Qatar has issued a warning to the EU, threatening to redirect its liquefied natural gas (LNG) exports to alternative markets if the EU does not amend its corporate sustainability due diligence directive (CSDDD), reported Reuters, citing a letter from Qatar to the Belgian Government.
The directive, aimed at addressing human rights and environmental issues in supply chains, has been met with concern from Qatar, a key LNG supplier to Europe.
In a letter dated 21 May, addressed to the Belgian Government, Qatari Energy Minister and QatarEnergy CEO Saad al-Kaabi expressed the country's reservations about the CSDDD, particularly the requirement for companies to have a climate change transition plan.
The letter stated: "Put simply, if further changes are not made to CSDDD, the State of Qatar and QatarEnergy will have no choice but to seriously consider alternative markets outside of the EU for our LNG and other products, which offer a more stable and welcoming business environment."
The European Commission (EC) also confirmed receiving a similar letter on 13 May, expressing that the EU is currently negotiating changes to the directive.
The EC has proposed simplifications including delaying the directive's launch to mid-2028 and reducing supply chain checks.
Despite these proposed changes, Qatar remains unsatisfied, highlighting that the EU's amendments have not gone far enough.
The letter underscored Qatar's particular concern over the CSDDD's alignment with the 1.5°C global warming limit set by the Paris Agreement.
The letter added: "Neither the State of Qatar nor QatarEnergy have any plans to achieve net zero in the near future," arguing that the directive undermines national sovereignty over setting contributions to the Paris Agreement goals.
In an annex to the letter, Qatar proposed the removal of the section of CSDDD that mandates climate transition plans.
Qatar, as the world's third-largest exporter of LNG, has been a significant supplier to Europe, especially since Russia's 2022 invasion of Ukraine, providing between 12% and 14% of Europe's LNG. The country has long-term supply contracts with major European energy companies including Shell, TotalEnergies and ENI.
