A lawsuit filed in the federal district court for the District of Columbia challenged the Export-Import Bank of the United States’ (EXIM’s) approval of a $4.7 billion loan to subsidize construction of a liquefied natural gas (LNG) project in Mozambique. The complaint alleged that EXIM previously approved a loan for the program in 2019 and 2020 but that new approval was required because the company leading the project, TotalEnergies SE, had declared force majeure in 2021 when insurgents attacked a nearby town, reportedly killing hundreds of residents, including project contractors. The complaint asserted that EXIM’s 2025 approval of the loan violated the Administrative Procedure Act (APA), including because EXIM’s “acting” Board exceeded its authority and also because the loan approval violated Export-Import Bank Act of 1945 (Bank Act) limits on over-subsidization and because EXIM did not complete necessary due diligence required by the Bank Act and set out in EXIM’s Environmental and Social Procedures. In addition, the complaint asserted that EXIM violated NEPA and the APA by failing to consider the project’s direct greenhouse gas emissions and impact on the global climate. 

Challenge to the Export-Import Bank of the United States’ approval of a $4.7 billion loan to subsidize construction of a liquefied natural gas  project in Mozambique.

Friends of the Earth U.S. v. Export-Import Bank of the United States

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Lawsuit Challenged Export-Import Bank’s Approval of Loan for Mozambique LNG Project

Filed

United States of America

District of Columbia

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Lawsuit Challenged Export-Import Bank’s Approval of Loan for Mozambique LNG Project

Policy instrument

Risk

Impacted group

Just transition

Renewable energy

Fossil fuel

Greenhouse gas

Economic sector

Adaptation/resilience

Finance