Latest news with #EastAfricanCrudeOilPipeline
Daily Maverick
6 days ago
- Business
- Daily Maverick
Just Share accuses Standard Bank of evasion in climate reporting, calls for comprehensive accountability
Three years after a near-unanimous shareholder vote for greater climate accountability, Standard Bank is being accused of missing the mark on climate targets. At Standard Bank's 2022 annual general meeting, shareholders overwhelmingly voted in favour of a climate resolution calling for greater transparency and emission reduction commitments. Co-filed by Aeon Investment Management and shareholder activism organisation Just Share, the advisory resolution passed, backed by 99.74% of shareholders. It laid out the following roadmap: 31 March 2023: Report progress on calculating greenhouse gas (GHG) emissions from oil and gas exposure. 31 March 2024: Disclose a baseline of these emissions. 31 March 2025: Publish short-, medium- and long-term reduction targets aligned with the Paris Agreement. Now Just Share is accusing Standard Bank of delivering an 'incomplete picture' of its fossil fuel involvement by adjusting the metric tools by which it holds itself accountable. What you should know about the Paris Agreement, the APS and financial institutions Click on each block in the infographic for a pop-up explanation. Changing the metric or the mission? According to Standard Bank, it has ticked the baseline disclosure box. The bank's 2024 Climate Related Financial Disclosures Report states that its baseline disclosure has been 'completed for oil and gas'. What the bank has actually disclosed, Just Share argues, covers just 19% of its total oil and gas exposure and only 82% of on-balance sheet upstream oil and gas loans. 'It has not provided a timeline for setting targets for mid and downstream exposure,' said Karishma Bhoolia, a senior climate risk analyst at Just Share. 'This incomplete picture of Standard Bank's oil and gas exposure allows the bank to downplay the significant impact that its involvement in midstream projects such as the East African Crude Oil Pipeline will have on its oil and gas exposure and financed emissions.' Oil and gas value chain explained Upstream: Exploration and extraction of oil and gas Midstream: Transportation and storage thereof Downstream: Refining oil and gas and selling it to customers Moving the goalposts Standard Bank's 2022 Climate Policy committed the bank to reducing upstream oil and gas exposure by 5% by 2030. This target is nowhere to be found in the bank's 2025 Climate Policy. Now Standard Bank commits to ensuring that oil and gas lending remains under 3% of its total loans and advances by 2030. According to Just Share, this new figure is both weaker and more ambiguous. The updated policy is based around physical intensity metrics (a measure of emissions per barrel of oil) without accompanying absolute targets or timelines, a report by Just Share states. 'The targets are weaker than those contained in the bank's 2022 Climate Policy and allow the bank to significantly increase its exposure to oil and gas,' Boohlia said. Boitumelo Sethlatswe, the head of sustainability at Standard Bank, said that their updated targets and disclosures balanced climate ambition with the realities of sub-Saharan Africa's development needs. 'We have set robust, measurable targets that directly address our material oil and gas financed emissions,' he said. 'These include a 10% reduction in physical intensity for upstream oil and gas, limiting upstream exposure to 3% of total loans, and ensuring we finance at least three times more renewable energy than non-renewable power.' These targets are grounded in the International Energy Agency's (IEA) Announced Pledges Scenario (APS), which is compatible with the Paris Agreement's objectives, Sethlatswe said. What is a baseline emission? An article by global consulting firm McKinsey describes baseline emissions as a 'footprint', meaning a measure of emissions recorded during a specific period, like a year. This measure is then taken as a starting point against which to measure change. From Paris to pledges The bank appears to have reoriented its climate ambition away from the Paris Agreement. In its 2024 Climate Related Financial Disclosures Report, the bank states that it is 'committed to the goals of the Paris Agreement'. While the 2022 policy referenced targets aligned with the Paris Agreement, the updated 2025 version uses the IEA's Announced Pledges Scenario (APS) as a pathway, which is a model that assumes countries will meet their net zero targets, probably leading to a 1.7℃ temperature rise by 2100. While the IEA's Net Zero by 2050 scenario (which aligns with 1.5℃ ) is mentioned, the only reference to the Paris Agreement in the 2025 Climate Policy is to its principle of 'common but differentiated responsibilities'. No explanation is offered for the change. Standard Bank maintains that its current actions deliver on the requirements of the 2022 shareholder resolution. The East African Crude Oil Pipeline elephant One of the blind spots in Standard Bank's climate reporting, according to Just Share, is midstream oil and gas, which includes its potential financing of the East African Crude Oil Pipeline (EACOP). Just Share says that the 2030 limit the bank touts applies only to upstream investments and that there is no restriction on midstream and downstream exposure. 'EACOP funding is a midstream oil and gas asset,' Boohlia explained. 'The 2030 limit has no impact on this funding. Thus, Standard Bank could continue to fund EACOP and other projects like it without limit.' Standard Bank's oil and gas portfolio accounts for nearly 80% of its operational emissions, according to Sethlatswe. 'We continue to work on improving data availability for midstream and downstream activities, which will inform future target setting,' he said. How does Standard Bank stack up? An assessment of South Africa's 13 largest banks by non-profit group Bank Green paints a bleak picture. Not one received a 'great' rating when it came to climate responsibility. According to the group's findings, one third of the banks assessed failed to provide transparency regarding lending to the fossil fuels and renewable energy sectors, and only five out of the 13 reported any financed emissions. Transparency, continuous improvement, and supporting a just energy transition remained a commitment to Standard Bank, Sethlatswe said. Investor pressure mounting As a shareholder itself, Just Share says it will continue to hold Standard Bank accountable. It recommends that investors hold Standard Bank accountable to update its 2025 Climate Policy to: Include emission reduction targets aligned with the Paris 1.5℃ pathway. Provide a strategy of how these targets will be met. Set targets across the full oil and gas value chain. 'Banks can either exacerbate the climate emergency or play a constructive role in urgently reducing greenhouse gas emissions and financing the transition to a low-carbon, inclusive economy,' Boohlia said. DM
Arabian Post
6 days ago
- Business
- Arabian Post
East African Crude Oil Pipeline Hits Key Milestone
The East African Crude Oil Pipeline , stretching 1,443 kilometres from Uganda to the Tanzanian port of Tanga, has passed the 60 percent completion mark, marking a significant step forward in one of Africa's largest infrastructure projects. This progress highlights the accelerating momentum in the development of critical energy infrastructure in the East African region, with implications for the economies and geopolitics of multiple countries. The pipeline, designed to transport up to 216,000 barrels of crude oil per day from the oil fields in Uganda's Lake Albert region to the Indian Ocean coast in Tanzania, aims to bolster export capacity and drive regional economic growth. It is being developed by a consortium led by the French oil giant TotalEnergies and China National Offshore Oil Corporation , alongside the governments of Uganda and Tanzania. The project is expected to be operational by 2025, facilitating Uganda's first significant oil exports and enhancing Tanzania's position as a regional energy hub. Reports from the Tanzanian construction sites indicate steady progress on various segments of the pipeline. Significant advancements have been made on the laying of pipes through diverse terrains including wetlands, forests, and agricultural lands. The project faces ongoing challenges due to the difficult environmental conditions and the need to balance ecological preservation with development objectives. However, the construction teams have implemented numerous mitigation strategies to reduce environmental impact, including careful route planning and community engagement efforts. ADVERTISEMENT Beyond the engineering and logistical achievements, the EACOP project has attracted considerable attention from environmental groups and local communities. Concerns over potential oil spills and long-term environmental degradation have been raised, particularly given the pipeline's passage through sensitive ecosystems such as the Lake Victoria basin and the Kazinga Channel. Environmentalists have urged the companies and governments involved to uphold rigorous safety standards and transparency to safeguard biodiversity and water resources. On the economic front, the pipeline is expected to create thousands of jobs across Uganda and Tanzania during construction and operation phases. Both governments project increased revenues from oil exports, which could translate into enhanced public services and infrastructure development. The project is also seen as a driver for regional integration, potentially strengthening trade ties within the East African Community through improved energy connectivity. Internationally, the EACOP project positions East Africa as a growing player in the global oil market. The completion of this pipeline will diversify crude oil supply routes and reduce reliance on pipelines running through unstable regions, such as those traversing Sudan or South Sudan. This could have broader implications for energy security in the region and beyond, influencing investment flows and geopolitical alignments. Technical reports indicate that the pipeline's infrastructure includes advanced safety features, such as leak detection systems and automated shut-off valves, which are essential in mitigating risks associated with large-scale oil transportation. The project consortium has committed to adhering to international standards throughout the construction and operational phases, a commitment that will be closely monitored by independent auditors and regulatory authorities. The financing of the EACOP pipeline reflects a mix of public and private investment, with considerable involvement from international financial institutions and development banks. This diversified funding approach aims to ensure the project's sustainability and financial viability while aligning with global best practices on transparency and governance. Despite fluctuations in global oil prices and increasing pressure for greener energy alternatives, the pipeline continues to attract financial backing due to its strategic importance. ADVERTISEMENT Local communities along the pipeline route have experienced both benefits and challenges. Job opportunities and infrastructure improvements have contributed positively to many areas, but there have also been disputes over land acquisition and compensation. Authorities from Uganda and Tanzania have been engaged in ongoing dialogues with community representatives to address grievances and ensure fair treatment for affected populations. The pipeline is expected to play a transformative role in Uganda's oil sector, allowing the landlocked country to export crude directly to global markets. This is a vital step in unlocking the commercial potential of Uganda's oil reserves, which were discovered over the past two decades but remained largely untapped due to logistical hurdles. With the pipeline nearing completion, Uganda's oil production is poised to increase significantly, potentially altering the country's economic landscape. For Tanzania, the pipeline's terminus at the port of Tanga offers prospects for expanding the country's industrial base, including refining and petrochemical industries. The project complements Tanzania's ambitions to become a regional energy corridor, benefiting from both oil exports and transit fees. The government has indicated plans to develop ancillary infrastructure, such as storage facilities and transportation networks, further integrating energy supply chains. Critics caution that the project must carefully navigate the evolving global energy transition. With increasing commitments from many countries and corporations to reduce carbon emissions and shift toward renewable energy sources, the long-term viability of new oil infrastructure faces scrutiny. Balancing economic growth from oil revenues with environmental sustainability and climate goals remains a complex challenge for the EACOP consortium and East African governments. The pipeline's construction also intersects with broader regional security concerns. Ensuring the pipeline's protection from sabotage, theft, and other security threats is paramount, given its economic significance. Governments have invested in coordination efforts among security agencies to safeguard the infrastructure, which spans multiple jurisdictions and sensitive areas.
Reuters
23-05-2025
- Business
- Reuters
UN expert asks TotalEnergies to act on human rights concerns
PARIS/LONDON, May 23 (Reuters) - TotalEnergies ( opens new tab must urgently address fresh allegations of abuses at its contentious oil pipeline project in East Africa, an independent U.N. human rights expert said ahead of the French energy firm's annual shareholder meeting on Friday. In a statement, opens new tab released late on Thursday, Special Rapporteur on environmental defenders Michel Forst said the company must take immediate action to protect activists linked to the East African Crude Oil Pipeline and connected oilfields. It followed news that German asset manager Union Investment had dropped the company's bonds and shares from its sustainable investment funds over the issue. Union Investment said it made the decision after reviewing a fresh report from non-profit Just Finance International citing alleged abuses at the Kingfisher oil site in Uganda, part of the pipeline project. Forst said TotalEnergies had "failed to take effective steps addressing these abuses," adding it was "deeply troubling" that "it has instead consistently rejected the allegations as mere 'misconceptions' of the projects' impact". As a French company, it was bound by the international Aarhus Convention to ensure individuals were not penalised or harassed for their opposition to the projects, Forst added. TotalEnergies said in a statement on Friday that it "does not tolerate any threats or violence against those who peacefully defend and promote human rights" and reminds those it works with of its position on the subject. The company added that it worked with Ugandan authorities "to stress to the Police the need to ensure that due process is followed, the protesters are treated well, and their rights are respected while in detention". The security team of its local unit also monitors the wellbeing of anyone arrested and ensures their representatives are able to visit them, it said. Forst backed a call by Union Investment for an independent investigation into the alleged abuses. As well as making the results public and acting on any shortcomings, he also asked the Total to use its leverage to prevent any further attacks.
TimesLIVE
23-05-2025
- Business
- TimesLIVE
Union Investment cuts TotalEnergies stake over East Africa allegations
Germany's Union Investment has dropped French oil major TotalEnergies from its sustainability funds and called for an independent human rights audit following fresh allegations of abuses at a $15bn (R268.66bn) project in East Africa. The move by Union, a top-20 investor according to LSEG data, comes ahead of TotalEnergies' annual shareholder meeting on Friday and could potentially undermine its standing among investors focused on environmental, social and governance issues. TotalEnergies denied the allegations made by non-profit Just Finance International (JFI) concerning the Kingfisher oil site in Uganda, part of the East African Crude Oil Pipeline (EACOP) project in which Total has a 62% stake. A spokesperson for the oil major added it was in talks with Union Investment about its African projects. Union declined to confirm the scale of its divestment. Data from industry tracker Morningstar Direct showed Union held around 50 million euros worth of TotalEnergies shares and bonds across its sustainable funds, and still holds a stake of around €900m (R18.28bn) across other funds.
Morocco World
10-04-2025
- Business
- Morocco World
France's Ecological Legacy in Africa: Time for Change or More Empty Promises?
Governments have changed, and leaders have come and gone, but oil platforms, uranium mines, cement factories, and strategic ports have remained. For decades, France has not only extracted Africa's wealth—it tried to drain the continent to the last drop, leaving behind devastated nature, poverty, and corruption. Today, Paris declares its intention to change its African strategy. But how sincere are these intentions? In recent years, France has been forced out of the continent: its troops are leaving West and Central Africa, while its businesses are facing nationalisation and arrests . Power is finally returning to African hands, compelling Paris to rethink its role on the continent to retain at least some foothold. In 2023, President Macron unveiled yet another 'new African strategy', announcing a shift away from old models in favour of 'equal partnership' and 'sustainable development.' Paris promises to focus more on projects aimed at preserving natural areas and biodiversity, developing renewable energy, and adapting to climate change. France is already involved in environmental initiatives in Africa through programs such as the Green Wall Accelerator , Official Development Assistance (ODA) , Agence Française de Développement (AFD) , and Ambition Africa . The total aid package under these initiatives is believed to exceed €15 billion. However, behind the lofty rhetoric, the reality remains unchanged: mines continue to poison water, oil spills into mangrove lagoons, and industries spew toxic waste into the air. So, is France truly ready for real change – or is this just a new facade for an old exploitation model? 'Françafrique' is Still Alive For decades, France built the 'Françafrique' system—a complex network of shady deals with African elites that ensured its unrestricted access to resources. In exchange for political and military support, Paris maintained control over the economies of its former colonies, turning them into raw material appendages of French corporations. Gabon is a prime example. Rich in oil and uranium, it became a strategic asset for France. Large French companies like Elf, TotalEnergies, Perenco, and Bolloré Group secured multimillion-dollar deals with the Bongo regime for years, illegally enriching Gabon's elites , while destroying nature and exploiting the population. France's Orano has been developing uranium mining in Niger for decades, leaving behind 20 million tons of radioactive waste. Experts estimate that radiation levels near these mines exceed permissible limits by 100 times, while uranium concentrations in local drinking water reach 15 mg/L — 500 times the safe threshold. Studies indicate a rise in cancer cases in the region over the past two decades. The $5 billion East African Crude Oil Pipeline (EACOP) megaproject, involving TotalEnergies, plans to build a 1,443-km oil pipeline from Uganda to Tanzania. At first glance, it is a symbol of successful investment and development of the region's energy infrastructure. However, environmental organizations warn that the project threatens to destroy 2,000 km of natural landscapes, including national parks and reserves, while displacing over 100,000 local residents. Bolloré Group, which controls key ports and transport routes in West and Central Africa, has become notorious after lawsuits in France for corruption and illegal actions in a number of deals. The company has been repeatedly criticized for its negative environmental and social impact. The Oakland Institute has accused it of illegal land seizures , environmental degradation, and human rights violations in several African countries. Environment and Social Issues Paradoxically, Africa's natural wealth has become a source of suffering for its people. Profits from oil, uranium, and gold extraction accumulate in the pockets of corporations and ruling elites, while the consequences fall on ordinary citizens. Where mines and factories emerge, forests disappear, rivers dry up, and land turns barren. Jobs are replaced by disease, prosperity – by poverty. Resource extraction zones are crisis hotspots, with poverty rates 15–30% higher than the national average. Fishermen lose their catches, farmers lose their harvests, and entire villages turn into abandoned ruins. Entire communities are faced with the choice of abandoning their homelands or struggling to survive. Environmental degradation is pushing young people down dangerous paths – towards migration or radicalisation. According to the 2024 Global Terrorism Index , over 50% of all terrorism-related deaths were recorded in the Sahel countries of Mali, Niger, and Burkina Faso. Political conflicts here are inseparable from the catastrophic consequences of extractive economies. Migration is becoming another problem. By March 2025, approximately 5 million internally displaced people were registered in the central Sahel alone. Many are fleeing not only war and terror, but also the scorched earth destroyed by industry that serves the interests of transnational companies. Civil Society: A Driver of Change While governments and corporations present 'sustainability strategies,' the real frontline is at the level of communities, villages and towns that bear the brunt of environmental exploitation. There are no big budgets or powerful lobbyists here. There are ordinary people fighting to preserve what corporations see as mere figures in an annual report—clean water, land, and the right to a future. Organisations such as ROTAB , Brainforest , Environmental Rights Action , and Synaparcam play a crucial role in defending environmental interests and local rights. They document ecological crimes, file lawsuits, and take to the streets. Thanks to their efforts, high-profile international projects often face public resistance. In 2021, activists in Senegal temporarily suspended a zircon mining project by the French consortium Eramet that threatened a unique ecosystem and the economic survival of dozens of villages. In Côte d'Ivoire, in 2022, the Ivorian Civil Society Observatory compelled the authorities to reconsider deforestation plans in the context of a forest protection initiative related to the cocoa industry. These are rare cases where people's and nature's interests prevailed over industrial greed. Expert and environmentalist opinions highlight the depth and complexity of the problems. Aicha Dahou, a journalist for Algerian TV1, notes , 'France has been plundering Africa for decades, extracting its riches—uranium, gold, and oil—and turning the continent into a nuclear testing ground, now drowning it in millions of tonnes of radioactive waste.' Her compatriot, journalist Asmahan Soltan, adds , 'France covers about 70% of its electricity needs with uranium, the key fuel for its 50+ nuclear plants. It lights up its cities at the cost of millions of Nigeriens suffering from the consequences of uranium mining.' Old Contracts, New Challenges France claims a new course, but the reality remains unchanged: millions of tonnes of extracted raw materials, destroyed forests, polluted rivers, and persistent poverty. Anti-French protests and demands for economic sovereignty are not an accident, but the inevitable outcome of decades of exploitation. Real partnership is possible only on one condition: revising old contracts, imposing strict environmental standards and ensuring the rights of African nations to their own resources. It is time for France to stop passing off pretty rhetoric as real change. France must stop masking inaction with polished rhetoric. However, responsibility does not lie with Paris alone — all of Europe must realise that Africa's ecological exploitation threatens not just its future but global stability. If this vicious cycle is not broken, Africa will remain trapped in crisis, and Europe will be held hostage to the consequences of its policies. Tags: Changefrance africafrance ecology
