UK pulls funding for controversial Mozambique gas project

Business secretary Peter Kyle has announced that the UK government has overturned the decision by Boris Johnson’s government in 2020 to provide $1.15bn in support for the liquified natural gas scheme through UK Export Finance (UKEF) – the UK’s official export credit agency.  

The project’s climate footprint would be enormous. Estimates suggest gas from the field could generate around 4.5bn tonnes of greenhouse gas emissions over its lifetime – more than the combined annual emissions of all 27 EU countries. The project has also been mired in controversy with allegations of human rights abuses – only last week the promoters TotalEnergies were accused of complicity in war crimes.  

Friends of the Earth has supported its sister organisation JA! (Friends of the Earth Mozambique) by campaigning for years against UK support for the project – including an unsuccessful legal challenge. In October last year the organisation’s lawyers wrote to the government and UKEF chief executive, Tim Reid, warning that recent developments in climate litigation – including the landmark ‘Finch’ ruling – means that the previous climate assessment can no longer be lawfully relied on [2].  

The UK government’s decision does not signal an end to the project, but other countries may well now reconsider their support [3]. 

Welcoming the government’s decision to end funding for the project, Asad Rehman, chief executive of Friends of the Earth, said:  

“The UK government is absolutely right to withdraw support for this deeply damaging and controversial development – and deserves credit for doing so.  

“This Mozambique gas project is a huge carbon timebomb, linked to serious human rights abuses. It should never have been given UK taxpayer-funded support in the first place. 

“We now urge other countries to follow suit and end their backing for this destructive project.

“The UK should instead support countries like Mozambique - which are on the frontline of the climate crisis - by helping them adapt to its impacts and invest in their abundant clean energy resources to bring affordable energy to the 60% of the country locked into energy poverty.”

Ends

Editor's notes:

1. The project is being developed by French company TotalEnergies. UK Export Finance had agreed to provide support of around $1.15bn in direct loans and guarantees to banks and British companies involved in the project.

2. Drop funding for massacre-linked gas project or face legal trouble, UK warned | Politico: https://www.politico.eu/article/uk-government-drop-project-support-gas-mozambique-totalenergies/

3. The Netherlands government has still to decide whether to fund the project. Friends of the Earth is hoping that at number of other countries that have agreed to support it – including Italy, Japan, USA and South Africa – will reconsider.