The Court of Appeal has approved UK Export Finance’s (UKEF) support for Mozambique LNG. The finding rejects Friends of the Earth’s (FoE) bid to declare it unlawful.
FoE has said it will consider next steps, which may include an appeal.
The Court of Appeal said the Paris Agreement was “only one of a range of factors” that should be considered.
UKEF welcomed the court’s ruling. “The three judges were unanimous in their view that UKEF acted lawfully in deciding to support the Liquified Natural Gas project in Mozambique,” a representative said.
“The UK is committed to helping countries across the globe move away from their dependence on fossil fuels and accelerate to net zero. UKEF is fully aligned with this commitment, pledging to support more green exports and decarbonise its portfolio by 2050. UKEF has provided over £7 billion of support for green and sustainable projects since 2019.”
The group’s international climate campaigner, Rachel Kennerley, said the judgment was “extremely disappointing”. However, she said, it “doesn’t alter our firm belief that the UK government should not be supporting the Mozambique gas project, or any fossil fuel project at home or abroad”.
UKEF agreed to provide the funds in June 2020, with FoE bringing its legal challenge in September that year.
The High Court heard the case in December 2021. Two judges sat on the case, with one backing the UK’s support and one coming out against it. The High Court ruling allowed UKEF support to continue, but also allowed FoE to take its case to the Court of Appeal.
Justice Ambiental campaigner Daniel Ribeiro said the ruling today was “bad news for the people of Mozambique impacted by this project and everyone globally suffering climate impacts”.
“It’s time to end the UK government’s bankrolling of destructive, colonial fossil fuel extractivism overseas and perpetuating decades of human rights and environmental abuses in countries on the frontlines of the climate crisis.”
The UK set out its policy in March 2021, under which the government would no longer provide UKEF or official development assistance to fossil fuel projects.
Counting the impact
FoE has said the Mozambique LNG project may produce 4.5 billion tonnes of greenhouse gases. It complained the UK government had failed to evaluate or calculate these.
UKEF, while it was assessing the project, gave a “rough estimate” of 805.75 million tonnes.
Justice Thornton, who found against UKEF at the High Court, said the agency had failed to discharge its duty in tracking scope 3 emissions. She wrote there was “no rational basis” to show that the Mozambique LNG project was consistent with the Paris Agreement.
TotalEnergies operates the Mozambique LNG project. The company declared force majeure in April 2021 and it remains on hold. An attack by an Islamist insurgency in northern Mozambique triggered the force majeure. There have been few signs of improvement in the security situation.
Updated at 2:59 pm with additional details from the Court of Appeal ruling.
Updated at 4:16 pm with comments from UKEF.
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