U.S. Energy Secretary and Qatari Energy Minister Ship Letter to EU Relating to Proposed Corporate Local weather Rules

WASHINGTON—U.S. Department of Energy (DOE) Secretary Chris Wright and Qatari Minister of State for Energy Affairs Saad Sherida Al-Kaabi despatched a letter right now to the Heads of State of European Union (EU) Member States, concerning the European Union’s proposed Corporate Sustainability Due Diligence Directive (CSDDD).

Click right here to learn the letter or see the total textual content beneath.

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 right now at a pivotal second for the EU’s vitality safety and financial competitiveness. As two of its most trusted companions and the world’s main LNG producers, we reaffirm our deep dedication to supporting the EU’s prosperity and stability.

We write on this spirit, united in our views, to specific our deep concern over the continued lack of motion to deal with the universally acknowledged, critical, and legit considerations raised by the worldwide enterprise neighborhood concerning the Corporate Sustainability Due Diligence Directive (CSDDD). Particularly its unintended penalties for LNG export competitiveness and the provision of dependable, reasonably priced vitality for EU customers.

Over the previous 12 months, our two nations have engaged in constructive dialogue with representatives from quite a few EU governments concerning the contents of the CSDDD, providing particular suggestions to keep away from the unintended penalties we’ve got beforehand raised. While we recognize the efforts of these Member States which have welcomed dialogue, the broader lack of substantive engagement on these crucial points is deeply regarding, particularly given the far-reaching implications of the laws.

We have constantly and transparently communicated how the CSDDD, as it’s worded right now, poses a big threat to the affordability and reliability of crucial vitality provides for households and companies throughout Europe and an existential menace to the longer term development, competitiveness, and resilience of the EU’s industrial financial system. It is our real perception, as allies and associates of the EU, that the CSDDD will trigger appreciable hurt to the EU and its residents, as it’s going to result in increased vitality and different commodity costs, and have a chilling impact on funding and commerce.

It is of nice concern that none of those points have been correctly addressed within the various texts which were formally adopted thus far by the European Council and the European Parliament, in response to the Omnibus package deal proposed in February 2025 by the European Commission. The Omnibus, whose acknowledged function was to simplify the necessities of the CSDDD to make it workable for each EU and non-EU corporations wishing to speculate and proceed to conduct enterprise within the EU, falls grossly wanting its aspirations.

The EU and its Member States should now act swiftly to deal with these professional considerations, both by repealing the CSDDD in its entirety or eradicating its most economically damaging provisions. In specific, we urge reconsideration of:

• Article 2, on the Directive’s extraterritorial software;
• Article 22, on transition plans for local weather change mitigation;
• Article 27, on penalties;
• Article 29, on civil legal responsibility of corporations.

Together, these provisions pose important challenges and significantly undermine the power of the American, Qatari, and broader worldwide vitality neighborhood to take care of and broaden their partnerships and operations throughout the EU. This comes at a crucial second when our nations and corporations are striving not solely to maintain however to considerably enhance the dependable provide of LNG to the EU according to European strategic aspirations. There is little debate that pure gasoline and LNG will stay a crucial vitality supply and a key a part of the EU’s vitality combine for a lot of many years to return.

Beyond the direct vitality safety dangers, the CSDDD additionally threatens to disrupt commerce and investments throughout practically all of the EU’s companion economies. Its implementation might jeopardize present and future investments, employment, and compliance with latest commerce agreements.

These considerations are broadly shared among the many world enterprise neighborhood; they prolong far past the vitality sector and should not restricted to the United States and Qatar. Prominent European corporations and business associations have likewise voiced critical reservations in regards to the Directive’s implications for the EU’s financial resilience and vitality safety. Indeed, the CEOs of 46 main European corporations just lately known as for the CSDDD’s repeal, emphasizing that such motion would ship 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 option to uphold its dedication to offering residents, industries, and economies with reasonably priced, dependable vitality, stopping additional deindustrialization and preserving the EU’s competitiveness and world relevance. As key allies and main suppliers of LNG and different vitality merchandise to the EU, each the United States and Qatar are deeply invested within the EU’s continued success and stability.

We urge EU leaders to take quick, decisive motion by reopening substantive dialogue together with your world companions, together with the United States and Qatar, and the broader worldwide enterprise neighborhood, to deal with these crucial provisions within the CSDDD.

Such engagement is important to making sure a balanced, pragmatic, and workable method that safeguards the EU’s vitality safety, long-term competitiveness, and the prosperity of its residents.

The United States and Qatar stay steadfast in our dedication to the EU’s continued success, and we stand collectively as keen and constructive companions on this endeavor. As we’ve got constantly conveyed, we’re prepared to help you in guaranteeing that laws such because the CSDDD don’t inadvertently hinder the ambitions of the EU’s folks and industries.

The residents of your Member States rightly anticipate their leaders to confront these challenges with seriousness, accountability, and resolve. We stay prepared to have interaction in constructive dialogue on these and different issues at your comfort.

Yours sincerely,

Chris Wright, United States Secretary of Energy

Saad Sherida Al-Kaabi, Qatari Minister of State for Energy Affairs

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