Executives from two of the world’s biggest energy suppliers, QatarEnergy and ExxonMobil, have warned that they may halt operations in Europe if the European Union moves ahead with a new climate regulation that they say could make doing business impossible.
The proposed Corporate Sustainability Due Diligence Directive (CSDDD) requires major companies to align their global operations with the Paris Agreement target of limiting temperature rise to 1.5°C, and to address environmental and human rights risks across their supply chains.
Speaking at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), ExxonMobil CEO Darren Woods said the EU law, if implemented as is, would have “disastrous consequences” for global energy trade. Woods argued that the directive would not only affect ExxonMobil’s European operations but also force the company to restructure its worldwide business to comply with Europe’s standards.
Qatar’s Energy Minister and QatarEnergy CEO, Saad al-Kaabi, echoed those concerns, warning that his country could stop supplying liquefied natural gas (LNG) to Europe if the law isn’t revised. Kaabi said the regulation’s requirement for companies to meet net-zero emission goals is unrealistic and could threaten Europe’s energy security.
“Europe needs gas from Qatar, the U.S., and other suppliers,” Kaabi said. “They must look at this issue very seriously.”
The EU’s proposed directive could impose penalties of up to 5% of a company’s global turnover for non-compliance. Both Exxon and QatarEnergy have urged European leaders to reconsider the rule, warning it could disrupt the continent’s energy supply.
ExxonMobil and QatarEnergy are among Europe’s leading LNG suppliers. The U.S. oil giant contributed to about half of Europe’s LNG imports from American producers in 2024, while Qatar provided roughly 12–14% of the bloc’s total LNG supply following Russia’s invasion of Ukraine.
Despite their criticism, both companies said they remain open to working with Europe if the bloc creates a more balanced framework. “We’ve been committed to Europe for years,” Kaabi said. “All we want is a fair and competitive market.”
The European Parliament has agreed to discuss possible amendments to the law, with final approval expected by the end of 2025.
