🔗 Share this article British Government Cancels Major Funding for Mozambican Gas Scheme Due to Environmental and Security Concerns The British government has canceled a contentious $1.15 bn loan for a giant LNG project in Mozambique, after growing concerns that the initiative fuels the climate crisis and militant attacks in the area. Official Decision and Reasoning Business Secretary Peter Kyle stated that the UK would terminate its backing for the gas project, marking five years after the deal sparked strong criticism from campaigners over its effects on local communities, security, and the environment. “While these decisions are never straightforward, the government considers that UK financing of this scheme will not serve the interests of our nation,” remarked Kyle. The move was revealed as the scheme's lead company, French energy major TotalEnergies, is set to restart the problem-plagued operation, which has been on hold since a devastating Islamist insurgency on a local community in 2021 caused over 800 of fatalities. Background and Growing Concerns The support package was first agreed in 2020. Officials said they had evaluated the potential problems linked to the venture and found they had grown markedly since that point. At first, the UK's finance body had argued the project would support over 2,000 of UK employment opportunities and could be “game-changing for Mozambique's economic and social progress.” However, green groups have consistently contended that the African country should be supported to invest more heavily in renewable energy to establish a sustainable green economy. Opposition and Appeals for Wider Withdrawal The project became a lightning rod for violence in the region and was also accused of infringing upon the human rights of indigenous people who were displaced when development activities began. “It has been obvious for years that this scheme is a failure for the people and for the climate,” commented one advocate from a ethical investment organisation. He pressed leading international banks backing the project to withdraw their backing, saying they “can no longer turn a blind eye the concerns.” Another leading environmental advocate added: “This LNG scheme is a massive source of emissions, linked to grave violations. It should never have been given UK taxpayer-funded support in the first place.” They further advocated that the UK should instead assist nations like Mozambique by aiding them to adapt to the impacts of the climate change and put money in their abundant clean energy potential. TotalEnergies has been approached for a statement.