ICOGU asked to stop insuring oil and gas projects in Uganda and Tanzania

Summary:

• Youth climate activists from Uganda and Tanzania urge the Insurance Consortium for Oil and Gas Uganda (ICOGU) to stop insuring oil and gas projects in the region due to climate, environmental, and social risks. They highlight displacement, inadequate compensation, and the threat to future generations. The activists emphasize the need for sustainable practices and call on ICOGU to prioritize ethical investment.

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KAMPALA, Uganda — Youth climate activists and environmental advocates from Uganda and Tanzania have jointly issued a compelling call to action directed towards members of the Insurance Consortium for Oil and Gas Uganda (ICOGU). Comprised of 19 insurance companies collaborating to provide insurance for Uganda’s oil and gas projects, ICOGU faces mounting pressure to reconsider its involvement in projects such as Tilenga, Kingfisher, and the East African Crude Oil Pipeline (EACOP).

In a concerted effort to safeguard their futures and those of their nations against the climate, environmental, and social risks associated with the aforementioned oil projects, the youth are urging ICOGU to immediately cease insuring ventures linked to the oil and gas industry in both Uganda and Tanzania.

Statistics reveal that ICOGU provided insurance worth USD 13 million (UGX 50.4 billion) for the Tilenga, Kingfisher, and EACOP oil projects in 2023, and USD 14.6 million for the same projects in 2022. The youth unequivocally assert that this financial support is unacceptable, given the climate risks posed by the projects, as well as the documented social and environmental impacts experienced by project-affected communities.

According to available information, the full value chain emissions for the EACOP project alone, if constructed and operated, would exceed 379 million metric tonnes of carbon over a 25-year period. This figure stands 25 times higher than the combined annual carbon emissions of Uganda and Tanzania.

Moreover, over 120,000 individuals, including many youths, have been displaced to facilitate the EACOP and Tilenga projects. Compulsory land acquisitions for the oil sector often result in delayed, inadequate, and unfair compensation, adversely affecting the livelihoods and rights of affected communities, particularly youth.

Ms. Hilda Nakabuye, co-founder of Fridays for Future Uganda and a prominent climate activist, emphasizes, “It is important for ICOGU and its members to prioritize sustainability, social responsibility, and ethical investment practices. By insuring oil and gas projects, ICOGU members not only demonstrate a lack of sustainability and social responsibility but also jeopardize their long-term business goals.”

Mr. Brighton Aryampa, a youth mobilizer and environmental activist, echoes this sentiment, stating, “The insurance industry is not immune to the impacts of climate change. The escalating frequency and severity of natural disasters have necessitated significant payouts, placing strain on insurers worldwide. It does not make business sense for Ugandan insurers to invest in a sector that threatens their long-term survival for short-term gains.”

The burning or utilization of fossil fuels, including coal, oil, and gas, has been identified as the primary driver of climate change, accounting for 75 percent of global greenhouse gas emissions and nearly 90 percent of all carbon dioxide emissions.

Baraka Machumu, a Tanzanian youth climate activist, highlights the vulnerability of East African youth in sectors such as agriculture, fisheries, tourism, and business to the impacts of climate change. He asserts, “By investing in fossil fuels, ICOGU and other insurers are endangering the livelihoods of East African youth and creating a restive environment that is detrimental to businesses.”

Ireen Twongirwe, a youth gender and climate activist, concludes, “We call upon ICOGU and its members to heed our call and take immediate action to cease insuring projects that perpetuate climate change and harm our communities. Together, we have the power to enact positive change and build a sustainable future for generations to come.

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