On October 22, 2025, the US Department of Energy joined Qatar in an open letter criticizing the EU’s Corporate Sustainability Due Diligence Directive, known as the CSDDD. Their argument: the law threatens energy affordability, discourages investment, and could disrupt the flow of American liquefied natural gas to a continent that desperately needs it.

What the CSDDD actually requires

The CSDDD requires companies operating in or selling into the EU to identify, prevent, and address adverse human rights and environmental impacts throughout their operations. That includes everything from raw material sourcing to final delivery.

The directive also imposes civil liability provisions, meaning companies can face legal consequences for failing to meet these standards. Climate transition plans are another requirement, forcing firms to map out how they’ll align with environmental targets.

The trade math gets ugly fast