another nail in the coffin of the proposed coking coal mine.

Glan Lash extension: the second attempt

Bryn Bach Coal Ltd is the coal mining company that operates the Glan Lash opencast coal mine, which has been dormant since planning permission expired in 2019. In 2018, it applied for an extension which was unanimously rejected by planning councillors in 2023. Undeterred, Bryn Bach Coal Ltd is trying again! This time with a slightly smaller extension of some 85,000 tonnes rather than 95,000 tonnes…

Consett Steelworks closure – a Just Transition? (An interview)

Former steelworker, Pat Carr, speaks to Anne Harris from Coal Action Network about the financial support offered to workers when the Consett steelworks closed in 1980.

CONNECT WITH US

Share now:

0
Would love your thoughts, please comment.x
()
x