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Breaking: Complaint filed with US NCP against insurance broker Marsh over East African pipeline.

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By Witness Radio team.

Ugandan, Tanzanian and U.S.-based human rights and environmental groups have lodged a formal complaint alleging that Marsh is violating OECD guidelines for responsible business conduct by serving as insurance broker for the planned East African Crude Oil Pipeline (EACOP). The complainants are calling for Marsh to drop its insurance brokerage role for the EACOP.

Inclusive Development International and 10 human rights and environmental organizations in Uganda and Tanzania, which are remaining anonymous due to fear of reprisals, filed a complaint to the U.S. government today alleging that New York-based insurance giant Marsh, a member of the Marsh McLennan group, violated international guidelines for responsible business conduct by serving as insurance broker for the highly controversial East African Crude Oil Pipeline (EACOP). The groups submitted the complaint to the U.S. National Contact Point (NCP) for the OECD Guidelines for Multinational Enterprises, an office within the U.S. State Department tasked with handling allegations against American companies.

Marsh is the world’s leading insurance broker and risk advisor. According to its website, it protects and promotes possibility, helping their clients to dream bigger, reach further and plan for the opportunities ahead.

“An insurance broker’s role is often invisible to the public, which allows them to avoid accountability, but Marsh deserves to be scrutinized,” said Coleen Scott, a legal and policy associate at Inclusive Development International. “Marsh is playing a critical role enabling the East African Crude Oil Pipeline to move forward in the face of widespread opposition and overwhelming evidence that the project will be a disaster for Ugandans and for the planet.”

The OECD Guidelines set out principles and standards for responsible business conduct across a range of issues, including human rights and the environment. These standards apply to multinational enterprises with operations or headquarters in OECD countries, including the United States. While the OECD guidelines are non-binding, they are an important and widely accepted international standard for ethical business conduct. The complainants are calling on the U.S. NCP to consider the allegations against Marsh and make recommendations to the insurance broker to bring its conduct in line with these standards. This is the first NCP complaint filed against an insurance broker anywhere in the world.

The complaint alleges that by providing insurance brokerage services, without which the EACOP could not move forward, Marsh is contributing to the serious harm that the project has already or is expected to cause, including, improper land acquisition processes characterized by failure to provide prompt and adequate compensation, intimidation, harassment, threats and arbitrary arrests of community members, environmental and human rights defenders, as well as journalists critical of the project and inadequate consultation with affected communities.

Other damages include; threats to natural resources relied upon by communities, including the risk of oil spills affecting vital freshwater resources such as Lake Victoria, which supports 40 million people, immense and irreversible harm to local ecosystems and habitats along the pipeline’s route, which passes through numerous protected wildlife areas in Uganda and Tanzania and increased carbon emissions that will tip the world closer to climate catastrophe.

Marsh’s failure to conduct adequate human rights and environmental due diligence before engaging on this project, and its ongoing contributions to its harmful impacts, constitute a breach of the company’s responsibilities under the OECD Guidelines, according to the complaint. The complainants are calling on Marsh to bring its operations back into alignment with the OECD Guidelines by withdrawing from its role as broker for the project and committing to abstain from offering brokerage services for the EACOP project in the future. Given the severity of the claims, the complainants suggest that Marsh should at minimum commit immediately to withhold its services until the complaint is resolved.

“Marsh’s website advertises its commitment to sustainability and ‘building a more resilient world’ but the company is actively contributing to a massive and irresponsible fossil fuel project that will have the opposite effect,” said one of the Ugandan complainants, who has chosen to remain anonymous for security reasons. “The EACOP project isn’t just a shortsighted investment in oil as the world is trying to transition to alternative fuels, it is also diverting resources away from renewable energy projects that Ugandans want and threatening natural resources and existing industries that we rely on.”

About EACOP

The EACOP would be the world’s biggest heated oil pipeline, stretching nearly 900 miles (1,443 kilometers) through the heart of East Africa. The project has already caused large-scale displacement of local communities and poses grave risks to protected environments, water sources and wetlands in both Uganda and Tanzania. Those include the Lake Victoria basin; which millions of people rely upon for drinking water and food production. If completed, it would also enable the extraction and transport of enough oil to generate over 34 million tons of CO2 emissions per year at peak production, exacerbating the ongoing climate emergency.

Since its inception, the project has faced opposition from affected communities along the pipeline route and their advocates, as well as the global #StopEACOP campaign that they built. For more on this, visit www.stopeacop.net.

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Businesses, banks and activists resist EC plans to strip back human rights legislation

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Today the European Commission introduced their ‘Omnibus simplification package’ to amend key laws of the EU Green Deal, including CSDDD, CSRD and Taxonomy. The package proposes significant changes, including the removal of civil liability provisions in the CSDDD and removing 80% of companies from scope in the CSRD.

The earlier announcement from the European Commission as well as the leaked draft to reform recently-agreed EU laws such as the CSDDD has already come under attack from businesses, expertsinvestors and activists alike.

The UN Global Compact and companies including Unilever, Vattenfall and Nestlé have also expressed their concern. Nestlé Europe’s Bart Vandewaetere said that it had “been reporting on [environmental impact and human rights issues in the supply chain] ourselves for years. European regulations mean that more companies have to start doing that. That creates a level playing field and we welcome that.”

Former president of Ireland Mary Robinson added: “Von der Leyen’s new Commission’s attempt to eviscerate these sustainability laws must not be agreed by the European Parliament and by the member states.”

The European Banking Federation warned that weakening the CSRD could create challenges for banks, echoing concerns from more than 160 investors who cautioned that the Omnibus package could harm investment and increase legal uncertainty.

CSOs such as the European Coalition for Corporate Justice (ECCJ)WWF and the Clean Clothes Campaign have also sharply criticised the proposal. The ECCJ writes the proposal is “not simplification, but full-scale deregulation designed to dismantle corporate accountability”.

Workers’ organisations and trade unions from garment-producing countries across Asia, Europe and Latin America also opposed the ‘Omnibus’ this week, highlighting the risk the proposal will “exclude most supply chain workers” including 49 million home workers.

Source: Business & Human Rights Resource Centre

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The CSOs’ Appeal to hear the EACOP case on merit is a crucial development, with the ruling now awaited.

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By Witness Radio team.

The Appellate Division of the East African Court of Justice (EACJ) has heard an appeal filed by four civil society organizations (CSOs) challenging the dismissal of their case against the East African Crude Oil Pipeline (EACOP).

The appeal, filed by four civil society organizations (CSOs), seeks to reconsider the case on its merits after the First Instance Division of the EACJ dismissed it in November 2023 on procedural grounds.

The case was before Justice Nestor Kayobera, Justice Kathurima M’Inoti, Justice Anita Mugeni, Justice Barishaki Bonny Cheborion, and Justice Omar Othman Makungu.

The East African CSOs, Center for Food and Adequate Living Rights (CEFROHT), Africa Institute for Energy Governance (AFIEGO), Natural Justice (NJ), and Centre for Strategic Litigation (CSL), argued that the lawsuit was dismissed unfairly and that the First Instance Court had improperly evaluated the evidence before making its ruling.

According to CSOs, the EACOP project, if implemented, could lead to significant environmental damage, endangering local livelihoods, water supplies, and biodiversity. This includes potential oil spills, disruption of ecosystems, and contamination of water sources. They further assert that TotalEnergies, China National Offshore Oil Corporation (CNOOC), and the governments of Tanzania and Uganda failed to provide a sufficient risk assessment for the project and to adhere to international human rights norms.

The EACOP project is a significant pipeline initiative spanning over 1,400 kilometers, designed to transport crude oil from Uganda’s Lake Albert region to the Tanzanian port of Tanga. The project is a joint venture of TotalEnergies and China National Offshore Oil Corporation (CNOOC) in partnership with the governments of Uganda and Tanzania.

During the appeal hearing in Kigali, Rwanda, the CSOs’ lawyers, known for their expertise, presented robust arguments against the First Instance Court’s dismissal of the case.

Counsel David Kabanda, one of the CSOs’ lawyers, argued that the First Instance Court had overstepped its role by evaluating evidence when considering the preliminary objection raised by the Tanzanian government, which claimed the case was time-barred. He emphasized that determining a preliminary objection should not require examining evidence.

The CSOs’ legal team also emphasized that the case had been filed promptly under the EAC Treaty, a key legal instrument that allows individuals in East African countries to challenge unlawful acts within two months of their enactment or upon gaining knowledge of such acts.

They also urged that the court should have examined other, non-time-barred portions of the case if a portion of it was dismissed on time-barred grounds.

The CSOs also raised the First Instance Court’s ruling to award costs to the Tanzanian and Ugandan governments and the East African Community Secretary General (EAC). They contended that a decision like this may deter future public interest lawsuits, particularly those involving human rights and the environment, as it could set a precedent of penalizing those who advocate for public welfare.

Lawyer Rugemeleza Nshala cautioned that charging in public interest cases, particularly those involving the environment and human rights, could have a “chilling effect” on those seeking justice. “The case that was filed affects the people, and this is why we have all these people in court today,” he said.

After hearing arguments from both sides, including legal representatives for Uganda, Tanzania, and the EAC Secretary General, the appellate judges reserved their ruling, stating that it would be delivered “on notice.”

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As Uganda awaits the Energy Efficiency and Conservation law, plans to develop a five-year plan are underway.

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By Witness Radio Team.

Kampala, Uganda—The Ministry of Energy and Mineral Development (MEMD) is developing a comprehensive five-year Energy Efficiency and Conservation Strategy and Plan for Uganda (EECSP). This plan, which is expected to be completed in June 2025, aims to enhance energy efficiency and conservation efforts in Uganda. Uganda has no law governing the manufacture, distribution, and use of clean cooking technologies.

The plan is expected to be aligned with national priorities, foster partnerships, and secure stakeholder buy-in for effective implementation and long-term sustainability.

In Uganda, over 90% of household energy consumption relies on biomass, a practice that is contributing to massive deforestation. This deforestation threatens our natural habitats, worsens climate change, and increases air pollution. To address these challenges, the government wants to improve energy supply, reduce greenhouse gas emissions, and expand green energy solutions in rural areas, ensuring access to affordable and clean energy.

James Banaabe said that the government, through the Energy Ministry, has hired their firm, Castle Group of Consultants, to develop the strategy. He explained that the goal is to create an actionable plan to enhance energy efficiency across various sectors in Uganda, including industries and buildings.

“We need to develop solutions that help sectors reduce their energy bills while promoting efficiency,” he noted during a consultative meeting attended by key stakeholders, including government agencies, private sector actors, civil society, academia, and end users, which provided active and meaningful insights into the development process.

Funded by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), the plan seeks to set realistic, achievable energy efficiency targets across key sectors such as industry, transport, residential, and commercial, identify key areas for improvement, develop an environmental strategy, and recommend actionable measures to enhance energy efficiency and conservation.

Engineer Simon Kalanzi, Energy Efficiency and Conservation Department Commissioner at MEMD, emphasized the crucial role of continuous stakeholder engagement. “The energy efficiency strategy and plan rely on broad stakeholder engagement to ensure inclusivity, relevance, and effective implementation. Your involvement is key to addressing market barriers, sharing knowledge, and building capacity to incorporate local and international expertise,” he stated further.

The strategy will yield significant benefits over the next decade, including a promising future with steady and responsible energy usage across targeted sectors.

David Birimumaaso, a principal officer at MEMD, highlighted that the strategy would support the implementation of the Energy Efficiency and Conservation bill, which is already before Parliament. “This law mandates everyone to be mindful of energy conservation,” he added.

On February 4, 2024, the State Minister for Energy, Hon. Sidronius Opolot, tabled the Energy Efficiency and Conservation Bill, 2024. The bill seeks to regulate energy consumption, curb waste, and promote sustainable cooking technologies. According to the bill, no regulations currently govern the manufacture, distribution, and use of clean cooking technologies.

 

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