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 email@example.com
(END) Dow Jones Newswires
April 06, 2022 12:05 ET (16:05 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.