Climat-ÉnergieFinance
Communiqué de presse14 mars 2025

Trump-Appointed US EXIM Board Approves Controversial $4.7 Billion Loan for Mozambique LNG Project Amid Human Rights and Climate Concerns

The newly appointed board of the Export-Import Bank of the United States (US EXIM), selected by the Trump administration, has approved a $4.7 billion loan to the Mozambique LNG fossil gas project, developed by French major TotalEnergies.

International NGOs call on the other European and Asian financiers of Mozambique LNG to refuse to follow this toxic and irresponsible lead and to oppose the restart of the project, a climate bomb associated with numerous allegations of human rights violations.

This decision 1 comes despite the project being under force majeure since April 2021, following a large-scale insurgent attack that devastated the town of Palma, close to TotalEnergies’ Afungi gas site 2. Numerous reports by civil society and media have pointed to allegations of serious human rights violations reported to have been perpetrated by the Mozambican security forces deployed for the protection of the project and supported by TotalEnergies, and despite TotalEnergies knowledge that such violence against civilians was happening 3. Hundreds of families from communities affected by the project remain uncertain about their ability to use their lands, start new fields, or receive compensation, and have been protesting at the company gates – only yesterday, members of the Quitunda resettlement village interrupted a meeting coordinated by representatives of TotalEnergies. This project would furthermore be taking place in a country with weakening democratic processes and shrinking civic space, in which ongoing waves of post electoral protest have been met with state violence 4.

TotalEnergies, which has aggressively lobbied the US government for months, had previously failed to secure approval from the Biden administration to release the massive funding granted during Trump’s first term in 2020 for its Mozambican operations 5. With today’s decision from US EXIM, two governments have now given Mozambique LNG a green light – the United States government of Donald Trump and the Italian government of Giorgia Meloni 6 – putting the stamp of the far right on this support and on TotalEnergies’ project.

All the public and private financial institutions of the 2020 $14.9 billion project financing to Mozambique LNG have been asked to approve a restart of the project and a release of their loans and loan guarantees, after a four-year suspension. US EXIM’s decision stands in stark contrast to recent moves in the Netherlands and the UK. On March 4th, the Dutch government announced an independent inquiry into alleged human rights abuses committed by Mozambican security forces in connection with the Mozambique LNG project 7. Meanwhile, UK Export Finance (UKEF) has sought legal advice regarding its contractual obligations to further support the project, signaling growing concerns among international financiers 8. Several financial institutions have refused to take a clear stand, including French banks Crédit Agricole and Société Générale.

International NGOs call on the other financiers of Mozambique LNG – and in particular European and Asian banks and governments – to refuse to follow Trump and Meloni’s lead and to oppose the restart of this highly controversial project. They are urging financial institutions to support the call for an independent international investigation – led by a UN body – into an alleged massacre of civilians, reportedly committed near TotalEnergies’ Afungi premises between July and September 2021 by public security forces claiming to be in charge of protecting the gas site 9.

For Daniel Ribeiro, Technical Coordinator with Justiça Ambiental! / Friends of the Earth Mozambique: 

“The human rights violations, armed conflict, environmental impacts and risky economic projections of the Mozambique LNG project should have kept most sensible investors away. The decision of the US EXIM bank to approve $4.7 billion for a French company to operate in Mozambique does not make sense. Especially since Trump threw a tantrum and recently cancelled a few million dollars of aid to Mozambique’s health sector. This exposes the real focus of his administration – to take funds and resources away from people and transfer them to rich transnational corporations.” 

For Lorette Philippot, Private Finance Campaigner with Friends of the Earth France: 

“The message is clear: Total can count on far-right governments, whether in Italy or the USA, to support its Mozambique LNG project, in the midst of climate chaos and terrible allegations of atrocities committed against civilians. French banks Crédit Agricole and Société Générale, which are constantly redoubling their efforts to show an environmentally and socially responsible face, can no longer hide in complicit silence. They must refuse to follow Trump and Meloni’s lead, and oppose a restart of Mozambique LNG.”

For Kate DeAngelis, Economic Policy Deputy Director for Friends of the Earth US: 

As the Trump administration is eliminating foreign aid that saves lives and provides disaster relief, it is giving an almost $5 billion handout from US taxpayers to the fossil fuel industry. This is the pinnacle of government waste and an abuse of taxpayer dollars. As DOGE is taking a chainsaw to almost all of the federal government that provides necessary services, it has demonstrated that it has no qualms with providing foreign aid as long as it goes to billionaires and foreign gas companies.”

For Simone Ogno, Finance and Climate Campaigner with ReCommon: 

« The Italian SACE was the first export credit agency to confirm its financial support for Mozambique LNG, and it did so in the absence of a new assessment on the social and environmental impacts associated with the project. US EXIM is today doing the same. In these choices we can see the close relationship between PM Giorgia Meloni’s government and President Donald Trump’s government, in complete disregard for the human rights violations associated directly and indirectly with Mozambique LNG.”

For Isabelle Geuskens, Just Transition Officer with Milieudefensie / Friends of the Earth Netherlands: 

The Dutch support remains on hold, with Minister Heinen committing to an inquiry into the human rights violations by Mozambican and other security forces and their relationship to project owner Total. It is important the Dutch stand firm in the face of pressures from TotalEnergies and ECAs like the US. In turbulent times like these, it is key to lead by example by showing that good governance is about handling public finance responsibly and transparently, and by putting human rights over dirty business.”

For Ayumi Fukakusa, Deputy Director with Friends of the Earth Japan:

“Japanese export credit agencies Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI) combined are the largest public financiers for the Mozambique LNG project. They should be transparent and accountable to their financing but they have not given any clear explanations how they conduct their due diligence for the project. This project is harming communities and human rights violations are reported. Japanese ECAs should support the call for independent investigation and not proceed with financing.”

For Collin Rees, US Campaign Manager at Oil Change International: 

« Mozambique LNG is a climate and human rights nightmare. By approving this loan for TotalEnergies’ deadly project, the Trump administration is committing billions in taxpayer funds to a fossil fuel project linked to severe human rights violations, while simultaneously cutting federal jobs and essential public services for working families. Public money should support a healthy society and a sustainable future — not handouts for corporate polluters and human rights abusers. But the UK still has the option to take a different path. Keir Starmer faces a clear choice: join with Trump and other far-right governments in providing taxpayer backing for this disastrous project – already linked to hundreds of tragic deaths, including a British citizen – or show courage and break with the previous UK Government’s foolish decision to support this nightmare. »

Press release by

Les Amis de la Terre France

Reclaim Finance

Friends of the Earth US

ReCommon

Milieudefensie / Friends of the Earth Netherlands

Friends of the Earth Japan

Justiça Ambiental! / Les Amis de la Terre Mozambique

Urgewald

Oil Change International

Notes
1

Reuters, US approves $5 billion loan to TotalEnergies for Mozambique gas project, March 2025https://www.reuters.com/business/energy/us-frees-up-almost-47-billion-loan-totalenergies-mozambique-gas-project-ft-2025-03-13/

2

Alex Perry, Palma Massacre, June 2023. https://www.alex-perry.com/palma-massacre/

3

Alex Perry, Politico, All must be beheaded: Allegations of atrocities at French energy giant’s African stronghold, September 2024. https://www.politico.eu/article/totalenergies-mozambique-patrick-pouyanne-atrocites-afungi-palma-cabo-delgado-al-shabab-isis/

Le Monde, TotalEnergies savait que des exactions étaient commises sur son site gazier au Mozambique, November 2024. https://www.lemonde.fr/afrique/article/2024/11/24/violences-arrestations-disparitions-totalenergies-savait-que-des-exactions-etaient-commises-sur-son-site-gazier-au-mozambique_6412216_3212.html

SourceMaterials, Don’t look back or we’ll shoot, November 2024. https://www.source-material.org/mozambique-total-lng-military-human-rights/

Le Monde, Comment des soldats payés par TotalEnergies ont séquestré des civils au Mozambique, January 2025. https://www.lemonde.fr/afrique/video/2025/01/28/comment-des-soldats-payes-par-totalenergies-ont-sequestre-des-civils-au-mozambique_6520247_3212.html

4

Platform DECIDE – Platform for Democracy, Citizenship, Rights and Studies. https://pdecide.org/blog/preliminary-report-on-the-post-electoral-context-in-mozambique-3-months

5

Financial Times, TotalEnergies failed to convince Joe Biden’s team to back $20bn African project, January 2025. https://www.ft.com/content/025849c8-a928-4dbc-9f25-b5c8c9caf1cd

6

ReCommon, The Italian government confirms: SACE and Cassa Depositi e Prestiti will finance Mozambique LNG, January 2025. https://www.recommon.org/en/the-italian-government-confirms-sace-and-cassa-depositi-e-prestiti-will-finance-mozambique-lng/

8

Financial Times, UK takes legal advice over pulling out of $20bn Total LNG project in Mozambique, January 2025. https://www.ft.com/content/025849c8-a928-4dbc-9f25-b5c8c9caf1cd

9

The coalition specifically asks for financial institutions to support the call for an urgent independent international investigation into an alleged massacre of civilians, reportedly committed near TotalEnergies’ Afungi premises between July and September 2021 by public security forces claiming to be in charge of protecting the gas site. The coalition emphasises the need for the investigation to be conducted by an international or regional intergovernmental human rights mechanism – such as the Office of the United Nations High Commissioner for Human Rights (OHCHR) and the African Commission on Human and Peoples’ Rights. The coalition further urges financiers to withdraw their commitments of support for the project and withhold support if the force majeure is lifted – a legal step required for the project to resume – until all facts and responsibilities are investigated, and the results of such an investigation made public.