In a major blow to the contentious East African Crude Oil Pipeline (EACOP) project, insurance behemoth Chubb has officially ruled out providing coverage for the massive fossil fuel development, according to Nigerian media outlet EnviroNews.
The decision makes Chubb the 30th major global insurer to distance itself from the controversial pipeline, joining more than 40 international banks that have already rejected financing the project following intense pressure from the international “Stop EACOP” campaign. The proposed pipeline would transport oil from Uganda’s Lake Albert region to Tanzania’s port of Tanga.
Rick Morris, insurance campaigner with Public Citizen’s Climate Program, praised the decision: “Insurance giants like Chubb are key financiers of new oil and gas infrastructure like EACOP. We applaud Chubb for refusing to insure this project. In solidarity with the people on the frontlines of Uganda and the oil and gas build-out along the US Gulf Coast, we call on insurance majors like AIG, Liberty Mutual, and Tokio Marine to rule out support of EACOP and all fossil fuel infrastructure.”
Morris emphasized that oil pipelines and fossil fuel infrastructure destroy the health, livelihoods, and heritage of frontline communities, warning that climate change effects will only grow more costly. “We desperately need insurers to put the lives of frontline communities, working people, and future generations over short-term profits from fossil fuels,” he added.
The withdrawal of yet another major insurer raises serious questions about the financial viability of the pipeline project, which has faced mounting opposition from environmental and community activists across East Africa and globally.
Source: citizen.org
