【By Bear Chao Ran, Observers Network】According to a letter obtained by the Financial Times on October 22 local time, U.S. Energy Secretary Chris Wright and Qatari Minister of State for Energy Affairs Saad al-Kaabi jointly wrote to warn the European Union that the EU's Corporate Sustainability Due Diligence Directive (CSDDD) poses a "existential threat" to the growth, competitiveness, and resilience of the European economy. If not withdrawn, it will harm their trade, investment, and energy supply.

"This situation occurs at a critical moment, as our countries and companies are not only striving to maintain but also significantly increasing the reliable supply of liquefied natural gas (LNG) to the EU." The U.S. and Qatar stated in the letter that EU legislators are expected to begin discussing these rules on October 24 local time, which could harm their LNG export business to the EU. Since the outbreak of the Russia-Ukraine conflict in 2022, LNG has become a lifeline for the EU.

The letter said that this EU regulation could also harm the latest trade agreement reached between the EU and the U.S. in July, which requires EU member states to purchase $75 billion worth of U.S. energy products by the end of 2028.

"In addition to direct energy security risks, the CSDDD also threatens trade and investment with almost all EU partner economies. Its implementation may jeopardize existing and future investments, jobs, and the fulfillment of recent trade agreements."

The Financial Times believes that the intervention by the U.S. and Qatar marks the emergence of potential "major rifts" between two global fossil fuel producers and the EU, which has been trying to accelerate the transition to cleaner energy.

On October 22, 2025, at the Houston Bayport container terminal in Houston, Texas, USA, an LNG-powered ship is docked. Visual China

Currently, about 16% of the EU's natural gas comes from the U.S., and 4% from Qatar. On October 20 local time, EU energy ministers agreed to gradually phase out Russian gas imports, which still account for 19%, by the end of 2027, making the EU urgently seek alternative sources.

The CSDDD is planned to be implemented in phases starting in 2027, allowing EU member states to impose fines of up to 5% of a company's global turnover on companies that cause environmental or human rights damage in their supply chains.

EU member states and the European Parliament are expected to start negotiations on potential revisions of the regulation later this week. Under the current version, the regulation would apply to non-EU companies with a net turnover of over 450 million euros within the EU.

This negotiation has triggered a wave of lobbying from industry and governments. The U.S. side believes that the extraterritorial effect of this law could expose its companies to litigation risks.

President Trump once threatened to impose tariffs on countries accused by his government of setting so-called "non-tariff trade barriers." In addition, he has repeatedly criticized climate change policies and ordered the suspension of the Foreign Corrupt Practices Act (FCPA) in February of this year, which prohibits Americans from bribing foreign government officials.

Last month, U.S. Energy Secretary Wright told the Financial Times that the EU's climate regulations could undermine trade relations between the U.S. and the EU. Last week, Qatari Minister of State for Energy Affairs Saad al-Kaabi said in an interview with Reuters that if the EU does not further revise its sustainability rules, his company, QatarEnergy, would be unable to operate in Europe.

In fact, some European country leaders, including German Chancellor Merkel and French President Macron, have also called for putting the CSDDD on hold.

On the other hand, U.S. oil and gas companies oppose the CSDDD's requirement for companies to provide plans to cut greenhouse gas emissions and comply with the Paris Climate Agreement.

In their joint letter, Wright and Kaabi urged the EU and its member states to take immediate action to address their "reasonable concerns" about the directive, including its extraterritoriality, penalty mechanisms, civil liability, and energy transition plans.

The letter stated: "We urge EU leaders to take decisive action immediately and engage in substantive dialogue with global partners, including the U.S. and Qatar... to address key provisions in the CSDDD."

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