Page 6 - DMEA Week 11 2022
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DMEA FINANCE & INVESTMENT DMEA
UK court split on export credit
to finance Mozambique LNG
AFRICA A legal challenge by an international environ- international ambitions to limit global tempera-
mental protection group to block Britain from ture rise to 1.5 degrees. Its approval was therefore
financing a mega gas project in Mozambique has unlawful.
yielded a split decision. TotalEnergies operates the $20bn project
Friends of the Earth (FoE) brought a High that targets production of 16 trillion cubic feet
Court challenge to a 2020 decision by export of gas over 30 years from a site off Mozambique’s
credit agency UK Export Finance (UKEF) to Indian Ocean coast. However, the partnership
provide $1.15bn to a consortium led by French suspended work in April 2021 due to an Islamist
supermajor TotalEnergies to develop a liq- insurgency near the onshore liquefaction site.
uefied natural gas (LNG) project in northern FoE argues that the development will pro-
Mozambique. duce between 3.3bn and 4.5bn tonnes of carbon
The campaigners argued that the financing dioxide equivalent over its lifecycle, more than
was unlawful and contradicted Britain’s com- the combined annual greenhouse gas emissions
mitment to cut greenhouse emissions. How- of all 27 European Union countries.
ever, the two judges hearing the challenge did FoE head of legal, Will Rundle, says the pres-
not fully find with FoE, but they did rule that sure group will appeal.
they could escalate the matter to the UK Court “Our claim that the government’s export
of Appeal, London-based Energy Voice reported credit agency acted unlawfully has today been
on Wednesday (March 16). vindicated by a High Court judge, but UK
One of the magistrates, Lord Justice Stu- Export Finance has been let off the hook on a
art-Smith, said the decision “would have no technicality, for now,” he said.
material impact on the emissions generated by “Our fight for climate justice means that an
the project, which was and is going to be devel- appeal is now inevitable, and we remain confi-
oped in any event”, The National (UAE) reported dent of success in light of the compelling findings
on the same day. clearly laid out by Justice Thornton.”
The other judge, Justice Thornton, agreed Responding to the court decision, a UK
with FoE saying the UKEF’s decision to fund the government representative is quoted by The
LNG project was granted without a complete National as saying: “We welcome the judgment
understanding of its climate impacts, FoE said. and remain confident that UK Export Finance
He further said that there was “no rational basis” follows robust and internationally recognised
to show that the financing of the project was con- due diligence before providing any support for
sistent with the terms of the Paris Agreement and overseas projects.”
P6 www. NEWSBASE .com Week 11 17•March•2022
