Gas extraction worsened already dire situation in the North of Mozambique
Both ENDS is shocked by the dramatic news in the past days coming from Palma, Cabo Delgado, Mozambique. Our thoughts go to those who lost their lives or who are still missing, and their loved ones. Both ENDS is in close contact with our local partners to support them wherever we can. Many people are still missing, among whom members of farmers union UPC.
On the 24th of March, several hundred insurgents attacked the coastal town of Palma in northern Mozambique, located a few kilometers away from the onshore facilities of a US$20 billion gas project led by Total. The exact number of casualties remains unknown but dozens of people, including foreign nationals, are estimated to have been killed in the attack. For years, civil society organisations expressed their fears that the gas project would worsen the situation for local communities in an area that was already facing many difficulties, such as poverty and illegal trade. Since late 2017, the conflict in the area has increased with many insurgent attacks. The conflict has caused over 2,500 civilian deaths and contributed to the displacement of 668,000 as of the end of 2020, mostly women and children.
Local communities have so far not benefited from the gas project, to the contrary. Although the involved gas companies assured that the gas extraction would bring jobs and prosperity for the people in the region, unfortunately fisher folk and and farming communities are worse off than before the start of the project. Many have lost access
to fertile land and fishing grounds and have had to leave their homes. The compensation procedure is unclear and chaotic. When relocating people, the authorities have taken too little account of the social and geographic context, which resulted in fisher folk having been relocated inland where they can no longer fish. Also, conflicts emerged between local people and newcomers as local people had to make their already scarce land available to the newcomers.
Dutch support for the gas extraction
The Dutch government and Dutch companies are actively involved in the Mozambique LNG project. Dutch dredging company Van Oord recently moved its vessels to Palma to work on the offshore gas activities, but pulled back due to the latest attack. The export credit agency of the Dutch State, Atradius DSB, is currently deciding whether or not
to support the massive gas project with a loan guarantee of 660 million USD. It remains unclear why Atradius DSB has not yet provided the support while other export credit agencies from for example the UK, USA and Italy already have. Together with other Dutch NGOs, Both ENDS has filed a Freedom of Information request to get more clarity on the information used in the due diligence of Atradius DSB.
Dutch responsibility extends to the local people
Both ENDS has called on the Dutch government, Atradius DSB and Van Oord to do everything in their power to not only ensure the security of Dutch citizens in the area, but also that of local communities. After everyone is safe they need to think hard if they still want to be involved in this project. Both ENDS is in good contact with the Dutch actors and our local partners to ensure the safety and well being of everyone involved.
Dossier text about the gas development in Mozambique
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In 2011 one of the world’s largest gas reserves was found in the coastal province of Cabo Delgado, in the north of Mozambique. A total of 35 billion dollars has been invested to extract the gas. Dozens of multinationals and financiers are involved in these rapid developments. It is very difficult for the people living in Cabo Delgado to exert influence on the plans and activities, while they experience the negative consequences. With the arrival of these companies, they are losing their land.
News / 21 July 2020
At the end of last week, oil and gas company Total announced that, through its export credit insurer Atradius DSB, the Dutch government is participating in a funding package for a controversial gas extraction project in Mozambique. The project, in which various Dutch and foreign companies are involved, is having a deep impact on the local population and the natural environment in the area. Which Dutch companies the government will be insuring is not yet clear.
Press release / 19 May 2021
Amsterdam, 19 May 2021 – On 25 March, a day after violent attacks in northern Mozambique, the Dutch state decided to provide dredging company Van Oord with export credit insurance worth 900 million euros for its activities in the country. The company is conducting dredging operations for a highly controversial gas project that, according to Mozambican interest groups, is playing a prominent role in the escalating violence in the region. Civil society organisations Both ENDS, Milieudefensie and Oil Change International and their Mozambican partners are alarmed about the situation and have called the Dutch government and Dutch export credit agency Atradius DSB to account.
News / 12 July 2021
At the beginning of this year, the Dutch government provided Dutch companies with export insurance worth 903 million euros to enable them to participate in a gigantic natural gas project in the north of Mozambique. Together with partners from Mozambique and the Netherlands, Both ENDS has been conducting a dialogue with export credit agency Atradius DSB and the responsible Ministries of Finance and Foreign Affairs on the possible financial, environmental and social risks of the gas project.
Publication / 11 November 2020
Press release / 18 November 2019
The Netherlands provides export credit insurances and guarantees worth 1.5 billion euros annually to Dutch companies active in the oil and gas sector abroad. This support amounts to one and a half times the annual amount that the Cabinet of Prime Minister Rutte mobilises for climate initiatives worldwide. The intended effects of Dutch international climate policy are more than offset by this fossil export support. That is the conclusion of a new report from Both ENDS which is published today.
Publication / 17 November 2019
Publication / 18 June 2017
News / 15 April 2021
On Wednesday, April 14, seven countries, including the Netherlands, launched an initiative called Export Finance for Future (E3F), in which they set a number of ambitions with regard to phasing out export support for the fossil sector. Many NGOs worldwide, including Both ENDS in the Netherlands, have been calling for such an initiative in recent years and we are therefore pleased with this step. However, to achieve results and contribute to the Paris climate goals, countries will have to commit to much more ambitious goals than those now set. Concerned civil society organizations, including Both ENDS, therefore prepared a statement detailing the weaknesses they felt in the policy proposed by E3F, supplemented with recommendations for improvements.
News / 27 November 2020
Next week, the climate case brought against Royal Dutch Shell by Dutch environmental organisation Milieudefensie is due to start. Milieudefensie hopes to force the company to stop causing dangerous climate change and adopt a more sustainable course. Six Dutch organisations have decided to become co-plaintiffs in the case. They include ActionAid and Both ENDS, organisations that work outside the Netherlands on human rights, gender equality, environment and sustainable development. Though, at first glance, the case may not seem relevant to them, nothing is farther from the truth, as Nils Mollema of ActionAid and Niels Hazekamp of Both ENDS explain.
Press release / 27 September 2017
Despite climate agreements, the Netherlands supports the fossil sector with 7.6 billion euros a year
Although outgoing economics minister Henk Kamp stated in May of this year that fossil fuels are not subsidised in the Netherlands, a report out today shows that this is clearly not the case. The report. ‘Phase-Out 2020: Monitoring Europe’s fossil fuel subsidies’, by the Overseas Development Institute (ODI) and Climate Action Network Europe (CAN-Europe), says that the Netherlands is supporting the fossil sector at home and abroad with more than 7.6 billion euros a year (1). The Netherlands made international agreements as long ago as 2009 (2) to ban subsidies for fossil fuels. Environment NGO Milieudefensie and Both ENDS – both members of CAN-Europe – call attention to these findings because they find it unacceptable that the government perpetuates our dependence on fossil fuels in this way.
Almost two-thirds of the export credit insurances that Atradius DSB provided in the 2012-2018 period went to the fossil energy sector. That is contrary to the climate agreements that the Netherlands signed in Paris.
Press release / 12 February 2019
Amsterdam, 12 February 2019 - Fossil fuel giant Royal Dutch Shell is facing legal action from environmental and human rights organisations if it fails to align its growth plans with global climate goals aimed at averting catastrophic global warming.
News / 11 December 2017
Yesterday, the French President Macron, the President of the World Bank Group, Jim Yong Kim, and the Secretary-General of the United Nations, António Guterres, met with international leaders and committed citizens from around the world in Paris. According to the organisers, the aim of this gathering was to 'address the ecological emergency for our planet' as 'two years to the day after the historic Paris Agreement, it is time for concrete action.'
News / 13 July 2021
The government provides an average of 1.5 billion euros a year in export support for fossil projects by Dutch companies, in the form of insurance and guarantees. The climate crisis requires that the Netherlands and other countries stop providing export support for fossil energy projects, whether it be coal, oil or gas, before the end of this year.
Press release / 26 May 2021
The Hague, 26 May 2021 - For the first time in history, a judge has held a corporation liable for causing dangerous climate change. Today, as a result of legal action brought by Friends of the Earth Netherlands (Milieudefensie) together with 17,000 co-plaintiffs and six other organisations (ActionAid Netherlands, Both ENDS, Fossil Free Netherlands, Greenpeace Netherlands, Young Friends of The Earth Netherlands and the Wadden Sea Association) the court in The Hague ruled that Shell must reduce its CO2 emissions by 45% within 10 years. This historic verdict has enormous consequences for Shell and other big polluters globally.
Blog / 17 February 2018
On 7 February, Dutch newspaper Trouw published an article on abolishing subsidies for fossil fuels. The article claimed that the measure would only generate a limited climate benefit. Yet the study on which the article is based shows the opposite. Niels Hazekamp (Both ENDS) and Laurie van der Burg (Overseas Development Institute, ODI) wrote a short opinion article on the issue.
Press release / 11 November 2020
Since the signing of the Paris Climate Agreement, rich countries have provided almost 50 times as much export support for fossil fuel related projects as for clean energy projects in four African countries. This is the conclusion of a report written by five environmental organisations from Ghana, Nigeria, Togo and Uganda, in cooperation with Friends of the Earth Netherlands and Both ENDS. The rich countries insured energy projects with a total value of 11 billion US dollars through their export credit agencies (ECAs). More than half of this export support is related to fossil fuels. Only 1% went to sustainable renewable energy.
External link / 31 May 2018
In 2017 Both ENDS stepped up its efforts to stop the Dutch government from supporting the fossil fuel industry. Phasing out fossil fuels is key to achieving the goals set in the Paris Climate Agreement. To Both ENDS, there is another reason: fossil fuel-related projects often have disastrous effects for the poorest people in the Global South.
News / 4 May 2021
Today, two independent experts brought out a legal opinion on the obligations of countries and their export credit agencies under international law in relation to export support for fossil fuels. According to the report, emissions by fossil fuels and the related infrastructure need to be reduced urgently.