Significant risks to SMBC from East African Crude Oil Pipeline (EACOP) project

The document argues that SMBC's reported role in the EACOP project exposes the group to reputational, financial, and legal liabilities, while contradicting its own environmental and human rights commitments.

• SMBC is reported to be acting as a financial advisor to TotalEnergies and is jointly arranging between $2 billion and $3 billion in debt financing for the EACOP project, which may cover up to 60% of total project costs.
• The EACOP project, a proposed 1,443 km pipeline from Hoima, Uganda, to Tanga, Tanzania, presents severe ESG risks, including the displacement of people without adequate compensation, the intimidation of human rights defenders, and threats to Ramsar-designated wetlands and the Lake Victoria basin.
• The project is estimated to contribute significantly to climate change, with full value chain emissions projected at 378 million tons of CO2 over its 25-year operational life, which the authors compare to the emissions of nearly nine coal-fired power plants.
• SMBC's support for EACOP may constitute greenwashing as it contradicts the Group's public commitments to achieve net-zero financed emissions and its pledge not to support projects with significant negative impacts on Ramsar Convention wetlands.
• The project faces substantial legal risks, including pending lawsuits in France, Uganda, and the East African Court of Justice, which could lead to project delays, cancellation, and the creation of stranded assets.
• The authors assert that SMBC Group Board members may be in breach of their fiduciary duties under Japanese law if they fail to properly manage climate-related risks or provide accurate disclosures regarding the project.

APA

Center for International Environmental Law (2022). Significant risks to SMBC from East African Crude Oil Pipeline (EACOP) project. https://www.ciel.org/wp-content/uploads/2022/06/Letter-to-SMBC-Group-Directors-re_-EACOP_24June2022.pdf

Chicago

Center for International Environmental Law. Significant risks to SMBC from East African Crude Oil Pipeline (EACOP) project. 2022. https://www.ciel.org/wp-content/uploads/2022/06/Letter-to-SMBC-Group-Directors-re_-EACOP_24June2022.pdf.

Wikipedia

{{cite press release |author=Center for International Environmental Law |title=Significant risks to SMBC from East African Crude Oil Pipeline (EACOP) project |date=24 June 2022 |url=https://www.ciel.org/wp-content/uploads/2022/06/Letter-to-SMBC-Group-Directors-re_-EACOP_24June2022.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{centerforinternationalenvironmentallaw2022significant, author = {{Center for International Environmental Law}}, title = {{Significant risks to SMBC from East African Crude Oil Pipeline (EACOP) project}}, publisher = {Center for International Environmental Law}, year = {2022}, month = jun, url = {https://www.ciel.org/wp-content/uploads/2022/06/Letter-to-SMBC-Group-Directors-re_-EACOP_24June2022.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }