ENB Pub Note: Check out my article this morning EU’s Climate Rules Have Caused a Response from the US and Qatar, Issuing Trade Threats. Hat tip to the Nemeth Report for sending this announcement below.
Secretary Wright and Minister Al-Kaabi sent a letter today to the Heads of State of European Union Member States, regarding the European Union’s proposed Corporate Sustainability Due Diligence Directive.
WASHINGTON—U.S. Department of Energy (DOE) Secretary Chris Wright and Qatari Minister of State for Energy Affairs Saad Sherida Al-Kaabi sent a letter today to the Heads of State of European Union (EU) Member States, regarding the European Union’s proposed Corporate Sustainability Due Diligence Directive (CSDDD).
Click here to read the letter or see the full text below.
An Open Letter to the Heads of State of European Union (EU) Member States
Dear Leaders of European Union Member States,
We write to you today at a pivotal moment for the EU’s energy security and economic competitiveness. As two of its most trusted partners and the world’s leading LNG producers, we reaffirm our deep commitment to supporting the EU’s prosperity and stability.
We write in this spirit, united in our views, to express our deep concern over the continued lack of action to address the universally acknowledged, serious, and legitimate concerns raised by the global business community regarding the Corporate Sustainability Due Diligence Directive (CSDDD). Particularly its unintended consequences for LNG export competitiveness and the availability of reliable, affordable energy for EU consumers.
Over the past year, our two countries have engaged in constructive dialogue with representatives from numerous EU governments regarding the contents of the CSDDD, offering specific recommendations to avoid the unintended consequences we have previously raised. While we appreciate the efforts of those Member States that have welcomed dialogue, the broader lack of substantive engagement on these critical issues is deeply concerning, especially given the far-reaching implications of the legislation.
We have consistently and transparently communicated how the CSDDD, as it is worded today, poses a significant risk to the affordability and reliability of critical energy supplies for households and businesses across Europe and an existential threat to the future growth, competitiveness, and resilience of the EU’s industrial economy. It is our genuine belief, as allies and friends of the EU, that the CSDDD will cause considerable harm to the EU and its citizens, as it will lead to higher energy and other commodity prices, and have a chilling effect on investment and trade.
It is of great concern that none of these issues have been properly addressed in the alternative texts that have been formally adopted to date by the European Council and the European Parliament, in response to the Omnibus package proposed in February 2025 by the European Commission. The Omnibus, whose stated purpose was to simplify the requirements of the CSDDD to make it workable for both EU and non-EU companies wishing to invest and continue to conduct business in the EU, falls grossly short of its aspirations.
The EU and its Member States must now act swiftly to address these legitimate concerns, either by repealing the CSDDD in its entirety or removing its most economically damaging provisions. In particular, we urge reconsideration of:
- Article 2, on the Directive’s extraterritorial application;
- Article 22, on transition plans for climate change mitigation;
- Article 27, on penalties;
- Article 29, on civil liability of companies.
Together, these provisions pose significant challenges and seriously undermine the ability of the American, Qatari, and broader international energy community to maintain and expand their partnerships and operations within the EU. 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 in line with European strategic aspirations. There is little debate that natural gas and LNG will remain a critical energy source and a key part of the EU’s energy mix for many decades to come.
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 jeopardize existing and future investments, employment, and compliance with recent trade agreements.
These concerns are widely shared among the global business community; they extend far beyond the energy sector and are not limited to the United States and Qatar. Prominent European companies and industry associations have likewise voiced serious reservations about the Directive’s implications for the EU’s economic resilience and energy security. Indeed, the CEOs of 46 major European companies recently called for the CSDDD’s repeal, emphasizing that such action would send a “clear and symbolic signal to European and international companies that governments and the Commission are truly committed to restoring competitiveness in Europe.”
The EU now faces a defining choice to uphold its commitment to providing citizens, industries, and economies with affordable, reliable energy, preventing further deindustrialization and preserving the EU’s competitiveness and global relevance. As key allies and major suppliers of LNG and other energy products to the EU, both the United States and Qatar are deeply invested in the EU’s continued success and stability.
We urge EU leaders to take immediate, decisive action by reopening substantive dialogue with your global partners, including the United States and Qatar, and the wider international business community, to address these critical provisions in the CSDDD.
Such engagement is essential to ensuring a balanced, pragmatic, and workable approach that safeguards the EU’s energy security, long-term competitiveness, and the prosperity of its citizens.
The United States and Qatar remain steadfast in our commitment to the EU’s continued success, and we stand together as willing and constructive partners in this endeavor. As we have consistently conveyed, we are ready to assist you in ensuring that regulations such as the CSDDD do not inadvertently hinder the ambitions of the EU’s people and industries.
The citizens of your Member States rightly expect their leaders to confront these challenges with seriousness, responsibility, and resolve. We remain ready to engage in constructive dialogue on these and other matters at your convenience.
Yours sincerely,
Chris Wright, United States Secretary of Energy
Saad Sherida Al-Kaabi, Qatari Minister of State for Energy Affairs
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