EU plans support for countries affected by carbon border levy

By Kate Abnett

BRUSSELS (Reuters) -The European Union will offer development funding to countries affected by the bloc’s carbon border tariff, the European Commission said on Thursday, as it attempts to soothe developing economies’ concerns over the policy.

The EU’s carbon border adjustment mechanism (CBAM) will start imposing fees next year on the CO2 emissions of imported goods including steel and cement. The measure has faced criticism from trading partners including Brazil, South Africa and India, who say it penalises developing economies.

In a document setting out the EU’s priorities on climate and energy diplomacy, published on Thursday, the Commission said it would seek to support countries through “Global Europe”, a proposed 200-billion-euro ($233 billion) programme of internati