🔗 Share this article UK Administration Pulls Major Loan for Mozambique Gas Scheme Due to Environmental and Security Worries The British administration has withdrawn a controversial $1.15 bn loan backing a giant LNG project in Mozambique, citing growing concerns that the venture exacerbates the global warming and militant unrest in the region. Government Decision and Reasoning Business Secretary the Business Secretary stated that the UK would end its backing for the gas venture, coming five years after the deal ignited strong backlash from campaigners over its effects on local communities, security, and the planet. “While these decisions are never easy, the administration believes that UK funding of this project will not advance the needs of our country,” stated Kyle. The decision came to light as the scheme's developer, France-based oil giant TotalEnergies, plans to resume the troubled initiative, which has been suspended since a devastating Islamist insurgency on a nearby community in 2021 led to hundreds of casualties. History and Growing Risks The financing deal was initially approved in 2020. Authorities explained they had reviewed the dangers linked to the venture and found they had escalated significantly since that period. At first, the UK's export credit agency had argued the scheme would create over 2,000 of UK jobs and could be “transformational for Mozambique's financial and social progress.” However, environmental organisations have maintained that the African country should be encouraged to channel resources more heavily in sustainable sources to develop a viable green economy. Criticism and Calls for Broader Action The initiative served as a focal point for insurgency in the region and was also accused of infringing upon the human rights of local communities who were displaced when construction activities began. “It has been evident for years that this project is a failure for the people and for the environment,” said one activist from a ethical investment organisation. The campaigner pressed leading financial institutions supporting the project to pull their involvement, arguing they “can no longer turn a blind eye the concerns.” Another prominent environmental advocate added: “This LNG scheme is a massive climate liability, tied to serious violations. It should never have been given UK public support in the first place.” The campaigner further advocated that the UK should instead help countries like Mozambique by aiding them to adapt to the effects of the climate change and put money in their plentiful clean energy potential. TotalEnergies has been approached for comment.