UK's $1.15 billion funding for Mozambique LNG project lawful -court

LONDON (Reuters) - The British government's funding of up to $1.15 billion for a liquefied natural gas (LNG) project in Mozambique is lawful, a London court ruled on Friday, dismissing an appeal by Friends of the Earth.

The environmental campaign group had asked London's Court of Appeal to rule the British government wrongly decided funding the project, led by French energy company TotalEnergies, was incompatible with the Paris Agreement on climate change.

UK Export Finance (UKEF) has committed to provide direct loans and guarantees to banks to support the design, build and operation of the $20 billion project.

Friends of the Earth's legal action over the decision failed in a lower court and was dismissed by the Court of Appeal in a written ruling on Friday.

(Reporting by Sam Tobin; editing by Sarah Young)