Court of Appeal to hear legal challenge against UK funding for Mozambique gas mega-project

A legal challenge will be heard at the Court of Appeal today over the UK government’s decision to approve $1.15 billion of financing for a gas mega-project in Mozambique.

It comes after the judicial review, brought by Friends of the Earth, ended up in legal deadlock last December, when two High Court judges disagreed on the verdict and a split decision meant the case was dismissed so it could be heard again in the Court of Appeal.

The Court of Appeal judges will now examine the government’s decision to fund the Mozambique liquified natural gas (LNG) project through its export credit agency, UK Export Finance (UKEF).

Friends of the Earth will argue that financing for the project was permitted after it was incorrectly judged to be compatible with the Paris Agreement and its goal to limit global warming to 1.5 degrees.

The total emissions for the new gas field, which research by the environmental group finds would total some 4.5bn tonnes of greenhouse gases over its lifetime – more than the combined annual emissions of all 27 EU countries, were not calculated as part of the government’s approval process or evaluated against global climate goals.

This, alongside a clear contradiction of the UK’s obligation to help other countries meet their own targets to cut emissions, is why Friends of the Earth believes the decision to be unlawful.

Friends of the Earth’s head of legal, Will Rundle, said:

“UKEF not only helped finance the project but it failed to measure all the emissions it would produce – misleading ministers about the scale of its impact. This is a complete failure of credible governance and morally unacceptable in a climate crisis.

“Climate assessments for fossil fuel projects must measure all the emissions, period. We need to understand the climate impacts of spending taxpayers’ money, so we can decline carbon intensive investments like this and fund renewable energy projects instead.”

The hearing in the Court of Appeal, comes after COP27, where little progress was made in phasing out coal, oil, and gas, and securing the action needed to avert catastrophic global warming.

The gas project is project is already impacting communities in Cabo Delgado. People who once made a living from farming and fishing have lost their land and livelihoods. More than a million people have been forced to flee the area where gas was discovered in the last five years, due to conflict and insecurity.

Daniel Ribeiro, campaigner at Justice Ambiental (Friends of the Earth Mozambique), said:

“This appeal is a chance for the UK to show that it can uphold climate justice rather than just paying it lip service.

“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.”

Friends of the Earth’s international climate campaigner, Rachel Kennerley, said:

“Gas has never been a sustainable energy model and has wreaked havoc on many developing countries.

“A renewable development pathway is not only desired but possible, the UK must withdraw its support from Mozambique LNG.

“The repercussions of the project will be global and it’s communities like those in Cabo Delgado that are unfairly paying the highest price for climate breakdown.”

The appeal decision is expected by early 2023.