Unusually, the Divisional Court has split over Friends of the Earth’s legal challenge to UK Export Finance’s funding for a liquid natural gas project in Mozambique.

One judge ruled the finance unlawful on the basis of incompatibility with the Paris Agreement and 1.5˚C:

“In order for UKEF to demonstrate compliance with Article 2(1)(c), it had to

demonstrate that funding the project is consistent with a pathway towards limiting

global warming to well below 2°C and pursuing efforts to 1.5°C …

 

The failure to quantify the Scope 3 emissions, and the other flaws in the Climate Report

mean that there was no rational basis by which to demonstrate that funding for the

Project is consistent with Article 2(1)(c) of the Paris Agreement on Climate Change and

a pathway to low greenhouse gas emissions.”