Doha: HE Minister of State for Energy Affairs Eng. Saad bin Sherida Al Kaabi expressed concerns over the feasibility of implementing the European Union’s Corporate Sustainability Due Diligence Directive (EU CSDDD) for global energy and industrial companies operating within the European market. This statement was made during a press conference following the 27th Ministerial Meeting of the Gas Exporting Countries Forum (GECF). His Excellency emphasized that circumventing the directive could help the EU avert detrimental impacts on its investments and energy security.
According to Qatar News Agency, the EU CSDDD mandates a 5 percent penalty for international companies in the European market that do not comply with the directive. One of the stipulations of this directive is maintaining the current carbon emissions rate, a requirement that clashes with Qatar’s ambitions to expand its liquefied natural gas and urea production significantly. Qatar aims to increase its LNG production from 77 million to 160 million tons annually, including ventures like the Golden Pass project in the United States, and its urea production from 6 million to 12 million tons annually. His Excellency indicated that adhering to current emissions levels while pursuing these expansion projects is unfeasible.
His Excellency further explained that entities embarking on development projects are typically unable to maintain their current emissions, particularly in the oil and gas sectors, as well as in factories. As such, these entities are deemed non-compliant even prior to the enforcement of the law. He highlighted that this regulation could deter many international companies from operating in Europe.
GECF Secretary-General Mohamed Hamal also commented on the situation, noting the EU’s attempt to extend its regulatory reach beyond its borders, which he warned could have serious consequences. He advocated for dialogue and cooperation to prevent potential negative impacts on the energy market, especially concerning the stability of the gas market.
Hamal also mentioned that GECF members adhere to specific rules for reducing methane emissions, investing in carbon storage and capture, and minimizing their carbon footprint. However, he emphasized that these efforts are undertaken in a sovereign manner, reflecting national circumstances and capabilities comprehensively, while also considering risk mitigation measures affecting other nations.