The litigation was brought by a coalition of climate-focused NGOs and community advocacy organizations, including Friends of the Earth, Center for Biological Diversity, and several local environmental justice groups. Their central claim is that EXIM Bank failed to adequately assess the environmental and social impact of the project, as required under the National Environmental Policy Act (NEPA).
“EXIM Bank is using taxpayer dollars to bankroll a project that will pollute the environment, threaten coastal ecosystems, displace communities, and worsen the climate crisis,” said Michelle Chan, Vice President of Programs at Friends of the Earth. “This is not just poor policy—it’s a violation of the law.”
The LNG development in question, operated by an international consortium of fossil fuel companies, is one of the largest of its kind in Africa. While it promises substantial economic returns, activists say it also contributes significantly to greenhouse gas emissions and exposes nearby populations to dangerous health and safety risks.
According to the plaintiffs, the project is also linked to increased militarization in the region, as the Mozambican government has deployed security forces to protect the site amid growing local unrest and displacement.
The lawsuit highlights inconsistencies in the U.S. government’s climate commitments. While the Biden administration has pledged to steer federal agencies toward clean energy and reduced carbon emissions, critics argue EXIM Bank’s continued support for fossil fuel projects undermines that pledge.
Legal experts suggest the case could test the boundaries of how U.S. agencies must align international financing with climate laws and federal environmental review procedures.
“This suit forces a fundamental question,” said Maya Patel, an environmental law professor at Georgetown University. “Can a U.S. agency fund global fossil fuel expansion without a full accounting of climate and human rights impacts? The answer could redefine the reach of environmental compliance.”
EXIM Bank has defended its decision, stating that its review process complied with all applicable laws and that the project will contribute to economic development and energy security in Mozambique.
