Global insurance giant Chubb has updated its environmental policy to formally rule out providing insurance for the controversial East African Crude Oil Pipeline (EACOP). According to Rainforest Action Network (RAN), this makes Chubb the 30th major insurer to refuse EACOP.
What is EACOP and Why is it Controversial?
The East African Crude Oil Pipeline (EACOP) is a proposed 1,443-kilometer heated pipeline that would transport crude oil from oil fields near Lake Albert in Uganda to the port of Tanga in Tanzania. If built, it would be the world’s longest heated crude oil pipeline.
The construction of EACOP poses grave risks to people, nature, and the climate. Global environmental and human rights organizations, including the #StopEACOP campaign has raised the alarm over its destructive impacts. Some of the key concerns include:
- Annual emission of over 34 million tons of CO₂
- Displacing thousands of people along the route
- Threatening endangered wildlife habitats and protected areas
- Putting the water supply and livelihoods of millions around Lake Victoria at risk
For more information, visit 350 Japan’s campaign page.
Tokio Marine’s Involvement in EACOP
While many global insurers have walked away from EACOP, Tokio Marine, one of Japan’s largest insurers, has yet to rule out its involvement. Civil society groups in Japan and internationally have been urging the company for years to commit to staying out of the project. However, Tokio Marine has not responded explicitly, saying that it “cannot comment on an individual project.”
In February 2024, thousands of people across 31 countries took part in the Global Week of Action, calling on insurance giants to cut ties with fossil fuel projects like EACOP. After this, Tokio Marine announced a new climate policy in April but failed to address its potential involvement in EACOP.
In May last year, we published a blog post from a local Ugandan activist’s perspective on EACOP, calling on Tokio Marine to deny its involvement in the project. However, after nearly a year, the company chose to remain silent despite the serious environmental and human rights concerns.
Read more: Tokio Marine has yet to deny involvement in EACOP: First-Hand Experience from Ugandan Activist, Hilda Flavia Nakabuye (May 23, 2024)
A Global Shift Away from EACOP in the Insurance Industry
Chubb’s announcement comes on the heels of similar decisions by 29 peer insurance giants, including Zurich, AXA, Allianz, and Munich Re—all of which have rejected involvement in EACOP.
Beyond insurance, 43 financial institutions including Japan’s “three giants” –MUFG, SMBC, and Mizuho– have also denied their financial support to EACOP, strengthening a growing global consensus against the project.
It’s Time for Tokio Marine to Take Responsible Action as an Industry Leader
Refusing to insure harmful fossil fuel projects like EACOP is a business decision for which a global leader like Tokio Marine is responsible. Tokio Marine’s rejection of EACOP would have a significant impact on Japan’s insurance sector.
The world is watching –will Tokio Marine join the 30 peer insurers to make a significant move toward climate justice?
