Qatar will cease gas shipments to the European Union if member states enforce penalties under the Corporate Sustainability Due Diligence Directive, according to HE Eng. Saad bin Sherida Al Kaabi, Qatar’s Minister of State for Energy Affairs and President and CEO of QatarEnergy.
The directive, adopted earlier this year, requires large companies operating in the EU to ensure their supply chains are free from forced labour and environmental damage. Non-compliance could result in fines of up to 5% of a company’s global turnover.
“If the case is that I lose 5% of my generated revenue by going to Europe, I will not go to Europe. I’m not bluffing,” Al Kaabi told the Financial Times. “Five percent of generated revenue of QatarEnergy means 5% of generated revenue of the Qatar State. This is the people’s money, so I cannot lose that kind of money – and nobody would accept losing that kind of money.”
The Corporate Sustainability Due Diligence Directive is part of the EU’s broader effort to achieve net-zero emissions by 2050. However, the rules have faced criticism from companies within and outside the EU, citing excessive compliance costs and competitive disadvantages.
