The United States will provide a $4.7-billion loan to a fossil gas plant in Mozambique that has been described as a “carbon bomb” and is beset by allegations of human rights abuses.

The US Export-Import Bank (EXIM), a government agency, on Thursday approved financial support for the liquefied natural gas (LNG) project run by French energy giant TotalEnergies in the country’s northern Cabo Delgado region.

US EXIM has yet to publicly confirm the deal, but its approval has been widely reported.

The US backing was seen as key to unlocking financing for what is set to be one of Africa’s largest-ever energy projects, with a total expected cost of $20 billion. The loan also marks a U-turn from a possible ban on public funding for oil and gas developments abroad that rich countries, including the US, were on the verge of agreeing at the end of last year.

Risky investment

The US export credit agency had already agreed to finance the Mozambique project in 2019 during President Donald Trump’s first stint in office, but fresh approval was required after TotalEnergies triggered a contractual “force majeure” pause in 2021.

The French energy giant halted construction on the facility following an attack by the Al-Shabaab militant group in the Cabo Delgado region where the plant is located. Up to 1,200 civilians are estimated to have died or gone missing in the assault.

Age of “climate whiplash” puts residents of Africa’s fast-growing cities in danger

French authorities began investigating Total last year for possible involuntary manslaughter after survivors of the attack accused the company of failing to ensure the safety of its subcontractors. Total has rejected the accusations.

An investigation by Politico also alleged that Mozambican soldiers operating out of Total’s plant abducted, raped and killed dozens of civilians. The company’s Mozambican subsidiary told Politico it had no knowledge of the events.

Total had hoped to restart construction at the site in 2024 but conceded this January that it would not begin operations before 2029 amid security concerns and funding uncertainties.

Rich nations ignore polluting past to claim climate plans are 1.5C-compatible

Patrick Pouyanné, CEO of TotalEnergies, launched a lobbying blitz at the end of last year, hoping to secure the backing of the Biden administration for the project, but his efforts ultimately failed.

Speaking to Bloomberg this week on the sidelines of CERAWeek, Poyuanné asserted, “now you have a functional US EXIM” after President Trump appointed a new board at the agency.

The Total boss added that “most of the contracts have been awarded to US companies”, which he described as the “driver” of the US government’s support for the project.

‘Carbon bomb’

Opposing the mega-project, climate campaigners have described the Mozambique LNG venture as a “carbon bomb” that threatens the world’s chances of keeping global warming in check. It could produce up to 121 million tonnes of CO2 equivalent every year over its life-cycle of close to four decades, including emissions generated from the final use of the gas, according to calculations by Friends of the Earth.

Collin Rees, US campaign manager at Oil Change International, called the project “a climate and human rights nightmare”.

“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 [in the US],” he added.

Kate DeAngelis, economic policy deputy director at Friends of the Earth US, described EXIM’s decision as “the pinnacle of government waste and an egregious abuse of taxpaye