Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

World’s largest reinsurer will not provide EACOP cover

© Supplied by Uganda National OilStorage tanks with people in high vis jackets
Picture shows; Jinja storage terminal. Jinja, Uganda . Supplied by Uganda National Oil Co. (UNOC) Date; 23/01/2022

Munich Re will not insure the East African Crude Oil Pipeline (EACOP), throwing up another challenge for the TotalEnergies-driven project in Uganda and Tanzania.

The insurance giant said it had set out decarbonisation targets in 2020 for its liabilities, investments and operations. It is also a member of the United Nations’ Net Zero Asset Owner Alliance and a founder of the Net Zero Insurance Alliance.

Munich Re said it has a “clear and science-based stance to support the Paris Climate Goals. We are constantly monitoring our progress against this ambition and reporting transparently in our annual report.”

Beyond the emissions targets, Munich Re also said it had “rigorous ESG assessments” for large projects.

The insurer said it would not provide “direct, facultative and primary” cover for EACOP. The company said it had instructed its underwriting community of this a year ago.

“Our existing frameworks underline our commitment to decarbonise accompanied by respecting high business ethics,” it said.

Protestors have raised concerns about EACOP’s emissions and about its impact on local communities.

Under scrutiny

StopEACOP co-ordinator Omar Elmawi called for other insurers to follow Munich Re’s suit. “In particular, Allianz and Lloyd’s of London, both members of the Net Zero Insurance Alliance, must follow Munich Re and commit to never insure EACOP.”

Urgewald energy campaigner Regine Richter welcomed the announcement. Munich Re should “take the next step and do what is really required for humanity and the planet: commit to a world-leading policy which excludes all new oil and gas projects in line with a 1.5C limit, now”.

Total and CNOOC Uganda have taken a final investment decision (FID) on the Lake Albert development, including EACOP. Financing has not yet been completed, though.

StopEACOP is also targeting banks that may provide finance to the 1,443km heated pipeline.

The link will run from Kabaale in Uganda to the Tanzanian port of Tanga. The link will have six pumping stations.

Updated at 2:14 pm to tweak headline.

Recommended for you

More from Energy Voice

Latest Posts