Qatar Threatens EU LNG Supplies Over Climate Due Diligence Law

Qatar, the world's third-largest exporter of liquefied natural gas (LNG), has threatened to cut off gas supplies to the European Union if the EU's Corporate Sustainability Due Diligence Directive (CSDDD) is not amended. The directive requires large companies to address human rights and environmental issues in their supply chains, including strict climate protection provisions that Qatar argues conflict with its domestic laws and sovereign rights under the Paris Agreement. Qatar's Energy Minister Saad al-Kaabi warned in letters to the Belgian government and other EU member states that without further changes, QatarEnergy may redirect LNG exports to markets outside the EU that offer a more stable and business-friendly environment. The European Commission has acknowledged receiving Qatar’s letters and noted ongoing negotiations among EU lawmakers and countries to simplify the directive, including proposals to delay implementation and reduce audit requirements. However, Qatar contends that the EU's current proposed amendments do not sufficiently address its concerns, particularly regarding heavy fines and sanctions linked to climate rules. This dispute poses a significant risk to Europe's LNG supply, which has been crucial since Russia's invasion of Ukraine.