Published by Solutions For Our Climate (SFOC), January 2024.
Kim & Oh, ‘Total Turmoil: Unveiling South Korea’s Stake in Mozambique’s Climate and Humanitarian Crisis’, January 2024, Solutions For Our Climate (SFOC)
The report identifies the participation of South Korean corporations in Mozambique’s liquified natural gas (LNG) projects and lays out the risks and flaws in the project that affect the economic feasibility and ethical correctness of the project. It is published by Solutions For Our Climate (SFOC).
The involvement of South Korean stakeholders in the LNG projects raises alarming concerns. By providing financial support for the LNG projects in Mozambique, public finance institutions have failed to adequately assess human rights, climate, environmental, and security risks associated with the projects in accordance with both international and internal guidelines. Samsung Heavy Industries faces criticism for its involvement in controversial LNG projects in Mozambique, which potentially conflicts with its sustainability initiatives and ESG (Environmental, Social and Corporate Governance) commitments. Additionally, the economic feasibility of new gas projects in the Mozambique Area 4 basin, where the Korea Gas Corporation holds a 10% stake, is questionable due to factors such as low profitability, regional instability, declining gas demand, and fierce market competition.
Some key recommendations to relevant stakeholders are :
Public financiers should withdraw their financial backing from Mozambique gas projects and join the Clean Energy Transition Partnership (CETP) to end fossil fuel investment.
Public financiers should establish Human Rights, Environmental Impact, and Security Assessment processes.
KOGAS should consider divesting its stake in Area 4.
The South Korean shipbuilding industry should transition away from the fossil fuel business.
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