QatarEnergy and Exxon lobby EU to loosen climate law or exit Europe

Executives from ExxonMobil and QatarEnergy have issued strong warnings about Europe’s new sustainability law, stressing that unless the EU backs down, they may leave the region altogether.

These statements come as both companies remain vital suppliers of liquefied natural gas to Europe, especially since the continent cut Russian imports in recent years.

At the Abu Dhabi International Petroleum Exhibition, ExxonMobil CEO Darren Woods and QatarEnergy CEO Saad al-Kaabi argued that the EU's Corporate Sustainability Due Diligence Directive, if passed in its strict form, could be disastrous for energy firms and potentially destabilize Europe’s energy market.

Why are ExxonMobil and QatarEnergy threatening an EU exit?

Europe has become increasingly reliant on global energy suppliers since reducing its reliance on Russian gas, turning to ExxonMobil and QatarEnergy for a significant share of its liquefied natural gas imports.

Executives from both companies assert that the EU’s new sustainability law is so demanding that it could force them to reconsider their operations in the region altogether, potentially leading to a business exit that would disrupt market flows.

Darren Woods of ExxonMobil expressed concerns about the law's practical feasibility, noting that if Europe requires environmental compliance beyond what’s realistically achievable, companies may be left with no choice but to reallocate resources elsewhere.

QatarEnergy’s Kaabi has issued similar warnings, noting that contingency plans are already on the table and that their threats are not mere negotiation tactics.

Did you know?
Qatar supplied more than 14 percent of the EU’s LNG imports after Russia’s 2022 supply cut, making it one of Europe’s top energy partners.

What does the EU sustainability law require from companies?

The proposed Corporate Sustainability Due Diligence Directive asks all companies operating in the EU to fully address environmental and human rights risks across entire supply chains.

It further demands that climate transition plans must be aligned with the Paris Agreement goal of keeping global warming below 1.5°C, which is technically complex, particularly for energy companies with worldwide operations.

The law’s critical feature is its extra-territorial scope. Firms like ExxonMobil and QatarEnergy say they would face compliance demands not only for their European businesses but also for global operations with no direct connection to Europe, ramping up the regulatory burden and exposing them to substantial penalties.

How could Europe’s energy supply be impacted?

QatarEnergy and ExxonMobil together account for a large share of Europe’s LNG supply, especially after Russia's imports were curtailed.

ExxonMobil invested more than 20 billion euros in European energy infrastructure over the past decade, while Qatar supplies between 12 and 14 percent of the bloc’s total LNG imports.

A withdrawal by either company would present a significant risk to Europe’s energy security, potentially increasing costs, limiting alternatives, and exposing households and industries to volatility.

The threat of supply disruptions underscores how closely climate policy and market stability are intertwined.

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What are executives saying about the technical challenges?

ExxonMobil has described the directive as an overreach. Darren Woods stated that it would require not only a climate transition plan for the company’s European operations, but for every business activity around the globe.

He characterized full compliance with the 1.5°C objective across worldwide operations as technically impossible.

Saad al-Kaabi reiterated that meeting net-zero targets is simply not feasible for QatarEnergy under the proposed law.

Both executives maintain that their companies want to keep supplying Europe, but only if requirements become reasonable, enabling them to compete fairly without risking massive fines or operational shutdowns.

Is a compromise possible on EU climate policy?

QatarEnergy and ExxonMobil have joined governments from Qatar and the United States in lobbying for changes, urging the EU to reconsider aspects of its directive that could hurt energy relationships and market stability.

The European Parliament says further negotiations are on the table, and final changes may be ironed out by year-end.

EU officials suggest that ongoing dialogue will be critical, with some policymakers indicating there is scope for adjustment if current measures prove too disruptive.

Both energy giants say their goal is not to abandon the European market but to ensure realistic, competitive conditions for all parties.

Looking ahead, Europe’s energy dynamics may hinge on how the bloc balances climate ambition with practical realities.

If a compromise is reached, vital suppliers could remain engaged. Without one, Europe risks major supply shocks and energy market unpredictability.