The U.S. has demanded that the European Union completely repeal, or substantially cut back, its corporate sustainability due diligence directive (CSDDD), which sets rules on climate and human rights, in order to allow greater imports of liquefied natural gas (LNG). The Guardian reports the pressure comes as the Trump administration approved a controversial gas export hub along the Gulf of Mexico coast.
In a letter sent jointly by the U.S. and Qatar — two of the three largest LNG exporters in the world — the countries warned the EU that its new rules would hinder imports of gas from countries such as theirs, and pose an “existential threat” to European economies.
According to Reuters, the European Parliament agreed on October 22 to consider further changes to the EU's corporate sustainability rules, as the U.S. and Qatar stepped up pressure on Brussels to weaken the law.
The CSDDD, which is set to be debated by EU legislators in the coming week, requires gas exporters to the 27-country bloc to show they protect human rights and are cutting emission that heat the planet, or risk hefty fines.
“Its implementation could jeopardize existing and future investments, employment, and compliance with recent trade agreements,” the letter states. “There is little debate that natural gas and LNG will remain a critical energy source and a key part of the EU’s energy mix for many decades.”
The Guardian says the letter is the latest sign of the administration of Donald Trump taking aim at countries’ climate law, in a push to not only boost the use of fossil fuels on U.S. soil but also ensure the world remains reliant on them.
Although the EU recently agreed to purchase $750 billion of U.S. oil and gas by 2028, in order to replace fuels coming from Russia, the viability of this deal has been questioned. During a trip to Europe, Chris Wright, the U.S. energy secretary, doubled down on U.S. hostility to climate action, calling net zero policies a “colossal train wreck” and the Paris climate agreement “silly.”
On October 22, Trump’s energy department announced it had provided a final export approval for Venture Global’s CP2 project, a vast planned LNG terminal on Louisiana’s coast. Once built, the terminal could export as much as 3.96 billion cubic feet of LNG per day overseas.
