Climate campaigners win victory as Standard Chartered refuses to finance contentious $5 billion Ugandan oil pipeline

The decision by Standard Chartered Plc not to fund the East African Crude Oil Pipeline (EACOP) project has been hailed as a triumph for climate activists worldwide.

On Friday, the London-based bank confirmed to Bloomberg that it is not participating in the project’s funding.

Standard Chartered is the 25th major bank to openly shed itself from the EACOP, which still requires a $2-$3 billion project financing loan. As a result, it has lost the support of nine of TotalEnergies’ ten main funders.

The bank was compelled to make the decision owing to mounting pressure from the #StopEACOP campaign, despite previously confirming that it was conducting due diligence on financing the $5 billion project.

Despite the fact that construction has not yet begun, the contentious EACOP project, led by French oil firm TotalEnergies, has already resulted in scores of project-affected individuals and frontline activists facing assault, intimidation, and land use restrictions.

The compensating methods have been unjust, causing many impacted communities to lose their land and other income-generating streams as a result of the pipeline’s construction.

Local groups and activists have also expressed concern about the pipeline’s possible impact on the environment and the well-being of individuals living in its path. The EACOP might cause a significant increase in carbon emissions, as well as a clear threat to local wildlife populations, particularly protected and fragile habitats.

Landry Ninteretse, 350Africa.org Regional Director, stated in a statement published on 350.org that by declining to fund the EACOP project, Standard Chartered is taking a stand on the urgent need to address the global climate crisis and demonstrating its commitment to environmental responsibility and social justice.

According to Landry, in order to avoid catastrophic climate impacts, financial institutions must stop investing in damaging fossil fuel projects and instead fund the now-imminent switch to renewables.

“The shift to renewables requires massive support from banks. Their investments must be rightly channelled to avoid the exacerbation of a rapidly deteriorating climate change resulting from fossil fuels,” he said.

#StopEACOP Campaign Coordinator, Zaki Mamdoo, stated that Standard Chartered’s refusal to finance the EACOP project is a significant victory for communities impacted by this pipeline and for climate activists worldwide who have been calling for an end to fossil fuel projects that threaten people, nature, and the climate.

He said, “this move should signal other financial institutions on the fence about whether to support this destructive project to act in the interest of the people of Uganda and Tanzania by taking a firm stand against EACOP.”

The global campaign #StopEACOP opposes the construction of the East African Crude Oil Pipeline (EACOP). This proposed 1,443-kilometer heated pipeline will deliver oil from Hoima, Uganda, to the Tanzanian port of Tanga.

The effort is led by an alliance of local groups, communities, African and worldwide organizations. The #StopEACOP Coalition has called for the proposed pipeline and related oil fields at Tilenga and Kingfisher to be halted.

The #StopEACOP campaign is gaining traction, putting pressure on the East African Crude Oil Pipeline’s remaining backers and financiers.

AEGIS London, Arch Capital Group Ltd, and Britam Holdings have recently said that they will not provide project insurance coverage. So far, 25 big banks and 23 major (re)insurers have said they will not support the pipeline. AIG, ICBC, MUFG, and SMBC are among the financial companies that have yet to pledge to not funding EACOP.

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