Qatar has issued a warning to the European Union, stating that it will halt crucial gas shipments if EU member states strictly enforce new legislation that penalizes companies failing to meet sustainability and labor rights standards. The legislation, known as the corporate due diligence directive, requires EU countries to impose fines on companies exceeding set limits for carbon emissions and violating human and labor rights. Qatar's energy minister, Saad al-Kaabi, expressed that the potential penalties, which could reach 5% of a company's annual global revenue, would be economically unacceptable.
Qatar has threatened to stop vital gas shipments to the EU if member states strictly enforce new legislation that will penalise companies which fail to meet set criteria on carbon emissions, human and labour rights. Qatar i energy minister Saad al-Kaabi told the Financial Times that if any EU state imposed non-compliance penalties on a scale referenced in the corporate due diligence directive Doha would stop exporting its liquefied natural gas to the bloc.
The law requires EU countries to introduce powers to impose fines for non-compliance with an upper limit of at least 5 per cent of the company’s annual global revenue. “If the case is that I lose 5 per cent of my generated revenue by going to Europe, I will not go to Europe . . . I’m not bluffing,” Kaabi said. “Five per cent of generated revenue of QatarEnergy means 5 per cent 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 EU adopted the corporate due diligence rules in May this year. They are part of a broader set of reporting requirements aimed at aligning companies with the EU’s ambitious goal of reaching net zero emissions by 2050. But the directive has prompted a widespread backlash from companies, both within and outside the EU, who have complained that the rules are too onerous and put them at a competitive disadvantage. Cefic, the chemical industry body, said the due diligence rules would “create significant litigation risks” and should be thoroughly assessed “to identify and address areas for simplification and burden reduction so as to . . . limit the liability exposure.” Non-EU companies will be liable for penalties under the directive if they earn more than €450mn in net turnover in the blo
QATAR EU GAS CORPORATE REGULATION CARBON EMISSIONS
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