THE DECISION IS PARTICULARLY SIGNIFICANT AS THE BANK HAD PREVIOUSLY CONFIRMED THAT IT WAS UNDERTAKING DUE DILIGENCE ON FINANCING FOR THE PROJECT
Standard Chartered has announced that it will not finance the East African Crude Pipeline (EACOP) project. The decision, which follows mounting pressure from the StopEACOP campaign, is particularly significant as the bank had previously confirmed that it was undertaking due diligence on financing the $ 5 billion project.
In response to public pressure, the London- based bank clarified to Bloomberg on Friday that it is not involved in the projects financing.
Local communities and activists have also raised concerns about the projects potential impact on the environment and the-well being of those who live in the pipelines path, not forgetting that the EACOP could trigger a dangerous spike in carbon emissions and the apparent threat to local wildlife populations, including protected and sensitive ecosystems.
"Standard Chartered had, until Friday, looked like the only European bank prepared to stand with TotalEnergies on EACOP. Its decision will make Total's attempt to pass off this project as somehow compatible with international standards like Equator Principles even less credible than they already" said Ryan Brightwell, research and Communications Director at BankTrack.