The legal threat to the UK-Mozambique $20 billion deal has been annulled

The court found this project legal after the environmental organization, The Friends of the Earth appealed to the court to sanction the project for violating environmental regulations.

However, the court ruled that the project was in line with the Paris Agreement on climate change, and gave permission to proceed. A decision environmental organizations described as “very disappointing.”

Rachel Kennerley, one of the Friends of the Earth climate campaigners stated, “This disappointing verdict does not change our firm belief that the UK government should not support the Mozambique gas project, or fossil fuel projects at home or abroad.”

This whole debacle comes from the fact that UK Export Finance (UKEF) has promised to provide direct loans and guarantees to banks to support the design, construction and operation of the $20 billion project.

A UKEF spokesman said after the court’s decision that the company would consider environmental best practice before funding any project.

“We remain confident that UK Export Finance follows strong and internationally recognized due diligence before providing support to overseas projects,” the spokesman said.

The spokesperson of TotalEnergies also agreed with the decision, noting that the project offers a great economic opportunity for the people of Mozambique, while also stating that TotalEnergies is also a company that considers its carbon footprint and is dedicated to the goal of reducing greenhouse gas emissions. .

“It will bring various social and economic benefits to Mozambique and is an important part of Mozambique’s goal of economic diversification,” the spokesman said.

“TotalEnergies supports the objectives of the Paris Agreement 2015, which calls for the reduction of greenhouse gas emissions in the context of sustainable development and the fight against poverty,” the spokesman added.

Last year, TotalEnergies was in the same legal boat, as it was also taken to court for violating the 2015 Paris Agreement in its oil deal with Uganda, a case that is still ongoing.

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