By Abdullahi Lukman
The East African Crude Oil Pipeline (EACOP) faces significant setbacks as Chubb, one of the world’s largest fossil fuel insurers, announced on April 15, 2025, that it will not provide insurance for the controversial pipeline.
This decision follows the insurer’s updated conservation policy, which, since April 2024, excludes new oil and gas projects in globally recognized protected areas—EACOP is located in such an area, specifically near Murchison Falls National Park in Uganda.
Chubb’s refusal marks a significant milestone, making it the 30th major insurer to reject EACOP. It joins 43 banks and 29 other insurance firms that have already refused to finance the pipeline, a project that has been widely criticized for its environmental and social impacts.
“Chubb’s decision to exclude EACOP from its coverage is a win for people and the planet,” said Zaki Mamdoo, Campaign Coordinator for StopEACOP.
“Insurance should protect communities from extreme weather events and support a transition to renewable energy systems that benefit local economies.”
The EACOP project, a 1,443-kilometre crude oil pipeline running from Uganda’s Kabaale and Hoima districts to Tanzania’s port of Tanga, has been widely condemned for its adverse impacts.
These include the displacement of over 100,000 people, the destruction of livelihoods, forced evictions, and significant biodiversity loss, particularly in protected areas like Murchison Falls National Park.
Rachel Tugume, a resident affected by the EACOP project, expressed relief over Chubb’s decision. “EACOP has brought only suffering—forced evictions and destroyed farms.
No amount of money can replace what we’ve lost, but seeing global companies reject this project gives us hope,” she said.
Chubb’s announcement aligns with growing international pressure on financial institutions to move away from high-risk fossil fuel projects.
This decision is also seen as part of the broader movement within the insurance sector towards climate responsibility and the protection of vulnerable ecosystems.
Ethan Nuss, Senior Campaigner with Rainforest Action Network, praised Chubb for its role in addressing community and climate risks. “Chubb has the potential to be a true climate leader by strengthening its policies to protect frontline communities from the devastation of fossil fuel projects,” Nuss stated.
In response, the #StopEACOP campaign is now urging other major insurers, such as AIG, Liberty Mutual, Tokio Marine, Brit, and Chaucer, to follow Chubb’s lead. The campaign has emphasized the need for these firms to choose between short-term fossil fuel profits and supporting a just, climate-resilient future.
Meanwhile, more than 70 civil society organizations (CSOs) from Uganda, Tanzania, and the Democratic Republic of Congo have published an open letter urging the Government of Oman to withhold financial and diplomatic support for EACOP.
The letter highlights the environmental and human rights concerns associated with the pipeline and calls on Oman to support sustainable energy projects instead.
The letter also urges Oman to redirect investments toward renewable energy, sustainable agriculture, and eco-friendly infrastructure, aligning with the country’s Vision 2040 strategy for responsible, future-focused partnerships.
The CSOs warn that supporting EACOP would undermine global climate goals and contradict the ethical principles of Islamic finance.
The letter from the CSOs to the Omani government requests a formal response by April 20, 2025, urging Oman to take a stand in support of a just energy transition in Africa.
As the EACOP project continues to face mounting opposition, the pressure on insurers, governments, and financial institutions to reject investments in fossil fuel infrastructure grows, with many now calling for a global shift toward sustainable, renewable energy solutions.