If member states choose to strictly enforce the new law, which should penalize organizations that fail to meet set standards for labor and human rights as well as carbon emissions, Qatar has threatened to stop supplying gas to the EU.
Saad al-Kaabi, Qatar’s energy minister, threatened to stop gas shipments if the EU strictly enforces the new Corporate Sustainability Due Diligence Directive, which penalizes environmental damage and forced labor.
However, European Union countries introduce powers to impose fines if requirements are not met, with a maximum limit of 5% of the company’s annual global revenue.
“If I lose 5% of my revenue by going to Europe, I will not go to Europe. I am not bluffing,” Kaabi said in an interview with the Financial Times. “5% of the revenue generated by QatarEnergy means 5% of the revenue generated by the state of Qatar. This is the people’s money, so I cannot afford to lose that kind of money, and nobody would accept losing that kind of money,” Kaabi added.
The European Union adopted rules pertaining to corporate due diligence in May of this year. These rules are part of a set of requirements that has been set in order to achieve its goal of net zero emissions by 2050.
The European Parliament approved new rules requiring companies to account for their negative impact on human rights and the environment, which will apply to EU and non-EU companies with a turnover of more than €450 million.
According to the European Chemical Industry Council (CEFIC), the new regulations should be more thoroughly examined “to identify and address areas for simplification and burden reduction to limit liability exposure” because they would “create significant litigation risks.”
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