The US has approved a $4.7 billion loan for TotalEnergies’ Mozambique gas project, which faces severe allegations of human rights abuses and environmental concerns. This decision marks a significant financial commitment to one of Africa’s largest energy projects, despite previous calls to end public finance for fossil fuels. Climate advocates sharply critique this move, highlighting its potential adverse impacts.
The United States has granted a $4.7 billion loan for a fossil gas plant in Mozambique, which has been labeled a “carbon bomb” and is currently facing allegations of human rights abuses. This financial support from the US Export-Import Bank (EXIM) is associated with a liquefied natural gas (LNG) project led by TotalEnergies in the Cabo Delgado region, marking a significant step toward enabling one of Africa’s largest energy projects with an anticipated cost of $20 billion.
Previously, EXIM had agreed to fund the Mozambique project in 2019. However, due to TotalEnergies triggering a “force majeure” in 2021 after an attack by the Al-Shabaab militant group, fresh approval was necessitated. Following this assault, there have been significant civilian casualties, with reports of up to 1,200 individuals missing or deceased.
TotalEnergies is currently under investigation by French authorities for potential involuntary manslaughter, linked to its alleged failure to secure the safety of its subcontractors amidst the attack. Additionally, reports have emerged alleging abusive actions by Mozambican soldiers affiliated with Total’s operations, an allegation the company has denied.
Despite intentions to resume construction by 2024, TotalEnergies has acknowledged that operations would not start until at least 2029 due to ongoing security concerns and uncertainties surrounding funding. In efforts to secure US governmental support, CEO Patrick Pouyanné undertook a lobbying campaign, which ultimately fell short.
Climate advocates have condemned the Mozambique LNG project, citing it as a detrimental force exacerbating climate change. This endeavor could result in annual emissions of up to 121 million tonnes of CO2 equivalent over its lifespan of nearly forty years, prompting critiques from environmental groups such as Friends of the Earth.
Critics argue that this funding, coming after significant cuts to US international aid programs under the Trump administration, compromises public welfare while supporting a fossil fuel initiative that has serious human rights implications. Observers are now calling for a reassessment of support from Britain and the Netherlands, as both countries’ export credit agencies evaluate their commitments in light of the project’s controversies as well as its broader environmental impact.
In summary, the recent approval of a $4.7 billion loan for a Mozambique gas plant by the US Export-Import Bank, amidst serious allegations of human rights abuses and significant environmental concerns, highlights the complexities of international energy financing. While this project represents a pivotal development in Africa’s energy landscape, it simultaneously raises critical ethical questions regarding the implications of investing in fossil fuel infrastructure. The growing outcry from climate advocates underscores the need for accountability in energy projects that may exacerbate global warming and jeopardize human rights.
Original Source: www.climatechangenews.com
