Twenty-nine banks refuse funding for massive papua new guinea lng project over climate and rights concerns

A growing coalition of 29 international banks and export credit agencies has rejected financing for a major liquefied natural gas (LNG) project in Papua New Guinea, dealing a significant blow to French energy giant TotalEnergies’ ambitious fossil fuel venture. The financial institutions cited serious concerns about climate impact, environmental destruction, and human rights violations as reasons for their withdrawal.

The proposed project, located in Papua New Guinea’s Gulf and Central provinces, would have enormous environmental consequences. With plans for 11 wells, a processing plant, and 200 miles of pipeline infrastructure, the facility could export 5.6 million metric tons of LNG annually while generating a staggering 220 million metric tons of CO2 emissions each year—roughly equivalent to Spain’s entire carbon footprint. Major financial institutions including ING, BNP Paribas, Crédit Agricole, and Standard Bank have publicly distanced themselves from the project.

Environmental groups have raised additional alarms about the project’s threat to biodiversity in this ecologically rich region. The mountainous area is home to approximately 100 species that remain unstudied by scientists, making the potential ecological losses immeasurable. In December 2025, six international NGOs filed a formal complaint with the Equator Principles Association, arguing the project fails to meet established environmental and social risk standards.

Despite the mounting financial and environmental opposition, TotalEnergies maintains the project will proceed as planned, though securing alternative funding may prove increasingly challenging as more institutions adopt stricter climate policies.