European Union countries can fine companies that do not comply with due diligence laws by up to 5% of revenue.
Qatar has threatened to stop sending gas to the European Union if member states decide to strictly apply the new law that should penalize companies that do not meet the criteria established for human and labor rights, as well as in relation to carbon emissions. .
Saad al-Kaabi, Qatar’s Energy Minister, said that if any European Union country imposes sanctions for non-compliance with established criteria, on a scale referenced in the corporate directive, Doha will stop exporting to the bloc.
The law requires European Union countries to 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 [perder] 5% of my income when going to Europe, I will not go to Europe. I’m not bluffing”said Kaabi in an interview with the newspaper 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 can’t lose that kind of money, and no one would accept losing that kind of money.”he stated.
The corporate due diligence rules were adopted by the European Union in May this year and are part of a set of bloc criteria to achieve the goal of no net emissions by 2050. Several companies, however, claim that the new rules are excessively difficult and puts them at a competitive disadvantage.
Companies that are not part of the European Union will be subject to sanctions if they obtain more than 450 million euros in net volume in the bloc. Cefic (European Chemical Industry Council) said that the new rules “would create significant litigation risks” and should be evaluated more carefully “to identify and address areas of simplification and reduction of burdens in order to limit exposure to liability”.