US EXIM Bank Loans $4.7 Billion to Mozambique LNG Project Amid Controversies
The US Export-Import Bank is providing a $4.7 billion loan to TotalEnergies for a liquified natural gas project in Mozambique, described as a ‘carbon bomb’. The funding, critical to moving ahead with the long-delayed project, has emerged despite ongoing concerns about human rights violations and environmental impacts. Critics strongly oppose this investment, citing substantial CO2 emissions and associated ethical issues.
The US Export-Import Bank (EXIM) has agreed to provide a loan of US$4.7 billion to TotalEnergies’ liquified natural gas (LNG) project in Mozambique, despite concerns that the project is a significant contributor to carbon emissions. Previously stalled due to local insurgent attacks and security concerns, this funding is pivotal for the project, which requires approximately US$20 billion in total investments. EXIM’s involvement could pave the way for additional financial support.
The project was initially supported in 2019 during the Trump administration, but operations halted following a devastating attack by Islamist groups in Cabo Delgado Province, which left many casualties. Despite a temporary cease due to safety concerns and subsequent financial challenges, TotalEnergies had aimed to resume construction, but has since postponed this to 2029.
TotalEnergies CEO Patrick Pouyanné has sought funding from the Biden administration, yet was unsuccessful until the recent changes in leadership at EXIM led to a renewed approval of the investment. While the Biden administration had pledged to curtail public financing for overseas fossil fuels, it approved significant funding for oil and gas projects abroad during its term.
Despite Biden’s attempts to ban backing for such projects through an OECD agreement, resistance from some countries hindered progress. Annually, OECD nations support fossil fuel projects worldwide with around US$40 billion, creating a substantial climate impact, particularly from TotalEnergies, which could lead to excessive CO2 emissions over its operational lifespan.
Critics, including Kate DeAngelis and Collin Rees from Friends of the Earth and Oil Change International respectively, have deemed the project a misallocation of taxpayer funds and a detrimental influence on climate and human rights. There are also ongoing investigations in France regarding TotalEnergies’ alleged negligence in ensuring the safety of its subcontractors following violent attacks in the region. Despite these allegations, EXIM’s commitment of funds has proceeded without apparent concern for these human rights implications.
In conclusion, the US Export-Import Bank’s recent loan to TotalEnergies for the Mozambique LNG project underscores a controversial commitment to fossil fuel development amidst rising climate concerns. Amidst allegations of human rights violations and significant environmental impact, EXIM’s financial backing may complicate efforts to support sustainable practices and aid in the region. The complexities surrounding the project raise serious questions about the balance between energy investment and environmental responsibility.
Original Source: macaonews.org
