The Gulf Cooperation Council (GCC) — which represents oil‑ and natural gas‑producing nations including the United Arab Emirates, Saudi Arabia, Qatar, Oman, Kuwait, and Bahrain — issued a strong warning to European regulators this week. The council said newly proposed European Union regulations could drive GCC energy companies out of the EU market entirely.
The concern centers on the Corporate Sustainability Due Diligence Directive (CSDDD) and the Corporate Sustainability Reporting Directive (CSRD). The directives would require companies doing business in Europe to meet stringent new standards for human‑rights compliance, environmental impact, and climate‑related disclosures — burdening many foreign firms operating in the energy sector. Under these rules, companies would need to submit detailed climate plans that exceed existing international obligations, report all sustainability impacts, and face penalties if they fail to comply.
GCC officials argued these demands would erode the competitiveness and reliability of their member companies. They warned that compliance burdens could force some firms to withdraw from the European market and shift operations elsewhere. The council urged European governments to rethink or limit the scope of the rules, especially where they impact firms based outside the EU.
The American Petroleum Institute (API) echoed the same concerns, calling the regulations a threat to global energy security. API suggested the impact could ripple beyond Europe, affecting supply and prices worldwide.
In the United States, lawmakers sounded alarms. Brett Guthrie (R‑KY), chairman of the House Energy and Commerce Committee, warned that such burdensome regulations have already constrained Europe’s ability to import reliable American energy. He argued EU governments should instead pursue practical policies that leverage American liquefied natural gas (LNG) to prevent blackouts and reduce dependence on hostile foreign regimes.
Although European officials recently scaled back some proposed requirements, the GCC maintains the changes remain insufficient. The council said many firms will still face compliance costs that make continued participation in the EU market unwise. Ultimately, said the GCC, new rules of this type risk shrinking investment, undermining energy stability, and driving global energy supply away from the West.
