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U.S. and Qatar Warn EU That Corporate Climate Law Puts LNG Supply at Risk

Parliament now weighs revisions before a mid-November vote.

Overview

  • Energy Secretary Chris Wright and Qatari Energy Minister Saad Sherida Al-Kaabi sent a joint letter urging EU leaders to repeal or significantly revise the Corporate Sustainability Due Diligence Directive.
  • The letter targets Articles 2, 22, 27 and 29, arguing that climate-plan mandates for large non-EU firms and penalties of up to 5% of global turnover, along with civil liability, would harm suppliers.
  • The governments warn the rules threaten the affordability and reliability of energy for EU consumers and could disrupt trade, investment and employment across partner economies.
  • According to the European Commission, U.S. LNG supplied about 45% of Europe’s LNG in 2024 and Qatar about 12%, underscoring the suppliers’ leverage in the current dispute.
  • EU lawmakers are considering changes to reduce administrative burdens, with a vote on simplified sustainability and due diligence rules expected before the Nov. 13 plenary, while officials say the directive will not be scrapped outright.