Judges split over UKEF funding of Mozambique gas project

(Drill or Drop, London, 15 March 2022) Two judges have disagreed in what could be a landmark case over whether the UK government acted lawfully in approving $1.15bn financing for a liquified natural gas (LNG) project in Mozambique. The case at the High Court, brought by Friends of the Earth, examined the decision to fund the scheme through the export credit agency, UK Export Finance (UKEF), approved by the Treasury and the Department for International Trade. The judges’ split decision means the judicial review has not yet succeeded and a court order is awaited with the final result. Friends of the Earth said today it was likely to appeal if the judicial review was refused. The case, which tested compliance with the Paris Agreement, centred on the failure to assess the project’s total climate impact by taking into account emissions produced from the end-use of the gas, known as scope 3. This is thought to be the first time a judge has argued that to be consistent with the Paris Agreement all finance flows must be shown to be in line with the international ambition to limit temperature rise to 1.5C.