🔗 Share this article UK Administration Cancels Major Financing for Mozambique Gas Initiative Following Environmental and Terrorism Concerns The British government has withdrawn a disputed $1.15 bn loan supporting a giant LNG scheme in the African nation of Mozambique, following growing concerns that the initiative contributes to the climate emergency and terrorist violence in the area. Official Decision and Rationale Business Secretary the Business Secretary announced that the UK would withdraw its export finance for the Mozambique LNG venture, marking five years after the agreement sparked fierce criticism from activists over its impact on human rights, safety, and the planet. “While these choices are never straightforward, the administration believes that UK support of this scheme will not advance the needs of our country,” stated the minister. The decision came to light as the project's developer, French oil major TotalEnergies, is set to revive the troubled initiative, which has been paused since a deadly Islamist insurgency on a nearby town in 2021 caused over 800 of deaths. Background and Growing Risks The loan guarantee was originally sanctioned in 2020. Officials stated they had reviewed the potential problems associated with the venture and found they had grown markedly since that point. Initially, the UK's export credit agency had said the project would create thousands of UK employment opportunities and could be “transformational for Mozambique's economic and societal progress.” However, green organisations have maintained that the east African country should be encouraged to channel resources more heavily in sustainable sources to develop a sustainable green economy. Opposition and Appeals for Wider Withdrawal The project became a lightning rod for violence in the region and was also accused of violating the rights of indigenous people who were relocated when construction activities began. “It has been blatantly clear for years that this scheme is a failure for local communities and for the climate,” said one activist from a sustainable finance organisation. He pressed major international banks supporting the project to withdraw their support, saying they “can no longer turn a blind eye the problems.” Another leading climate advocate said: “This LNG scheme is a enormous source of emissions, connected to significant human rights abuses. It should never have been given UK taxpayer-funded backing in the first place.” The campaigner further called for that the UK should instead support nations like Mozambique by aiding them to adapt to the impacts of the climate change and invest in their abundant renewable sources. TotalEnergies has been approached for comment.