Speaking at COP29 in Azerbaijan about the impact of climate change on Africa, the executives of Afreximbank promised to double-down on their commitment to a just energy transition on the continent. But, four months later, the multilateral lender has confirmed its support for a controversial pipeline that would carry crude oil from Uganda to the Tanzanian coast for export overseas.
It was announced this week that the African Export-Import Bank – whose main shareholders are African governments – would be part of a syndicate of financial institutions committing a first tranche of external financing to the East Africa Crude Oil Pipeline (EACOP) project, which is majority-controlled by French energy giant TotalEnergies.
Other lenders include South Africa’s Standard Bank, Uganda’s Stanbic Bank and KBC Bank, and Saudi Arabia’s Islamic Corporation for the Development of the Private Sector, according to a statement published by EACOP’s developer, which called the financing deal “a significant milestone”.
The loan is in the range of $1 billion, with two further tranches expected, according to the government-owned Ugandan newspaper New Vision. Afreximbank earlier indicated it would provide $200 million to the project.
Samuel Okulony, CEO of the Environment Governance Institute, a Ugandan NGO, told Climate Home that Afreximbank’s actions are in direct contradiction of their “empty words” on climate change.
“Afreximbank is funding the destruction of our own people, while at the same time speaking about energy transition and a commitment to a cleaner future. It is a big disappointment,” he said.
Afreximbank did not respond to Climate Home’s request for comment.
Oil pipeline faces strong opposition
The 1,443-km pipeline would carry crude oil extracted from oilfields under development near Lake Albert in Uganda to Tanga port in Tanzania for onward export to international markets. The long-delayed project has been the target of protests and lawsuits from campaigners that accuse the project developers of displacing communities, damaging the environment and fuelling the climate crisis.
A coalition of regional civil society groups said on Thursday it is a “shame” that the EACOP developer would announce financing for the project on a day many Ugandans had come face-to-face with the dire impacts of global warming. This stark reality was evident on the front page of the state-owned New Vision newspaper, which published the EACOP announcement just above a picture of the deadly floods that hit the capital Kampala this week.
The coalition said it is considering “legal and other actions” against financial institutions that “continue to prioritise profits over the lives and wellbeing of East Africans. Campaigners said the project has already displaced thousands of people and stands to harm plants and animals, while also threatening livelihoods in the farming and tourism sectors.
‘Desperate’ search for funders
The construction of the pipeline is a key element in Uganda’s push to become an oil producer, which the government says would propel the country’s economic growth.
The East African nation has been looking to exploit its natural resources for nearly two decades since oil reserves were discovered in the Albertine Rift Basin near the Democratic Republic of Congo. But development stalled as the plans faced local opposition and the project struggled to attract external financing.
Several Western banks, including BNP Paribas, Société Générale, Barclays and Standard Chartered, have publicly stated their intention not to pour money into the project.
Ugandan energy minister Ruth Nankabirwa, who has blamed activists for the project’s setbacks, said last September that at least seven European banks had committed, in private, to finance the project, the Financial Times reported – but no official announcement has materialised since then.
Where East African oil pipeline meets sea, displaced farmers bemoan “bad deal” on compensation
Afreximbank, Standard Bank, Stanbic Bank and Islamic Development Bank had all indicated their willingness to fund the pipeline construction in the past, while KCB Bank of Uganda is only being linked with the project now.
Okulony said Wednesday’s announcement amounted to a “desperate move” from the EACOP developer to demonstrate progress and drum up additional interest from investors in the project.
He added that regional African banks are becoming lenders of last resort for the oil industry in the continent, “covering up a gap” left by the accelerating withdrawal of Western lenders.
Oil investments clash with climate pledge
Afrieximbank – whose main shareholders are the Egyptian and Nigerian governments – is a major backer of fossil fuel developments in Africa.
The lender’s exposure to the oil and gas sector increased in 2024, making up over a fifth of its total loans. It has bankrolled the expansion of oil production in Nigeria and the Republic of Congo, and last month it announced the intention to set up a $1-billion financing facility for the fast-growing oil industry in Guyana.
The investments contrast with Afrieximbank’s public attempts to bolster its climate credentials.
At the COP29 climate summit, the lender said it would advocate for policies and investments that accelerate Africa’s energy transition and called for a scale-up in climate finance. Its president, Nigerian economist Benedict Oramah, stressed that the devastating impacts of climate change on the continent would probably intensify in the next decade.


“We are at the point where taking action does not only suggest good environmental stewardship,” he said, “but must also be seen as a sound economic policy, considering that the cost of immediate and decisive action is far less than the cost of inaction and delayed efforts.”
Similarly, another backer of the Ugandan project, Standard Bank, wrote in its climate policy that it supports the Paris Agreement in transitioning Africa to a lower-carbon economy and aims for net zero emissions from its portfolio by 2050.
‘Assault’ on the planet
The STOPEacop coalition said the decision to fund a fossil fuel infrastructure project “is not just “irresponsible” but also an “active assault” on the planet and people. The banks supporting the project have marked themselves as “enemies of the people” which enable “climate chaos, environmental destruction” and support international profiteers at the expense of local communities, its statement added.
The project developer still needs to raise the majority of the funding for the pipeline construction, which has an expected price tag of $5 billion.
Okulony said EACOP is trying to attract interest from Islamic financial institutions, especially in Oman.
Ryan Brightwell, deputy director at campaigning group BankTrack, told Climate Home that EACOP has tried since 2018 to secure financing for the project, and the fact that it has now only finalised one tranche “only goes to show the extent of their troubles”.
The post African banks back oil export pipeline despite climate commitments appeared first on Climate Home News.
African banks back oil export pipeline despite climate commitments
Climate Change
Corpus Christi Cuts Timeline to Disaster as Abbott Issues Emergency Orders
The governor’s office said the city’s two main reservoirs could dry up by May, much sooner than previous timelines. But authorities still offer no plan for curtailment of water use.
City officials in Corpus Christi on Tuesday released modeling that showed emergency cuts to water demand could be required as soon as May as reservoir levels continue to decline.
Corpus Christi Cuts Timeline to Disaster as Abbott Issues Emergency Orders
Climate Change
Middle East war is another wake-up call for fossil fuel-reliant food systems
Lena Luig is the head of the International Agricultural Policy Division at the Heinrich Böll Foundation, a member of the Global Alliance for the Future of Food. Anna Lappé is the Executive Director of the Global Alliance for the Future of Food.
As toxic clouds loom over Tehran and Beirut from the US and Israel’s bombardment of oil depots and civilian infrastructure in the region’s ongoing war, the world is once again witnessing the not-so-subtle connections between conflict, hunger, food insecurity and the vulnerability of global food systems dependent on fossil fuels, dominated by a few powerful countries and corporations.
The conflict in Iran is having a huge impact on the world’s fertilizer supply. The Strait of Hormuz is a critical trade route in the region for nearly half of the global supply of urea, the main synthetic fertilizer derived from natural gas through the conversion of ammonia.
With the Strait impacted by Iran’s blockades, prices of urea have shot up by 35% since the war started, just as planting season starts in many parts of the world, putting millions of farmers and consumers at risk of increasing production costs and food price spikes, resulting in food insecurity, particularly for low-income households. The World Food Programme has projected that an extra 45 million people would be pushed into acute hunger because of rises in food, oil and shipping costs, if the war continues until June.
Pesticides and synthetic fertilizer leave system fragile
On the face of it, this looks like a supply chain issue, but at the core of this crisis lies a truth about many of our food systems around the world: the instability and injustice in the very design of systems so reliant on these fossil fuel inputs for our food.
At the Global Alliance, a strategic alliance of philanthropic foundations working to transform food systems, we have been documenting the fossil fuel-food nexus, raising alarm about the fragility of a system propped up by fossil fuels, with 15% of annual fossil fuel use going into food systems, in part because of high-cost, fossil fuel-based inputs like pesticides and synthetic fertilizer. The Heinrich Böll Foundation has also been flagging this threat consistently, most recently in the Pesticide Atlas and Soil Atlas compendia.
We’ve seen this before: Russia’s invasion of Ukraine in 2022 sparked global disruptions in fertilizer supply and food price volatility. As the conflict worsened, fertilizer prices spiked – as much from input companies capitalizing on the crisis for speculation as from real cost increases from production and transport – triggering a food price crisis around the world.
Since then, fertilizer industry profit margins have continued to soar. In 2022, the largest nine fertilizer producers increased their profit margins by more than 35% compared to the year before—when fertilizer prices were already high. As Lena Bassermann and Dr. Gideon Tups underscore in the Heinrich Böll Foundation’s Soil Atlas, the global dependencies of nitrogen fertilizer impacted economies around the world, especially state budgets in already indebted and import-dependent economies, as well as farmers across Africa.
Learning lessons from the war in Ukraine, many countries invested heavily in renewable energy and/or increased domestic oil production as a way to decrease dependency on foreign fossil fuels. But few took the same approach to reimagining domestic food systems and their food sovereignty.
Agroecology as an alternative
There is another way. Governments can adopt policy frameworks to encourage reductions in synthetic fertilizer and pesticide use, especially in regions that currently massively overuse nitrogen fertilizer. At the African Union fertilizer and Soil Health Summit in 2024, African leaders at least agreed that organic fertilizers should be subsidized as well, not only mineral fertilizers, but we can go farther in actively promoting agricultural pathways that reduce fossil fuel dependency.
In 2024, the Global Alliance organized dozens of philanthropies to call for a tenfold increase in investments to help farmers transition from fossil fuel dependency towards agroecological approaches that prioritize livelihoods, health, climate, and biodiversity.
In our research, we detail the huge opportunity to repurpose harmful subsidies currently supporting inputs like synthetic fertilizer and pesticides towards locally-sourced bio-inputs and biofertilizer production. We know this works: There are powerful stories of hope and change from those who have made this transition, despite only receiving a fraction of the financing that industrial agriculture receives, with evidence of benefits from stable incomes and livelihoods to better health and climate outcomes.
New summit in Colombia seeks to revive stalled UN talks on fossil fuel transition
Inspiring examples abound: G-BIACK in Kenya is training farmers how to produce their own high-quality compost; start-ups like the Evola Company in Cambodia are producing both nutrient-rich organic fertilizer and protein-rich animal feed with black soldier fly farming; Sabon Sake in Ghana is enriching sugarcane bagasse – usually organic waste – with microbial agents and earthworms to turn it into a rich vermicompost.
These efforts, grounded in ecosystems and tapping nature for soil fertility and to manage pest pressures, are just some of the countless examples around the world, tapping the skill and knowledge of millions of farmers. On a national and global policy level, the Agroecology Coalition, with 480+ members, including governments, civil society organizations, academic institutions, and philanthropic foundations, is supporting a transition toward agroecology, working with natural systems to produce abundant food, boost biodiversity, and foster community well-being.
Fertilizer industry spins “clean” products
We must also inoculate ourselves from the fertilizer industry’s public relations spin, which includes promoting the promise that their products can be produced without heavy reliance on fossil fuels. Despite experts debunking the viability of what the industry has dubbed “green hydrogen” or “green or clean ammonia”, the sector still promotes this narrative, arguing that these are produced with resource-intensive renewable energy or Carbon Capture and Storage (CCS), a costly and unreliable technology for reducing emissions.
As we mourn this conflict’s senseless destruction and death, including hundreds of children, we also recognize that peace cannot mean a return to business-as-usual. We need to upend the systems that allow the richest and most powerful to have dominion over so much.
This includes fighting for a food system that is based on genuine sovereignty and justice, free from dependency on fossil fuels, one that honors natural systems and puts power into the hands of communities and food producers themselves.
The post Middle East war is another wake-up call for fossil fuel-reliant food systems appeared first on Climate Home News.
Middle East war is another wake-up call for fossil fuel-reliant food systems
Climate Change
Are There Climate Fingerprints in Tornado Activity?
Parts of the Southern and Northeastern U.S. faced tornado threats this week. Scientists are trying to parse out the climate links in changing tornado activity.
It’s been a weird few weeks for weather across the United States.
-
Greenhouse Gases7 months ago
Guest post: Why China is still building new coal – and when it might stop
-
Climate Change7 months ago
Guest post: Why China is still building new coal – and when it might stop
-
Greenhouse Gases2 years ago嘉宾来稿:满足中国增长的用电需求 光伏加储能“比新建煤电更实惠”
-
Climate Change2 years ago
Bill Discounting Climate Change in Florida’s Energy Policy Awaits DeSantis’ Approval
-
Climate Change2 years ago嘉宾来稿:满足中国增长的用电需求 光伏加储能“比新建煤电更实惠”
-
Climate Change Videos2 years ago
The toxic gas flares fuelling Nigeria’s climate change – BBC News
-
Carbon Footprint2 years agoUS SEC’s Climate Disclosure Rules Spur Renewed Interest in Carbon Credits
-
Renewable Energy2 years ago
GAF Energy Completes Construction of Second Manufacturing Facility


