U.K. and Dutch export credit agencies have withdrawn their financial commitments for French oil and gas giant TotalEnergies’ gas project in Mozambique, in an unprecedented move that marks the latest setback for the controversial project. UK Export Finance (UKEF), a government agency, and Netherlands-based Atradius, both of which provide companies with loans, guarantees and insurance for overseas projects, had previously committed a combined $2.2 billion to TotalEnergies’ liquefied natural gas (LNG) project in northern Mozambique. The project has been linked to environmental destruction and human rights violations, and was recently sued in France for alleged links to a massacre near the LNG site. “It’s a historic decision by the U.K. government that must be commended, because it has not been seen before that an export credit agency pulls out of a project it had previously agreed to support,” said Antoine Bouhey, campaign coordinator at Reclaim Finance, a France-based organization advocating for financial alignment with social and climate justice. “The project is riddled with problems related to climate change, of course, as well as extremely grave allegations of human rights violations,” Bouhey told Mongabay by phone. He added he hopes the agencies’ withdrawal will encourage other financiers to reconsider their involvement. “What we are telling all 29 financiers still involved in the deal who may think they cannot withdraw is that [UKEF and Atradius show] there is a possibility to pull out,” Bouhey said. “They should do the only responsible thing, which is to end their commitment to this project.” Amid…This article was originally published on Mongabay

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