Most Americans have probably never heard of the European Union’s (EU) recently passed Corporate Sustainability Due Diligence Directive (CSDDD). According to the EU, the “aim” of the CSDDD “is to foster sustainable and responsible corporate behaviour in companies’ operations and across their global value chains. The new rules will ensure that companies in scope identify and address adverse human rights and environmental impacts of their actions inside and outside Europe.” //
As my colleagues Justin Haskins and Jack McPherrin note in a recent Heartland Institute Policy Study outlining the CSDDD:
It is not hyperbolic to say the CSDDD is one of the most economically restrictive and nakedly authoritarian laws in the history of western democratic civilization. The directive attempts to globally institutionalize sweeping ESG objectives by mandating practices for large companies doing business in the European Union, regardless of whether those companies are headquartered in the EU. Even worse, the CSDDD forces those companies to impose the same standards on many of the businesses operating within their global supply chains— fundamentally transforming all social and economic activity around the world. It is one of the gravest threats to freedom that Americans face today.
Under the CSDDD, all U.S. businesses, from multinational corporations to small family farms, would have to adhere to the EU’s environmental regulations that prioritize the mass adoption of expensive and unreliable so-called green energy while restricting the production of abundant, affordable, and reliable fossil fuel energy.
In essence, the CSDDD “is a transition plan for climate change mitigation aligned with the 2050 climate neutrality objective of the Paris Agreement as well as intermediate targets under the European Climate Law,” says the EU. //
ExxonMobil CEO Darren Woods explained on Fox News’ Special Report recently that the EU’s CSDDD represents a non-tariff trade barrier that Trump is intent on eliminating as his team negotiates with EU officials.
Woods also recommended that Congress draft legislation that deems the EU’s CSDDD irrelevant to U.S. businesses. I highly suspect that Trump would sign such a bill with gusto.
