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You are here: Home / cat / Environmental Groups Appeal Denial of Injunction Against $4.7B Fossil Fuel Handout

Environmental Groups Appeal Denial of Injunction Against $4.7B Fossil Fuel Handout

Dated: November 21, 2025

Friends of the Earth US (FOE-US) and Justiça Ambiental (JA) have filed an appeal with the U.S. Court of Appeals for the D.C. Circuit, seeking to halt nearly $5 billion in financing by the U.S. Export-Import Bank (EXIM) for the Mozambique LNG project. This follows a lower court’s October 10 decision denying their request for a preliminary injunction, despite acknowledging that withholding the funds could prevent “irreparable harm.” The appeal challenges that ruling and urges the court to stop EXIM from disbursing funds to TotalEnergies until the case is resolved.

The initial lawsuit, filed in July 2025 and represented by EarthRights International, argues that EXIM’s approval of taxpayer financing for the LNG project violates federal law. FOE-US and JA emphasize the ongoing violence in northern Mozambique, particularly near the gas site, where military protection has prioritized the project over local civilian safety. JA has warned that advancing the project with U.S. government funds could exacerbate the humanitarian crisis.

The plaintiffs highlight that EXIM’s approval process was irregular, noting that President Donald Trump’s February 2025 appointments to EXIM’s Board were made without Senate consent. The “acting” board then approved the loan in March 2025 without conducting required environmental reviews, economic assessments, or allowing public and congressional input. FOE-US and JA contend that these procedural failures demonstrate EXIM’s disregard for its own charter and federal law.

The Mozambique LNG project has already displaced thousands of local residents, caused significant environmental damage, and continues to operate amid violent conflict. It has faced allegations of serious human rights violations, with TotalEnergies now facing a criminal complaint in France accusing the company of complicity in war crimes. FOE-US and JA argue that these ongoing risks underscore the urgent need to halt EXIM’s funding until the legal and humanitarian implications are fully considered.

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