Page 16 - DMEA Week 05 2022

DMEA NEWS IN BRIEF DMEA

the region to see FID on a $10bn mega-project the fact that activists’ complaints have led as steel and construction materials to climb
taken by IOCs.” the British export credit agency UK Export sharply in 2021.
Altogether, these three initiatives are Finance (UKEF), along with 11 commercial Nevertheless, ESG activists have a strong
expected to carry a price tag of $10bn. The banks, to opt out of providing funding for the enough perception of success that they are
EACOP pipeline is anticipated to account for pipeline and have also convinced the French likely to continue pushing on this front.
about half of the total, even though its price insurer AXA not to provide coverage for the Landry Ninteretse, the regional director
was originally estimated at about $3.55bn. project. All of these institutions have cited for Africa of 350.org, made clear that his
The French major has never offered a climate considerations as the reason for their organisation intended to keep fighting. In a
detailed explanation as to why it raised the decision, describing EACOP as incompatible press release dated January 31, he declared:
cost estimate for the pipeline last year. Some with their commitment to fund projects in “EACOP is not inevitable. In fact, it needs
observers have speculated, however, that line with the Paris Agreement. billions of dollars from private banks around
TotalEnergies and its partners are having to It is not entirely clear whether (or to what the world to become viable. Most of these
pay higher risk premiums because of activists’ extent) the activist campaign has affected banks have already distanced themselves from
efforts to discourage banks from investing in the cost of the EACOP pipeline. After all, this controversial project. Together, we can
the EACOP project on (ESG) environmental, ESG factors are not the only consideration further pressure the reluctant ones and stop
social and governance grounds – and that for TotalEnergies and its partners, and this fossil finance flowing into the East Africa
these higher premiums are driving up the bill cost increases were perhaps unavoidable, region.”
for the pipeline. given that high demand and supply chain NEWSBASE
Advocates of this view have pointed to disruptions drove prices for key supplies such

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