Mounting pressure from climate and human rights activists has led numerous lenders to back out of the controversial East African Crude Oil Pipeline (EACOP) project. This month, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation (SMBC) ruled out of financing the project, adding to the list of 25 banks and 23 insurance companies that have publicly committed to not support EACOP.

Meanwhile, in April 2023, TotalEnergies signed a deal with China Petroleum Pipeline Engineering for the supply and construction of the pipeline. China Petroleum Pipeline Engineering (CPP) is a subsidiary of state-owned China National Petroleum Corporation.

EACOP is the largest oil pipeline project in the region, running across much of Uganda and Tanzania. The project is expected to trigger massive threats to the environment and local communities along the pipeline. Various protected areas and critical habitats will be negatively impacted, including Uganda’s Murchison Falls National Park. Several Marine Protected Areas will also be at risk when oil is transferred offshore. It is estimated that, once operational, the pipeline will emit 34 million tonnes of carbon dioxide each year. On top of this, more than 13,000 households will be affected by land acquisition for the EACOP. In some cases, this has allegedly resulted in a loss of people’s land as well as livelihoods. Read more about the negative impacts of the EACOP here.