Copublished with CELCOR, Market Forces, Jubilee Australia Research Center, Asian Peoples\u2019 Movement on Debt and Development, JACSES<\/p>\n<\/div>
Port Moresby\/Melbourne\/Tokyo\/Paris\/London. Wednesday 10 December –<\/i> Today, six organisations have submitted the first formal complaint<\/a><\/span> to the Equator Principles<\/a><\/span> detailing urgent concerns about the potential climate, biodiversity and human rights impacts of the proposed Papua LNG project in Papua New Guinea, led by TotalEnergies with co-venturers ExxonMobil, Santos and ENEOS.<\/p>\n<\/div> The complainants – which include organisations in Papua New Guinea, Asia, Australia and Europe – argue that the project does not adhere to the Equator Principles – a financial industry set of risk management standards initiated in 2003. The complaint is addressed to the Equator Principles, which represents 130 public and private financial institutions that have signed the Equator Principles, from 38 different countries.<\/p>\n The complaint focuses on risks from Papua LNG\u2019s extraction and production. Papua LNG will affect at least 12,700 mostly rural, Indigenous peoples in the Gulf Province of Papua New Guinea (1). The project area includes 100 species unknown, or undescribed, by external science and at least 27 threatened terrestrial species. The complaint outlines concerns about the project\u2019s apparent lack of adherence to six out of ten of the Equator Principles, ranging from a lack of verifiable evidence of communities\u2019 Free, Prior and Informed Consent to severe biodiversity risks (see endnote).<\/p>\n<\/div><\/div><\/div> This complaint highlights a host of serious human rights, climate and biodiversity concerns with the Papua LNG project. The people of Papua New Guinea deserve true development which respects Indigenous Peoples\u2019 rights, nature and our precious climate. We are urging the Equator Principles to act.<\/p>\n<\/div> Peter Bosip, Executive Director, Centre for Environmental Law and Community Rights, Papua New Guinea<\/p>\n<\/div><\/div><\/div> Complainants are calling for the Equator Principles to initiate an investigation into these concerns and to alert its signatories of the complaint. The complaint specifically raises concerns about Mitsubishi UFJ Financial Group (MUFG) – the Japanese megabank reported to be acting as financial advisor and seeking to raise finance for the project despite its membership of the Equator Principles – and any other Equator Principle Signatory that may be supporting the project.<\/p>\n<\/div><\/div><\/div> The Papua LNG project is a clear test case for the credibility of the Equator Principles. Thousands of Indigenous Peoples will be impacted by the project\u2019s upstream aspects. Yet, we\u2019ve been unable to find any community information materials that clearly explain the project, its risks or impacts, or their rights under human rights law or international standards. This is shocking. We are extremely concerned about a wide range of potential, irreversible impacts of the project and call for an immediate investigation.<\/p>\n<\/div> Shona Hawkes, Director of Environmental Justice, Jubilee Australia Research Centre<\/p>\n<\/div><\/div><\/div> MUFG\u2019s role as financial advisor to a project rejected by many banks highlights serious failures in its risk management and a clear contradiction with its commitment to achieving net zero emissions. MUFG must take this complaint seriously, conduct a thorough investigation, and withdraw from the Papua LNG project to uphold its environmental and human rights promises.<\/p>\n<\/div> Eri Watanabe, Japan Energy Finance Campaigner, Market Forces<\/p>\n<\/div><\/div><\/div> Almost 1 in 10 Equator Principles banks have ruled out financing Papua LNG, based on their policies or statements made. In 2024, Papua LNG\u2019s previous financial advisor, Cr\u00e9dit Agricole, stated that it would not finance the project following extensive civil society mobilization regarding the project\u2019s climate, biodiversity and human rights impacts. All major PNG, Australian, French and Italian banks have ruled out financing to the project, including the largest bankers of project lead TotalEnergies.<\/p>\n<\/div><\/div><\/div> 15 private or public financial institutions have already ruled out support to the project. TotalEnergies and MUFG are pressing hard on other financial institutions across the globe to get their financial support. Equator Principle signatories must recognize that Papua LNG would be a disaster for the people of Papua New Guinea, its biodiversity and the climate, and a breach of the Equator Principles. They must commit not to support the project.<\/p>\n<\/div> Antoine Bouhey, Defund TotalEnergies Campaign Coordinator, Reclaim Finance<\/p>\n<\/div><\/div><\/div> Over a hundred civil society organizations have joined the Don\u2019t Gas Asia campaign, and communities across the region are calling for a rapid and just transition from fossil fuels directly to renewable energy systems that respect human rights, the environment and energy sovereignty. Papua LNG not only poses risks and harms for communities affected by the extraction but also for the communities affected by the power plants that will burn fossil gas. MUFG has shown willful disregard for the climate and people, and now the people of Asia are demanding that they and other companies commit to stop funding gas now.<\/p>\n<\/div> Lidy Nacpil, Coordinator, Asian Peoples\u2019 Movement on Debt and Development<\/p>\n<\/div><\/div><\/div>