The US has authorized a $4.7 billion loan for a contentious LNG project in Mozambique, raising concerns over environmental impacts and human rights abuses. The funding, expected to support a $20 billion initiative by TotalEnergies, signifies a critical shift away from prior commitments to limit public funding for fossil fuels abroad. Ongoing investigations and opposition from climate advocates further complicate the project’s future.
The United States has approved a substantial loan of $4.7 billion for a liquefied natural gas (LNG) project in Mozambique, which has been criticized for its environmental implications and alleged human rights abuses. This funding, authorized by the US Export-Import Bank (EXIM), aims to support the initiative led by the French energy company TotalEnergies, located in Mozambique’s northern Cabo Delgado region.
The approval of this financial support is integral to advancing one of Africa’s largest energy projects, with a total anticipated cost of $20 billion. The loan represents a departure from potential restrictions on public funding for oil and gas projects abroad. EXIM’s involvement in the Mozambique project began in 2019, but further approval was essential as construction was halted due to security concerns following attacks by militant groups.
TotalEnergies paused construction after terrorist assaults resulted in significant civilian casualties in Cabo Delgado. French authorities have initiated investigations concerning Total’s role in these incidents, with accusations of the company failing to protect its subcontractors, a claim Total has vocally contested. An independent investigation has also raised serious allegations against Mozambican soldiers associated with Total’s operations.
In light of these controversies, TotalEnergies has expressed aspirations to resume construction in 2024, although modifications to this timeline have been made, indicating that operations might not commence until 2029 due to ongoing security challenges. As part of lobbying efforts for US support, Patrick Pouyanné, Total’s CEO, alluded to the revised composition of the EXIM board under the Trump administration as a pivotal factor in securing financial backing.
Environmental advocates have vehemently opposed the LNG project, branding it a “carbon bomb” due to its projected emission of 121 million tonnes of CO2 annually over its lifespan. They argue that the US government should reconsider funding fossil fuel ventures that have significant social and environmental repercussions. Critics assert that the continuation of such investments contradicts commitments made during international climate negotiations.
Allies of the project, including the British and Dutch export credit agencies, are reportedly reevaluating their financial engagement with Total’s LNG venture. The project’s future remains uncertain as governments assess potential legal ramifications associated with withdrawing support. Additionally, the Biden administration’s recent engagement in climate discussions presents further complexity in balancing domestic interests with international commitments against fossil fuel investments.
In conclusion, the approval of a $4.7 billion loan by the United States for the Mozambique LNG project has ignited controversy due to its environmental and human rights implications. Though designed to elevate one of Africa’s major energy initiatives, critics argue that this funding undermines global climate commitments. As financial backers reassess their positions, the project’s future remains uncertain amid escalating scrutiny and opposition from environmental advocates and human rights organizations.
Original Source: www.climatechangenews.com
