British Government Cancels Substantial Funding for Mozambique Gas Project Due to Environmental and Terrorism Concerns
The UK administration has withdrawn a disputed $1.15 bn loan backing a giant liquefied natural gas scheme in Mozambique, after mounting allegations that the initiative contributes to the climate crisis and insurgent unrest in the area.
Official Decision and Rationale
Business Secretary Peter Kyle announced that the UK would withdraw its backing for the Mozambique LNG venture, marking five years after the deal sparked bitter opposition from activists over its effects on human rights, security, and the planet.
“Whilst these decisions are never straightforward, the administration believes that UK support of this scheme will not advance the interests of our nation,” remarked the Business Secretary.
The decision was revealed as the scheme's lead company, French oil major TotalEnergies, prepares to resume the troubled initiative, which has been on hold since a devastating militant attack on a local community in 2021 caused over 800 of deaths.
History and Growing Concerns
The financing deal was originally sanctioned in 2020. The government explained they had reviewed the potential problems linked to the project and determined they had escalated significantly since that point.
At first, the UK's finance body had said the scheme would support over 2,000 of UK jobs and could be “pivotal for Mozambique's economic and social development.”
However, green organisations have long argued that the east African nation should be aided to channel resources more heavily in renewable energy to establish a sustainable low-carbon future.
Opposition and Appeals for Wider Withdrawal
The initiative became a focal point for terror in the region and was also alleged of infringing upon the rights of residents who were relocated when construction activities started.
“It has been obvious for years that this project is a catastrophe for the people and for the environment,” commented one campaigner from a sustainable finance group. He urged leading financial institutions backing the project to withdraw their support, arguing they “can no longer turn a blind eye the problems.”
Another prominent climate campaigner remarked: “This LNG scheme is a huge climate liability, connected to grave violations. It should never have been given UK taxpayer-funded backing in the first place.”
He further advocated that the UK should instead support nations like Mozambique by helping them to adapt to the effects of the climate change and put money in their rich clean energy resources.
The French energy company has been approached for comment.
