Dubai Times

Live, Love, Leverage – Ya Habibi!
Wednesday, Oct 22, 2025

US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation

Washington and Doha jointly caution that the EU’s new corporate-sustainability law could undermine investment and liquefied natural gas supplies
The United States and Qatar have issued a joint warning to the European Union that a sweeping new EU corporate-sustainability law could jeopardise trade, investment and energy supplies.

In a letter addressed to EU leaders, the energy ministers of both countries described the Corporate Sustainability Due Diligence Directive (CSDDD) as an existential threat to the growth, competitiveness and resilience of the European economy and to its energy security.

The CSDDD, set to begin phasing in from 2027, empowers EU member states to fine companies — including non-EU firms with significant EU operations — up to five per cent of their global turnover for failing to address environmental, climate or human-rights issues in their supply chains.

Qatar, one of Europe’s largest suppliers of liquefied natural gas (LNG), warned in a separate letter to Belgium that the new regime is incompatible with its business model and that it may redirect its LNG exports away from the EU if its concerns are not addressed.

The United States also pressed its case in the joint missive, emphasising that the directive’s extraterritorial scope threatens investment flows, supply-chain dynamics and bilateral trade – including the landmark agreement reached in July in which the US pledged some 750 billion dollars of energy exports to the EU.

The two countries contend that the CSDDD will impair the reliability of LNG supplies just as the EU seeks to wean itself off Russian gas and diversify sources.

According to the letter, the EU currently obtains around sixteen per cent of its gas from the US and about four per cent from Qatar.

In Qatar’s case, the energy minister, who is also chief executive of the state-owned energy company, asserted that the directive’s requirement for a climate-transition plan aligned with the Paris Agreement goal of limiting warming to 1.5 degrees Celsius is unworkable for QatarEnergy, which is not aiming for net-zero in the near term.

Doha also said that the EU’s recent proposals to ease the CSDDD – including a delay to mid-2028 and fewer supply-chain checks – still fall short of its demands.

The EU, for its part, is engaged in negotiations between member-states and the European Parliament over amendments to the directive.

Some European energy ministers have expressed concern that the rules may hinder the bloc’s ability to attract investment and secure energy supply, particularly given its decision to phase out the remaining nineteen per cent of Russian-gas imports by the end of 2027.

The warning from Washington and Doha marks a rare alignment of two major energy-exporting nations pressing Brussels to recalibrate its legislation.

They argue the regulation could not only disrupt existing long-term contracts but also hamper future trade and energy co-operation.

On the energy front, the EU has ramped up LNG imports in the wake of Russia’s full-scale invasion of Ukraine in 2022, leaving it increasingly reliant on global suppliers.

For the EU, the move presents a complex policy challenge: balancing its ambition to lead on climate and human-rights compliance through the Green Deal, while maintaining the energy and investment partnerships needed to underpin economic growth and stability.

The US-Qatar intervention suggests that the bloc may face difficult trade-offs if it proceeds with the directive in its current form.
Newsletter

Related Articles

0:00
0:00
Close
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
AI and Cybersecurity at Forefront as GITEX Global 2025 Kicks Off in Dubai
EU Deploys New Biometric Entry/Exit System: What Non-EU Travelers Must Know
Ex-Microsoft Engineer Confirms Famous Windows XP Key Was Leaked Corporate License, Not a Hack
Israel and Hamas Agree to First Phase of Trump-Brokered Gaza Truce, Hostages to Be Freed
The Davos Set in Decline: Why the World Economic Forum’s Power Must Be Challenged
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
Archaeologists Recover Statues and Temples from 2,000-Year-Old Sunken City off Alexandria
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
Nvidia and Abu Dhabi’s TII Launch First AI-&-Robotics Lab in the Middle East
New Eye Drops Show Promise in Replacing Reading Glasses for Presbyopia
Dubai Property Boom Shows Strain as Flippers Get Buyer’s Remorse
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
UAE-US Stargate Project Poised to Make Abu Dhabi a Global AI Powerhouse
Trump and Starmer Clash Over UK Recognition of Palestinian State Amid State Visit
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
Actor, director, environmentalist Robert Redford dies at 89
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
Could AI Nursing Robots Help Healthcare Staffing Shortages?
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Big Oil Slashes Jobs and Investments Amid Prolonged Low Crude Prices
Social Media Access Curtailed in Turkey After CHP Calls for Rallies Following Police Blockade of Istanbul Headquarters
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Tether Expands into Gold Sector with Profit-Driven Diversification
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
Israeli Airstrike in Yemen Kills Houthi Prime Minister
After the Shock of Defeat, Iranians Yearn for Change
YouTube Altered Content by Artificial Intelligence – Without Permission
Iran Faces Escalating Water Crisis as Protests Spread
More Than Half a Million Evacuated as Typhoon Kajiki Heads for Vietnam
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
AI in Policing: Draft One Helps Speed Up Reports but Raises Legal and Ethical Concerns
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
×