By P Gosselin
Germany’s online Blackout News reports on a brewing showdown: US and Qatar threaten EU LNG supply over new sustainability law
The European Union’s push for stricter environmental standards is now clashing head-on with its need for energy security.
The EU’s two largest Liquefied Natural Gas (LNG) suppliers, the United States and Qatar, have issued a strong warning, threatening to halt critical gas deliveries over the bloc’s proposed Sustainability Act (Nachhaltigkeitsgesetz).
Europe’s Guide to drive out its industry.
The core issue is the EU’s new due diligence legislation. This law is designed to force companies to scrutinize their global supply chains for environmental and human rights violations, and prove how they plan to align their emissions with the Paris Agreement targets by 2050.
It’s the ever more irrelevant Europe’s way of demanding the rest of the world do as it says. Non-compliance could result in severe penalties for companies, potentially up to 5% of global annual turnover. But the rest of the world is t about to take it.
Harsh sustainability directive
Europe’s Corporate Sustainability Due Diligence Directive, CS3D) is a proposed regulation that aims to make companies accountable for their impact on people and the planet. In short, it requires companies 1) to scrutinize their global supply chains to identify, prevent, and mitigate adverse impacts on human rights and the environment, and 2) to show how they will align their emissions with the Paris Agreement climate targets by 2050.
But both Washington and Doha view the regulation as a damaging intrusion into free trade and a risk to Europe’s energy supply. They have warned that the current form of the law could lead to a sensitive loss of energy security for the continent.
Already there’s been a mass exodus of industry out of Germany as political leaders remain stuck in climate protection fantasies.
Ultimatum from Key Energy Partners
Qatar’s Energy Minister, Saad Sherida Al-Kaabi, stated that the national energy giant, QatarEnergy, could simply withdraw from the European market if the legislation is implemented as is, calling the potential fines “unacceptable.” This move would place serious strain on Europe’s energy supplies, especially as the EU seeks to completely phase out Russian gas by 2027.
The US is also not going to put up the meddling and with the threat of fines. The US Energy Secretary warns that the regulation could endanger the 2020 transatlantic energy partnership and “impair investments” across partner nations, potentially jeopardizing the supply of American LNG.
Europe will likely stonewall, buy time
The EU now faces a high-stakes balancing act. The proposed law is crucial for upholding the bloc’s global climate goals, but enforcing it would trigger a serious energy crisis and trade conflict with its most vital energy partners. Pressure is mounting within Europe, with key leaders reportedly calling for a delay to the law’s introduction to safeguard fragile energy security. The coming weeks will determine whether Brussels can navigate this complex situation without sacrificing either its climate agenda or its energy stability.
Europe’s strategy will likely involve biding its time while hoping Democrats regain power over the next election cycles.
Article at Blackout News.
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