EACOP Delivered Fresh Blow by German Insurer

Talanx, Germany’s third largest insurer, has become the latest to confirm it will not reinsure the East African Crude Oil Pipeline (EACOP). It is the thirteenth insurance firm to rule out involvement with the controversial pipeline, backed by French oil firm TotalEnergies and the China National Offshore Oil Corporation, following three insurance firms doing so last week. The project is expected to create more than 33 million tons of carbon emissions per year once completed, but without insurance it is expected to struggle to raise funds. Firms to have distanced themselves from the project include Munich Re, Swiss Re, Hannover Re, SCOR, Beazley, Zurich and AXA. JPMorgan Chase, Citigroup, Wells Fargo and Morgan Stanley have also all ruled out any financing role. Samuel Okulony, CEO of NGO Environment Governance Institute, said: “More and more (re)insurers are learning about the many problems that EACOP is bringing to the people of Uganda and Tanzania and the health, social, and climate impacts that the pipeline will leave in its wake, and they are wisely distancing themselves from the project”. Activist campaign Stop EACOP have also rejected at “misleading” claims the project has been fully insured.  

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