The United States and Qatar have issued a joint warning to the European Union, claiming that new climate and human rights regulations could jeopardize trade, investment, and energy security across the bloc. The caution comes as EU lawmakers prepare to debate the Corporate Sustainability Due Diligence Directive (CSDDD) as early as this week.
In a letter to EU leaders, seen by the Financial Times, US Energy Secretary Chris Wright and Qatari Energy Minister Saad al-Kaabi described the directive as an “existential threat” to Europe’s economic growth, competitiveness, and energy resilience. The ministers warned that the law could disrupt liquefied natural gas (LNG) supplies, a critical energy lifeline for the EU following Russia’s invasion of Ukraine in 2022.
“This comes at a critical moment when our countries and companies are striving not only to sustain but to significantly increase the reliable supply of LNG to the EU,” the letter read. It also cautioned that the directive could undermine the $750bn trade deal struck in July between the EU and the United States, which commits European states to buying large volumes of US energy by 2028.
The directive, which would take effect from 2027, obliges companies to prevent environmental and human rights harms across their supply chains and allows EU member states to fine violators up to 5% of global turnover. It applies to non-EU companies with more than €450 million in turnover within the bloc, raising concerns about its extraterritorial impact on US and Qatari firms.
The letter emphasized that “beyond the direct energy security risks, the CSDDD also threatens to disrupt trade and investments across nearly all the EU’s partner economies.” Both ministers urged EU leaders to “take immediate, decisive action by reopening substantive dialogue with your global partners, including the US and Qatar, to address these critical provisions in the CSDDD.”
The warning reflects tensions between major energy producers and the EU’s push for a faster transition to clean energy. Currently, about 16% of Europe’s gas comes from the US and 4% from Qatar, while European energy ministers recently agreed to phase out the remaining 19% of gas imported from Russia by 2027.
Several European leaders, including German Chancellor Friedrich Merz and French President Emmanuel Macron, have also called for revisions to the directive. Meanwhile, US oil and gas companies have opposed provisions requiring plans to reduce greenhouse gas emissions in line with the Paris climate agreement, arguing they could expose firms to litigation.
