EU Sustainability Rules Challenge LNG Trade

Qatar and the U.S. urge the EU to rethink its corporate sustainability rules, warning they may disrupt LNG trade. The EU is negotiating changes, but concerns persist about its impact on energy supply, economic competitiveness, and compliance burdens for non-EU firms.

Qatar and the United States have called on the European Union to reconsider its corporate sustainability rules, cautioning that they could hinder liquefied natural gas (LNG) trade with Europe. This comes as the EU is discussing amendments to potentially exclude more companies from the law, which mandates firms to address human rights and environmental issues in their supply chains or face heavy fines.

As the European Parliament prepares to vote on the proposed changes, there is significant concern about the rules' impact on energy supply and economic resilience in Europe. In an open letter, Qatari Energy Minister Saad al-Kaabi and U.S. Energy Secretary Chris Wright expressed worries over the future growth, competitiveness, and stability of the EU's industrial economy.

Amidst these discussions, Al-Kaabi revealed that Qatar might halt LNG supplies to the EU unless the rules are adjusted. The EU, meanwhile, continues to increase LNG imports from the U.S., its primary supplier. The corporate sustainability directive remains a contentious issue, with leaders like Germany and France pushing back, and companies like ExxonMobil demanding its withdrawal.

(With inputs from agencies.)