US envoy warns EU sustainability rules could curb American investment

US Ambassador to the European Union Andrew Puzder warned that American companies could reduce operations and investment in Europe because of the cost of complying with EU sustainability requirements, RIA Novosti reported from a Hudson Institute event.

Puzder singled out the Corporate Sustainability Reporting Directive, or CSRD, and the corporate supply-chain due diligence directive, known as CS3D or CSDDD. He said companies weigh compliance costs against the profitability of operating in Europe.

The ambassador said the rules affect suppliers outside the EU, including small American producers without direct links to the European market. In his view, additional regulatory restrictions strengthen incentives to invest elsewhere.

Puzder also linked Europe's high energy costs to its accelerated energy transition. He argued that easing the requirements was necessary to avoid capital outflows.