Over 100 advocacy groups have jointly called on banks and financiers in a letter to withdraw their support for TotalEnergies’ $20 billion liquefied natural gas project in Mozambique, citing climate and human rights concerns.
As the French energy giant seeks to resume Africa’s largest foreign investment, stalled since 2021 due to security threats, activists argue that the mega project could exacerbate global warming and contribute to abuses in impoverished Mozambique.
Addressing project funders who entered financing agreements in 2020, the groups assert that they bear direct responsibility for the project’s impacts. This pressure comes amid Dutch legislators demanding safety consultations before approving a $1 billion loan guarantee.
Approximately $15 billion in financing is currently under review to restart construction procedures, according to a credit source. However, inflation and shifts in the gas market have prompted some backers to reevaluate their assumptions.
Exim Bank is reassessing its earlier $5 billion loan guarantee as part of due diligence related to resumed construction plans. Investors find themselves caught between profitability motives and ethical considerations surrounding Total’s Mozambique gas terminal.
With growing awareness of climate issues and heightened scrutiny of development projects, backers face challenging decisions regarding facilitating African energy production, the potential increase in emissions footprints, and the risk of enabling exploitation.