🔗 Share this article UK Government Withdraws Significant Loan for Mozambique LNG Project Due to Environmental and Security Fears The UK government has pulled a disputed $1.15 bn loan backing a giant LNG project in Mozambique, citing mounting allegations that the initiative contributes to the climate crisis and militant attacks in the region. Government Announcement and Reasoning Business Secretary Peter Kyle stated that the UK would end its financial support for the gas venture, marking five years after the agreement ignited bitter backlash from campaigners over its effects on local communities, security, and the planet. “Although these choices are never simple, the government considers that UK support of this scheme will not advance the interests of our nation,” said the Business Secretary. The decision was revealed as the scheme's developer, France-based oil major TotalEnergies, is set to revive the problem-plagued initiative, which has been paused since a violent Islamist insurgency on a nearby community in 2021 resulted in hundreds of fatalities. History and Escalating Risks The financing deal was first agreed in 2020. Authorities stated they had reviewed the potential problems associated with the venture and concluded they had increased markedly since that time. Initially, the UK's export credit agency had argued the scheme would create thousands of UK jobs and could be “transformational for Mozambique's economic and social development.” However, green campaigns have maintained that the east African nation should be aided to invest more aggressively in clean power to develop a viable green economy. Criticism and Calls for Wider Withdrawal The initiative served as a source for insurgency in the region and was also alleged of violating the rights of local communities who were relocated when construction work began. “It has been evident for years that this project is a disaster for local communities and for the climate,” stated one advocate from a ethical investment group. He pressed major financial institutions funding the venture to pull their backing, arguing they “can no longer overlook the issues.” Another prominent climate advocate remarked: “This LNG scheme is a massive carbon timebomb, tied to significant violations. It should never have been given UK taxpayer-funded backing in the first place.” They further called for that the UK should instead help nations like Mozambique by aiding them to adapt to the impacts of the climate change and put money in their plentiful clean energy potential. The French energy company has been contacted for comment.