The EU’s recent change of course reveals a remarkable shift, as stringent climate regulations are losing weight after massive pressure from the US and Qatar rained down on Brussels. At the heart of the dispute were the ESG rules—European regulations for environmental, social, and governance factors—which were originally intended to create more transparent business models and disclose risks. These very rules came under attack, as international partners viewed them as an obstacle to global trade relations. At the same time, American energy policy pushed for greater freedoms for domestic corporations, while European supply chain obligations burdened international partners. The conflict clearly demonstrated how strongly global economic interests can shape the European agenda. (bloomberg: 14.11.25)
The Turning Point Under Transatlantic and Arab Pressure
The dynamics intensified when US representatives launched a sharp attack on the EU, while at the same time, unambiguous threats emanated from Doha toward Brussels. American authorities called on large corporations to ignore European sustainability guidelines, claiming they violated national sovereignty.
Qatar simultaneously leveraged its own supply strategy to exert political influence, as LNG deliveries play a crucial role in Europe’s energy security. Furthermore, stringent due diligence rules came under scrutiny because they placed a particular burden on multinational companies. Behind the scenes, lobby groups repeatedly emphasized their industry priorities, arguing that high standards jeopardized their markets.
EU scraps regulations – a signal of concessions
In Parliament, the decision was ultimately made to relax fundamental provisions, despite previous talk of “simplifications.” The adjustments to climate regulations are particularly drastic, as key obligations are being stripped of their foundation. At the same time, stringent ESG rules, originally considered a pioneering project, are being weakened. European energy policy is also adapting to the new environment, as international supply relationships are given top priority. Moreover, supply chain obligations are being significantly weakened, giving large corporations more political leeway. This move significantly strengthens the economic interests brought forward by key partner states.
Power politics determines the realignment
In expert circles, the course correction is seen as a visible admission of geopolitical constraints. Many members of parliament openly emphasize that strict climate targets can hardly withstand pressure from overseas. The dismantling of strict sustainability guidelines reflects the fact that international markets exert more influence than internal ambitions. The EU’s supply strategy is also viewed in a new light, as it increasingly depends on gas partnerships with allied states. In addition, certain due diligence rules are being dropped, which means that non-European companies remain more closely involved diplomatically. The prioritization of industry sectors also illustrates how closely political stability is linked to economic interests.
International Reactions to the Change of Course
The EU’s decision has triggered a global response, with numerous countries closely monitoring developments. Several governments welcome the relaxation of climate regulations because they reduce trade tensions. Others, however, express doubts as to whether weakened ESG rules will actually lead to progress. The restructuring of energy policy is also generating discussion, as it has direct implications for international markets. At the same time, some observers criticize the scaling back of supply chain obligations, arguing that it undermines ambitious standards. Nevertheless, influential trading partners see their own economic interests more clearly represented, which gives them additional negotiating power.