Sign in Subscribe
Banking industry

Indigenous Communities Demand End to Fossil Fuel Financing, Criticize Global Banking Giants

Strategic Insights

— 2 min read

As the UN climate change conference in Glasgow came to a close, indigenous community rights activists gathered outside the offices of JPMorgan Chase in Glasgow, demanding an end to financing oil and gas projects in sensitive ecosystems. The protests were significant for Uganda, where local and international banks have faced opposition from conservation groups pushing against the funding of the East African Crude Oil Pipeline (EACOP). Despite global opposition to the project, JPMorgan Chase has maintained investments in fossil fuel companies, including those involved in destructive and polluting extraction methods such as tar sands and coal mining.

Key Takeaways:

  • The East African Crude Oil Pipeline (EACOP) is a 1,445km heated oil pipeline from Uganda to Tanzania, expected to cost $3.5 billion, with $2.5 billion coming from a project finance loan.
  • The pipeline is expected to generate 34 million tonnes of carbon emissions each year and negatively impact over 120,000 individuals along the route.
  • French banks BNP Paribas, Société Générale, and Crédite Agricole have pulled out of a proposal to finance the construction of the EACOP, joining Barclays, Credit Suisse, and ANZ in steering clear of the project.
  • The UK's Export Credit Agency, UKEF, has ruled out finance for the project, and the African Development Bank has also declined to provide direct finance, citing a focus on renewable energy.
  • JPMorgan Chase has invested over $316 billion in fossil fuel projects since 2015, making it the worst offender among the world's largest banks.
  • The bank has pledged to cut back operational carbon intensity by 35% by 2030 and reduce end-use carbon intensity by 15% as part of its net-zero commitments, but activists argue these efforts are insufficient given the current level of fossil fuel financing.
  • The fossil fuel lobby was disproportionately large at COP26, with 503 delegates from fossil fuel companies, outnumbering the combined total of eight delegations from countries worst affected by climate change in the last two decades.
  • Indigenous communities are demanding that fossil fuel lobbyists be shut out of climate change talks and that governments prioritize a fossil-free future.

Statistics:

  • $3.8 trillion: the amount of money the world's largest banks have invested in oil and gas projects since 2015.
  • 34 million: tonnes of carbon emissions expected to be generated annually by the EACOP pipeline.
  • 120,000: individuals expected to be negatively impacted by the EACOP pipeline.
  • 316 billion: the amount of money JPMorgan Chase has invested in fossil fuel projects since 2015.
  • 503: the number of delegates from fossil fuel companies at COP26.
  • 35%: the reduction in operational carbon intensity pledged by JPMorgan Chase by 2030.
  • 15%: the reduction in end-use carbon intensity pledged by JPMorgan Chase by 2030.

Sources:

  • The Independent
  • AllAfrica Global Media
  • Global Witness
  • Corporate Accountability
  • Corporate Europe Observatory (CEO)
  • Glasgow Calls Out Polluters

Read more