In a rare show of alignment, the United States and Qatar have jointly warned the European Union that its proposed Corporate Sustainability Due Diligence Directive (CSDDD) could pose an “existential threat” to global energy affordability and security. The two nations argue that the EU’s plan to impose extraterritorial fines for non-compliance with environmental and human rights standards risks undermining liquefied natural gas (LNG) supply chains and driving up energy costs for European consumers.
The directive, adopted in 2024 as part of the EU’s Green Deal framework, requires large companies operating in the bloc to identify and address human rights and environmental impacts across their global supply chains—or face penalties of up to 5% of worldwide turnover. Critics say this exposes foreign state-owned firms, such as QatarEnergy, to disproportionate legal and financial risks.
Qatar Warns It May Halt LNG Supply to Europe
Speaking to Reuters in an exclusive interview on October 16, Qatar’s Energy Minister and QatarEnergy CEO Saad al-Kaabi said that unless the EU further amends the law, “Qatar will not be able to justify doing business in the EU, be it in LNG or other products.” He warned that the current version of the CSDDD “poses a significant risk” to QatarEnergy and could ultimately “harm European end consumers.”
Qatar, one of the world’s top LNG exporters, currently supplies between 12% and 14% of Europe’s LNG imports, a critical contribution since Russia’s invasion of Ukraine in 2022. Kaabi added that Qatar had sought “constructive engagement” with the European Commission and member states “for almost a year now,” but had received no response.
The minister expressed concern that the EU’s sustainability requirements could make future contracts unviable, citing the potential for heavy fines if companies fail to demonstrate compliance with the Paris Agreement goal of limiting global warming to 1.5°C. “Europe must decide if it wants to continue to attract investment into the bloc,” Kaabi told Reuters, warning that failure to act could “undermine efforts to strengthen competitiveness and prevent economic deterioration.”
The European Commission did not immediately respond to Reuters’ request for comment.
Qatar warned EU countries that it may stop supplying LNG if its sustainability law isn’t amended, Reuters reports 🇶🇦 🇪🇺 ⚠️
👉 The rule requires companies to make climate transition plans or face stiff fines. But Qatar says it has no net-zero planshttps://t.co/ZUgwzASUyI pic.twitter.com/2X6bxE21O0
— Stephen Stapczynski (@SStapczynski) July 27, 2025
Transatlantic Pressure on Brussels
The U.S. has echoed some of Qatar’s concerns, emphasizing the potential for the CSDDD to disrupt trade and energy partnerships. Analysts say the transatlantic pressure on Brussels represents a growing backlash against the EU’s strategy of exporting its environmental standards through corporate regulation.
Francesco Sassi, an energy analyst cited by intelligence platform EklipX, described the joint U.S.-Qatar stance as an “unprecedented alliance” that places Brussels under “significant geopolitical pressure” to compromise on its Green Deal ambitions. “The context is deeply complex and nuanced,” Sassi wrote on X (formerly Twitter), warning against simplistic interpretations of the dispute.
A Shifting Energy Landscape
The controversy over the CSDDD comes amid other developments reshaping the global LNG market. A recent arbitration ruling in favor of BP and against U.S.-based Venture Global highlighted the legal and commercial tensions surrounding the rapid expansion of U.S. LNG exports.
Analysts note that if the EU proceeds with the directive, exporters from countries with stronger alignment to EU sustainability standards—such as Norway, Algeria, Australia, and Canada—could gain market share. However, experts caution that large-scale rerouting of global LNG trade flows remains unlikely in the short term.
A Balancing Act for Europe
As Brussels continues to debate the final scope of the CSDDD, the issue underscores a deeper dilemma for EU policymakers: how to reconcile the bloc’s ambitious climate goals with the geopolitical and economic realities of energy dependence.
For now, both Washington and Doha are urging the EU to rethink its approach. Whether Brussels will yield to that pressure—or double down on its commitment to sustainability-led regulation—remains a defining question for Europe’s energy future.
🚨🇺🇸The U.S. and🇶🇦Qatar jointly warn the🇪🇺EU that its CSDDD is an "existential threat," risking LNG supply affordability via extraterritorial fines.
This unprecedented alliance pressures Brussels to compromise on its Green Deal coreRead the analysis
📜https://t.co/HIugNfH5Cg https://t.co/5I4xRWD16K pic.twitter.com/SWkViSCWb9— Francesco Sassi (@Frank_Stones) October 24, 2025