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U.S. and Qatar Escalate Pressure on EU Climate Law, Warning of LNG Supply Risks

EU lawmakers will revisit the directive in mid-November following a vote rejecting proposed changes.

Overview

  • In an Oct. 22 open letter, U.S. Energy Secretary Chris Wright and Qatari Energy Minister Saad Sherida Al-Kaabi urged EU leaders to repeal or rewrite the Corporate Sustainability Due Diligence Directive.
  • The letter targets the directive’s extraterritorial scope, transition-plan mandates, penalties, and civil liability provisions, arguing they endanger affordable, reliable energy for Europe.
  • The officials warned that noncompliance penalties could reach up to 5% of a company’s global turnover and said the rules could jeopardize investment, jobs, and trade commitments.
  • The European Parliament recently rejected proposed amendments and is set for a plenary vote in mid-November, as EU institutions signal potential narrowing of civil liability but no full rollback.
  • The push comes as the U.S. expands LNG capacity with final approval for Venture Global’s CP2 terminal and touts recent success stalling a UN shipping fee, while the U.S. and Qatar together supply a significant share of Europe’s gas.