(Oil Price) – The United States and Qatar have joined forces for a fresh warning to Brussels that its corporate sustainability directive risks LNG imports from two of the world’s biggest exporters at a time when the EU is trying to ban all Russian gas imports.
Per a joint letter cited by the Financial Times, Washington and Doha are concerned that the directive would affect their exports of liquefied, meaning they would not be able to export as much of the commodity to the EU as they did previously.
Qatar has earlier stated it would suspend all LNG exports to the EU if it goes through with the directive, which requires importers into the European Union to provide proof they protect human rights and work on reducing their emissions unless they want to face fines with a sum equal to as much as 5% of their annual global turnover.
“This comes at a critical moment when our countries and companies are striving not only to sustain but to significantly increase the reliable supply of LNG to the EU,” the U.S. and Qatar said in the letter.
“Beyond the direct energy security risks, the CSDDD also threatens to disrupt trade and investments across nearly all the EU’s partner economies. Its implementation could jeopardise existing and future investments, employment, and compliance with recent trade agreements,” the letter also said.
A couple of months ago, European Commission President Ursula von der Leyen made a commitment on behalf of the EU to buy $750 billion worth of U.S. energy commodities in a trade deal criticized massively in Europe. Passing the CSDDD would seriously compromise efforts to fulfil this debatable commitment.
The United States and Qatar together account for about 20% of the European Union’s total natural gas imports. The share is almost equal to Russia’s 19%, which the EU wants to give up by 2027.
By Irina Slav for Oilprice.com
