On Thursday (19), experts from the United Nations (UN) expressed concern over the African Development Bank’s (AfDB) decision to approve a $150 million loan. The financing is intended for the floating liquefied natural gas (FLNG) project located in northern Mozambique. This stance comes at a time when debate is intensifying over the impacts of the gas industry in Cabo Delgado, wrote the Club of Mozambique, citing a statement.
According to experts, the project raises significant concerns regarding human rights and the environment. The assessment presented indicates risks associated with the intensification of existing social and environmental problems. “The project risks exacerbating human rights violations, contributing to climate change, and diverting scarce public resources from urgently needed investments in sustainable renewable energy,” they stated.
The analysis also highlights that the project’s impacts could exacerbate structural challenges in the region. Among the key points is the possibility of worsening human rights issues in the gas sector in Cabo Delgado. “The offshore project could exacerbate longstanding human rights issues across the gas sector in the province of Cabo Delgado, Mozambique,” they noted.
The track record of liquefied natural gas projects in the region was also cited as a cause for concern. In past experiences, there have been shortcomings in the consultation processes with local communities. This limitation reduced community participation in decision-making and restricted access to the benefits generated by the projects.
As a result, there have been losses of livelihoods and lasting socioeconomic changes, as communities dependent on fishing, agriculture, and natural resources have been particularly affected. This scenario unfolds against a backdrop already marked by displacement caused by armed conflict and impacts associated with climate change.
Despite promises of job creation, experts believe that the benefits remain limited for local communities. Factors such as high illiteracy rates and limited access to education hinder the ability to take advantage of opportunities. This reality contributes to increasing inequalities in the region.
On the environmental front, significant risks associated with the Coral Norte FLNG Project have also been highlighted. Among these, the increase in greenhouse gas emissions, including methane, stands out. These impacts could exacerbate air pollution and intensify the region’s environmental vulnerability.
The experts’ position also raises questions about the role of international financial institutions. “We are deeply concerned that a major multilateral development bank is financing a project of this nature at a time when the harmful environmental and climate consequences of fossil fuel expansion are well known,” they stated.
Within the framework of international standards, it was noted that companies and financial institutions must act responsibly. The United Nations Guiding Principles on Business and Human Rights require the identification, prevention, mitigation, and remediation of negative impacts. This framework reinforces the need for greater rigor in financing decisions.
The AfDB’s decision was also deemed inconsistent with its 2021–30 Climate Change and Green Growth Strategy. According to experts, the measure also contradicts the International Court of Justice’s Advisory Opinion on climate change. This position conflicts with the global goal of decarbonizing economies this decade.
In this context, experts advocated for the suspension of financing for fossil fuel projects. The proposal includes redirecting investments toward more sustainable energy solutions. The goal is to align financial decisions with international commitments.
The central concern remains the long-term impact of these decisions. “Continuing to approve new fossil fuel exploration and production projects carries the risk of locking in high-emission infrastructure that is incompatible with the 1.5-degree Celsius temperature limit and undermines the human right to a clean, healthy, and sustainable environment,” they concluded.
