Leading Insurers Ditch Controversial EACOP Pipeline
Good news for the climate and human rights advocates! Five more major (re)insurance companies have officially ruled out involvement in the East African Crude Oil Pipeline (EACOP) project, joining 23 others who've done the same.
More than anything, this victory highlights the growing financial risk of dirty energy projects, especially ones that are also dogged by numerous human rights violations like the controversial EACOP.
The latest blow came as prominent Lloyd's of London insurer SiriusPoint joined Riverstone International, Enstar Group, Blenheim and SA Meacock in officially restricting their services and investments in EACOP in response to escalating public pressures questioning support for ventures perpetrating environmental injustice.
EACOP now confronts substantial barriers to meeting its scheduled 2025 completion goal as construction delays surpassing four years persist while just half of the necessary funding has been secured. These compounding financial constraints accentuate the consensus around oil and gas pipelines' stark incompatibility with global climate targets as calls strengthen for a just transition to sustainable energy systems founded on consent and equity.
The withdrawal also signals hope for human rights defenders risking arrests by leading resistance despite violent suppression of environmental activism across Uganda and Tanzania. Indeed, this marks a significant victory for environmental and human rights activists who have consistently called for financial institutions to align business models with climate justice, hoping that it will help remedy injustices perpetrated by states and corporations on their citizens. Click here to read the full press release.
