Campaigners have called on the UK government to withdraw its financing for a major fossil fuel project in Mozambique, warning of potential legal action if the funding continues. The project, led by TotalEnergies, involves the development of a liquefied natural gas (LNG) facility in the Cabo Delgado province. The UK government has committed up to $1.15 billion through UK Export Finance (UKEF) to support the project.
Environmental groups argue that the project contradicts the UK’s climate commitments, particularly the pledge to end support for overseas fossil fuel projects. They contend that the financing violates the Paris Agreement’s goal to limit global warming to 1.5 degrees Celsius. The project is expected to result in significant greenhouse gas emissions, raising concerns about its environmental impact.
The UK government’s decision to fund the project has faced legal challenges. In 2022, the High Court ruled that UKEF had failed to properly assess the project’s climate impact, rendering the funding decision unlawful. However, the Court of Appeal later overturned this ruling, stating that it was for ministers, not judges, to decide whether such projects align with climate goals. Environmental groups have expressed disappointment with the Court of Appeal’s decision and are considering further legal action.
The controversy highlights the tension between economic development and environmental responsibility. Proponents of the project argue that it will boost Mozambique’s economy and provide much-needed energy infrastructure. However, critics maintain that the long-term environmental costs outweigh the short-term economic benefits.
As the situation develops, the UK government faces increasing pressure to reconsider its involvement in the project. Campaigners continue to advocate for a shift towards renewable energy investments and greater accountability for the environmental impact of overseas projects. The outcome of any future legal proceedings could have significant implications for the UK’s approach to financing international energy projects and its commitment to global climate goals.
