The Gulf Cooperation Council (GCC), a council representing energy-producing countries in the Middle East, voiced their strong opposition to onerous European Union regulations, stating that these regulations may force GCC companies to withdraw from the European Union market.
The GCC represents energy-rich countries such as the United Arab Emirates (UAE), Bahrain, Saudi Arabia, Oman, Qatar, and Kuwait. The GCC countries voiced their “deep concern” over two EU directives, the Corporate Sustainability Due Diligence Directive (CSDDD) and the Corporate Sustainability Reporting Directive.
“It would further oblige these companies to comply with legislation related to human rights and environment, and to submit climate plans that go beyond the obligations established under international climate agreements. In addition, companies would be required to report on the sustainability impacts of their operations and would be subject to penalties for non-compliance,” the GCC countries stated.
The American Petroleum Institute (API), which represents American oil and natural gas companies, shared the GCC statement, noting that it could threaten “stable energy supplies — putting global energy-security at risk:”
House Energy and Commerce Committee Chairman Brett Guthrie (R-KY), in a statement to Breitbart News, warned that these regulations could hamper Europe’s ability to obtain reliable American energy.
“Red tape and burdensome regulations have hurt Europe’s ability to take advantage of reliable and affordable American energy. By taking a commonsense approach that leverages American LNG, Europe can prevent blackouts while ensuring their energy sources don’t rely on supplies from adversarial nations,” Guthrie told Breitbart News in a written statement.
Although the EU did vote recently to scale back some of the requirements, the GCC said in its statement that:
… these changes still fall short of the GCC States’ expectations and continue to constitute a source of harm and a potential source of wide-ranging risks to the interests of GCC companies operating in the European market. This is particularly concerning in light of the new regulatory environment the legislation would establish, which could negatively affect the competitiveness and continuity of those companies’ operations.
The GCC stated that the requirements through these regulations may force GCC companies to withdraw from the European market:
The GCC States concluded that GCC companies that may be subject to this legislation, which are operating in line with global best practices, will assess the risks and impacts they could face should the legislation be adopted. Such assessments may ultimately lead these companies to withdraw from the European market and seek alternative markets.
“The GCC States expressed their hope that the friendly EU countries will consider cancelling the proposed directive or limiting its application to within the EU, so that it does not have cross-border effects, should the EU deem it necessary to proceed with it,” the GCC added.
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