The EU corporate sustainability due diligence directive: implications and the Qatari case study

Abstract

This article investigates the legal, geopolitical, and economic ramifications of the European Union’s Corporate Sustainability Due Diligence Directive (CSDDD) for external energy providers, using Qatar as a strategic case study. The directive, enacted in 2024, marks a watershed moment in EU regulatory extraterritoriality by placing obligatory human rights and environmental due diligence responsibilities on non-EU corporations in EU supply chains. Qatar, a significant exporter of liquefied natural gas (LNG) to Europe, has expressed sovereignty and compliance concerns, warning of potential supply disruptions if penalized under the directive. This article looks at the CSDDD’s legal basis, Qatar’s regulatory structure, and the EU’s overall energy security implications. It uses a comparative legal methodology to assess actual and possible responses from other energy suppliers to the EU. This article makes policy proposals to combine regulatory ambition with market realities and discusses potential paths for combining sustainability enforcement and international energy diplomacy.