The U.S. has approved a $4.7 billion loan for a Mozambique gas plant operation by TotalEnergies, despite allegations of human rights abuses and environmental concerns. This funding supports a significant energy project amid contradictions in U.S. fossil fuel financing policies. Critics describe the undertaking as a “carbon bomb,” raising alarms about the project’s sustainability and human impact.
The United States has sanctioned a $4.7 billion loan for a liquefied natural gas plant in Mozambique, labeled as a “carbon bomb” and criticized for alleged human rights violations. The financial support, provided by the US Export-Import Bank (EXIM) for the project operated by TotalEnergies in Cabo Delgado, is anticipated to help secure funding for one of Africa’s largest energy initiatives, projected to total $20 billion.
This investment represents a shift from potential restrictions on public financing for oil and gas projects abroad, a consensus among affluent nations that nearly materialized at the end of last year. Although EXIM first committed to the Mozambique project in 2019 during the Trump administration, renewed approval was necessary after a construction pause initiated by TotalEnergies due to security issues.
Following an attack by the Al-Shabaab militant group, which resulted in numerous civilian casualties, Total halted the construction. The French authorities have since launched an investigation into possible involuntary manslaughter against Total, claiming the company’s failure to secure safety measures contributed to this tragedy. TotalEnergies has denied these accusations, stating their lack of awareness regarding reported civilian abuses by Mozambican soldiers.
Anticipating a construction restart by 2024, TotalEnergies has now revised expectations, suggesting operations may not commence before 2029 due to ongoing security and financial uncertainties. Concurrently, the CEO of TotalEnergies, Patrick Pouyanné, has engaged in discussions to garner support from the Biden administration for the project. He noted that a functioning US EXIM could influence governmental backing and hinted that American firms received the majority of contracts related to the venture.
Environmental activists condemn the gas project as a “climate bomb,” forecasting annual emissions of up to 121 million tonnes of CO2 equivalent. Collin Rees from Oil Change International asserted that taxpayers’ funds are being misallocated to a project linked to substantial human rights abuses, particularly while essential public services in the US suffer cuts.
Critics, including Kate DeAngelis from Friends of the Earth, characterized this decision as an egregious misuse of taxpayer money. Concurrently, UK and Dutch export credit agencies, which previously supported surrounding financing before construction was paused, are now reassessing their involvement in the project amidst concerns regarding its environmental and humanitarian implications.
Despite the Biden administration’s previous commitment to equip the US for sustainable energy practices, the recent loan approval signifies a continuation of support for fossil fuel initiatives abroad. Efforts to halt public financing for international fossil projects have faced substantial resistance, complicating international agreements designed to limit fossil fuel investments.
The approval of a $4.7 billion loan for TotalEnergies’ Mozambique gas plant highlights ongoing contradictions in US foreign energy policy, particularly amidst a global push for sustainable development. The financial backing raises significant concerns regarding environmental impacts and human rights abuses, prompting criticism from various advocacy groups. As funding commitments remain under scrutiny, the implications of this investment on local communities and global climate objectives continue to warrant attention.
Original Source: www.climatechangenews.com
