Focus on the BIG picture.
Wednesday, Oct 22, 2025

US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation

Washington and Doha jointly caution that the EU’s new corporate-sustainability law could undermine investment and liquefied natural gas supplies
The United States and Qatar have issued a joint warning to the European Union that a sweeping new EU corporate-sustainability law could jeopardise trade, investment and energy supplies.

In a letter addressed to EU leaders, the energy ministers of both countries described the Corporate Sustainability Due Diligence Directive (CSDDD) as an existential threat to the growth, competitiveness and resilience of the European economy and to its energy security.

The CSDDD, set to begin phasing in from 2027, empowers EU member states to fine companies — including non-EU firms with significant EU operations — up to five per cent of their global turnover for failing to address environmental, climate or human-rights issues in their supply chains.

Qatar, one of Europe’s largest suppliers of liquefied natural gas (LNG), warned in a separate letter to Belgium that the new regime is incompatible with its business model and that it may redirect its LNG exports away from the EU if its concerns are not addressed.

The United States also pressed its case in the joint missive, emphasising that the directive’s extraterritorial scope threatens investment flows, supply-chain dynamics and bilateral trade – including the landmark agreement reached in July in which the US pledged some 750 billion dollars of energy exports to the EU.

The two countries contend that the CSDDD will impair the reliability of LNG supplies just as the EU seeks to wean itself off Russian gas and diversify sources.

According to the letter, the EU currently obtains around sixteen per cent of its gas from the US and about four per cent from Qatar.

In Qatar’s case, the energy minister, who is also chief executive of the state-owned energy company, asserted that the directive’s requirement for a climate-transition plan aligned with the Paris Agreement goal of limiting warming to 1.5 degrees Celsius is unworkable for QatarEnergy, which is not aiming for net-zero in the near term.

Doha also said that the EU’s recent proposals to ease the CSDDD – including a delay to mid-2028 and fewer supply-chain checks – still fall short of its demands.

The EU, for its part, is engaged in negotiations between member-states and the European Parliament over amendments to the directive.

Some European energy ministers have expressed concern that the rules may hinder the bloc’s ability to attract investment and secure energy supply, particularly given its decision to phase out the remaining nineteen per cent of Russian-gas imports by the end of 2027.

The warning from Washington and Doha marks a rare alignment of two major energy-exporting nations pressing Brussels to recalibrate its legislation.

They argue the regulation could not only disrupt existing long-term contracts but also hamper future trade and energy co-operation.

On the energy front, the EU has ramped up LNG imports in the wake of Russia’s full-scale invasion of Ukraine in 2022, leaving it increasingly reliant on global suppliers.

For the EU, the move presents a complex policy challenge: balancing its ambition to lead on climate and human-rights compliance through the Green Deal, while maintaining the energy and investment partnerships needed to underpin economic growth and stability.

The US-Qatar intervention suggests that the bloc may face difficult trade-offs if it proceeds with the directive in its current form.
Newsletter

Related Articles

0:00
0:00
Close
White House Announces No Imminent Summit Between Trump and Putin
China Presses Netherlands to “properly” Resolve the Nexperia Seizure as Supply Chain Risks Grow
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
Merz Attacks Migrants, Sparks Uproar, and Refuses to Apologize: “Ask Your Daughters”
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Nicolas Sarkozy begins five-year prison term at La Santé in Paris
Japan stocks surge to record as Sanae Takaichi becomes Prime Minister
This Is How the 'Heist of the Century' Was Carried Out at the Louvre in Seven Minutes: France Humiliated as Crown with 2,000 Diamonds Vanishes
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
Trump Accuses Colombia’s President of Drug-Leadership and Announces End to US Aid
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
U.S. Withholds $40.6 Million from California Over Truck Driver English-Proficiency Enforcement
Australia Confirms U.S. Access to Upgraded Submarine Shipyard Under AUKUS Deal
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
Brands Confront New Dilemma as Extremists Adopt Fashion Labels
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Erika Kirk Delivers Moving Tribute at White House as Trump Awards Charlie Presidential Medal of Freedom
China’s Implicit Beef Blockade Boosts Australian Cattle Exports
China Imposes Sanctions on South Korean Shipbuilder Over U.S. Ties
ScamBodia: The Chinese Fraud Empire Shielded by Cambodia’s Ruling Elite
Trump Conditions U.S. Support for Argentina on Milei’s Electoral Success
French PM Suspends Macron’s Pension Reform Until After 2027 in Bid to Stabilize Government
Orange, Bouygues and Free Make €17 Billion Bid for Drahi’s Altice France Telecom Assets
×