The UK government has announced its withdrawal from a $1.15 billion (£870 million) support package for a massive gas project in Mozambique, citing concerns over climate change and terror attacks in the region.
In a move that comes as the project's developer, TotalEnergies, prepares to restart production, the business secretary Peter Kyle said the UK Export Finance (Ukef) had taken the decision after conducting a "comprehensive assessment" of the project. The UK government believes that financing the project will not serve British interests.
The Mozambique support package was agreed upon in 2020 amid criticism from environmental groups and lawmakers who called for an end to funding polluting projects overseas, citing its inconsistency with the UK's climate commitments.
Campaigners have long accused the project of fueling human rights abuses, security risks, and environmental degradation. Islamist insurgents attacked a nearby town in 2021, killing over 800 people. The attack led to concerns about the project's safety and social impact.
Asad Rehman, chief executive of Friends of the Earth, welcomed the decision, saying it highlighted the "huge carbon timebomb" posed by the project. He urged other countries to follow suit in ending their backing for the destructive project and instead supporting countries like Mozambique that are vulnerable to climate change.
Meanwhile, Antoine Bouhey from Reclaim Finance called on leading international banks to withdraw their support for the project, citing its numerous problems and human rights abuses. "They can no longer turn a blind eye to the issues and must immediately withdraw their support," he said.
In a move that comes as the project's developer, TotalEnergies, prepares to restart production, the business secretary Peter Kyle said the UK Export Finance (Ukef) had taken the decision after conducting a "comprehensive assessment" of the project. The UK government believes that financing the project will not serve British interests.
The Mozambique support package was agreed upon in 2020 amid criticism from environmental groups and lawmakers who called for an end to funding polluting projects overseas, citing its inconsistency with the UK's climate commitments.
Campaigners have long accused the project of fueling human rights abuses, security risks, and environmental degradation. Islamist insurgents attacked a nearby town in 2021, killing over 800 people. The attack led to concerns about the project's safety and social impact.
Asad Rehman, chief executive of Friends of the Earth, welcomed the decision, saying it highlighted the "huge carbon timebomb" posed by the project. He urged other countries to follow suit in ending their backing for the destructive project and instead supporting countries like Mozambique that are vulnerable to climate change.
Meanwhile, Antoine Bouhey from Reclaim Finance called on leading international banks to withdraw their support for the project, citing its numerous problems and human rights abuses. "They can no longer turn a blind eye to the issues and must immediately withdraw their support," he said.