Chubb Dropping Rio Grande LNG A Step in the Right Direction, Now Drop EACOP

Chubb’s recent decision to drop coverage for the controversial Rio Grande LNG project is a significant turning point for the insurance industry. It signals a growing awareness of the immense risks associated with fossil fuel projects, from climate change to community displacement.

Insurance companies have been complicit in climate change for too long. They profit from insuring projects like EACOP, thereby enabling their destruction of biodiversity and accelerating climate change. So far, the sector has experienced unprecedented losses due to weather extremes attributed to climate change, yet the majority continue to insure new fossil fuels.

Now that Chubb has shown this awareness in dropping Rio Grande LNG, we call upon them to make a public commitment not to provide insurance coverage for EACOP. This will set an example within the industry and show that insuring fossil fuels is not good business. It is only through bold acts from firms like Chubb that our planet can have a future.

The East African Crude Oil Pipeline (EACOP), stretching approximately 1445 kilometers from Uganda to Tanzania, would be devastating for local communities, wildlife, and our planet as a whole. Already associated with human rights abuses, this project has caused immense suffering among frontline communities.

Insurers such as Chubb could help speed up the transition to renewable energy by refusing to underwrite new oil projects. This would align with international climate goals and offer better long-term returns on capital investment. 

The insurance industry is shaping the future today. By refusing cover on new ventures in fossil fuel businesses and advancing renewable energy schemes, insurers can play an important part in achieving sustainability objectives. This is not just good for their pockets but also helps save our fragile environment and build healthier communities.

This move by Chubb is thus a welcome one since they will no longer be providing coverage for Rio Grande LNG. However, we are now saying it is time to stop insuring EACOP too.

EACOP indicates the extent to which the industry values sustainability. Will insurers continue to support projects that exacerbate climate risks, or will they redirect their resources towards a greener future? Embracing this would help insurers shape a world where generations yet to come can thrive.