Qatar, U.S. Challenge EU's Corporate Sustainability Rules

Qatar and the U.S. have raised concerns over EU's corporate sustainability rules, citing threats to LNG exports. The directive, aimed at enforcing human rights and environmental standards, could hinder Qatar's energy trade with Europe. Despite revisions, Qatar believes the changes fall short of resolving key issues.

Qatar and the United States have jointly expressed concerns to EU leaders regarding the bloc's corporate sustainability rules, which they argue could adversely affect liquefied natural gas (LNG) exports. A statement by QatarEnergy on Wednesday highlighted these apprehensions, underscoring potential disruptions in business operations within the European Union.

The letter, co-signed by Saad al-Kaabi, Qatar's energy minister, and U.S. Energy Secretary Chris Wright, criticized the directive as a threat to energy supply affordability and reliability in Europe. The directive also poses an existential risk to the EU's industrial economy, emphasizing concerns over future growth and competitiveness.

Despite a recent move by the European Parliament's legal committee to soften the directive, key issues remain unresolved in Qatar's view. Qatar has been a significant LNG supplier to Europe, particularly since the geopolitical shifts following Russia's invasion of Ukraine. With Europe predicted to increase LNG imports this winter, the reliance on alternative gas sources is expected to grow.

(With inputs from agencies.)