Munich Re Says It Won't Insure East African Oil Pipeline
07 April 2022 - 2:20AM
Dow Jones News
By Maitane Sardon
Munich Re has decided to opt out of the East African crude-oil
pipeline, joining other financial institutions in rejecting the
controversial project on climate concerns.
In a statement on its website on Wednesday, the German reinsurer
said it had made the decision not to insure EACOP, a 900-mile
pipeline from Uganda to Tanzania whose construction is slated to
commence in early 2025.
EACOP has attracted criticism from environmental groups for its
potential to add up to 34.3 million tons of carbon dioxide and
other greenhouse gases that contribute to climate change into the
atmosphere.
Munich Re said it had opted to distance itself from the project
after conducting an environmental, social and governance
assessment. It said it had informed its underwriting community
about its stance a year ago.
Munich Re, which has pledged to achieve net-zero emissions
across its investment and insurance portfolios by the mid-century,
joins other financial institutions in stepping away from the export
pipeline. Germany's Hannover Re SE, France's AXA SA and
Switzerland's Zurich Insurance Group AG and Swiss Re AG have all
ruled out backing the project, according to a group of
environmental and human rights organizations tracking the moves of
banks and insurance companies.
Write to Maitane Sardon at maitane.sardon@wsj.com
(END) Dow Jones Newswires
April 06, 2022 12:05 ET (16:05 GMT)
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