Qatar's Energy Minister Saad al-Kaabi has warned that a new European Union (EU) law on corporate sustainability responsibilities could potentially affect energy trade ties between Doha and the bloc.
He was referring to the Corporate Sustainability Due Diligence Directive (CSDDD) which requires large EU companies to assess and address human rights and environmental risks in their supply chains.
The law imposes fines of up to 5% of global revenue for companies that fail to comply, something energy exporters like Qatar find burdensome.
Al-Kaabi said the overly strict requirements could make it difficult for Qatari state-owned companies to maintain operations in the European market, including in liquefied natural gas (LNG) exports.
He stressed that his party has been in talks with the European Commission for the past year, but no satisfactory solution has been reached.
Qatar is now one of the main suppliers of LNG to Europe, especially after the energy crisis caused by the Russia-Ukraine war.
However, if the law continues without changes, Qatar may re-evaluate its investments and long-term contracts with European energy companies.
Al-Kaabi stressed that the EU needs to reconsider its approach so that sustainability policies do not undermine the stability of energy supplies and international trade relations.
