Insurance firms should shun the East African Crude Oil Pipeline

Police officers detain a Ugandan activist during a demonstration on September 15, 2023, over plans to build the East African Crude Oil Pipeline (EACOP), in Kampala, Uganda [File: Abubaker Lubowa/Reuters]

The project is already devastating local communities and will contribute to climate change if completed.

Last year was the hottest on record, with extreme weather events in many corners of the globe. It was also the year in which countries reached a landmark agreement at the UN Climate Conference (COP28) to begin “transitioning away from fossil fuels”.

If governments are to comply with this agreement and avert global climate collapse, there cannot be any new expansion of coal, oil and gas production. This includes the East African Crude Oil Pipeline (EACOP), one of the largest and most controversial fossil fuel projects currently under development.

Financing for EACOP is yet to be secured, but if it is and the project moves forward, a 1,443km (897-mile) pipeline will stretch from oil fields in western Uganda to the port of Tanga in eastern Tanzania.

The project’s completion would not only contribute to increased greenhouse gas emissions which fuel climate change but also harm local communities. That is why, Human Rights Watch is calling on insurance firms to stop providing support for it.

The pipeline is planned to traverse some of Africa’s most sensitive ecosystems, including Murchison Falls National Park and the Murchison Falls-Albert Delta Ramsar site. Pipeline ruptures, inadequate waste handling, and other pollution impacts would cause significant damage to the land, water, air and the species that rely on them.

Our research found that the project’s initial land acquisition process has already devastated thousands of people’s livelihoods in Uganda, causing food insecurity and household debt that has resulted in children dropping out of school.

During our interviews with local communities, many described being largely self-sufficient before the project began, using revenue from coffee, bananas and other cash crops to pay for school fees and other household expenses. When their land was allocated for the pipeline construction, they were not compensated immediately for it.

They waited an average of three to five years after the land evaluation process took place, and interviewees repeatedly told Human Rights Watch that the payments they received were not adequate to purchase replacement land. They said they were worse off than they were previously.

While they were waiting for compensation, many farmers understood that they were not permitted to access their land to tend perennial crops, and were therefore deprived of crucial income.

Residents described how the payment delays impacted their food security, pushing them to sell household assets, including livestock, or borrow money from predatory lenders at excessive rates to buy the food they would have previously grown on their plots and cover other expenses. This has left many families poorer and more insecure about their future.

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