EU Parliament Reopens Debate on Corporate Sustainability Law Amid U.S. and Qatar Pressure
BRUSSELS, Oct 22 — The European Parliament has voted to reopen negotiations on the European Union’s corporate sustainability due diligence law (CSDDD), following mounting pressure from the United States and Qatar, who warned that the proposed rules could disrupt liquefied natural gas (LNG) trade with Europe.
The move marks a significant setback for Brussels’ plan to finalize the legislation by the end of the year. The law is a key pillar of the EU’s broader effort to link trade and environmental responsibility, requiring companies operating in the bloc to identify and address human rights and environmental abuses in their global supply chains—or face fines of up to 5% of global turnover.
U.S. and Qatar Warn of Energy Supply Risks
In an open letter to EU leaders, Qatari Energy Minister Saad al-Kaabi and U.S. Energy Secretary Chris Wright said the legislation “poses a significant risk to the affordability and reliability of critical energy supplies for households and businesses across Europe” and could undermine the competitiveness of Europe’s industrial base.
The letter urged Brussels to either repeal or significantly amend the law, including removing its application to non-EU companies and eliminating penalties for non-compliance. Al-Kaabi warned that without further revisions, Qatar might be unable to continue LNG trade with Europe.
The warning carries weight: the U.S. and Qatar are Europe’s largest LNG suppliers, together accounting for the bulk of imports that have replaced Russian gas since 2022. Last year, the U.S. supplied 45% of the EU’s total LNG imports.
Divisions Within the EU
The European Commission confirmed it is addressing U.S. concerns during ongoing transatlantic trade discussions, but denied making any concessions. “We have not committed to change the CSDDD or grant U.S. companies more favourable treatment under any EU regulation,” a Commission spokesperson said.
Within Europe, the CSDDD has become a flashpoint. Germany and France have called for the law to be scrapped, citing concerns over competitiveness and regulatory burden, while Spain and several Nordic countries are urging the bloc to hold its line on sustainability and human rights standards.
The European Parliament had previously reached a provisional agreement on a version of the law that exempted more small and medium-sized companies, but Wednesday’s vote—driven by an unlikely coalition of far-right and Green lawmakers—has reopened the debate. The far-right bloc seeks to further dilute the rules, while Greens want to strengthen them.
Business and Political Pushback
Major corporations, including ExxonMobil, have demanded that the EU withdraw the directive entirely, warning it could drive businesses and investments out of Europe. The European business lobby has echoed those concerns, saying the law risks adding red tape at a time when industries are struggling with high energy costs and economic uncertainty.
Despite the opposition, proponents argue that the directive is essential to uphold Europe’s leadership in sustainable trade, forcing global supply chains to align with environmental and ethical standards.
Next Steps
Negotiators are expected to resume talks in the coming weeks, with the EU still aiming to reach a final compromise by year-end. However, the growing international pressure and internal political divisions have cast doubt on whether that timeline can be met.
