The UK government has withdrawn a controversial £870m ($1.15bn) package of export finance for a major gas project in Mozambique, citing climate, security and human rights risks. Business Secretary Peter Kyle confirmed that UK Export Finance (Ukef) ended its participation after a comprehensive assessment, stating the decision would not advance the country's interests.
The Mozambique liquefied natural gas (LNG) project, led by French oil company TotalEnergies, has been on hold since 2021 when an Islamist insurgency attacked a nearby town, killing over 800 people. The project also faced accusations of violating human rights through forced relocations and of fuelling the climate crisis.
The support package was first agreed in 2020, despite opposition from campaigners and MPs who argued it undermined UK climate commitments. Kyle noted that risks had increased since 2020, leading to the withdrawal. Ukef had previously claimed the project would support over 2,000 UK jobs and be transformative for Mozambique.
Green groups and campaigners welcomed the decision. Antoine Bouhey of Reclaim Finance said the project was “riddled with problems,” while Asad Rehman of Friends of the Earth called it a “carbon timebomb” linked to human rights abuses. They urged other countries and banks to withdraw support and instead invest in Mozambique’s renewable energy potential.
