EU to provide support to countries affected by border carbon tax

The EU’s Carbon Border Adjustment Mechanism (CBAM) is set to start charging for the carbon emissions of imported goods such as steel and cement from next year. Trading partners including Brazil, India, and South Africa have criticized the measure, arguing that it unfairly burdens developing economies.

The European Commission said in its climate and energy diplomacy strategy, published on Thursday, that it plans to support these countries through the “Global Europe” program. The initiative is part of the EU budget for 2028–2034 and proposes a 200-billion-euro international development fund.

The Commission noted that CBAM will be implemented gradually and stated, “The contribution of Global Europe will be maximized to meet the decarbonization and adaptation needs of non-EU developing countries.” The announcement also highlighted that the move would help alleviate concerns about EU legislation, strengthen partnerships, and support broader regulatory reforms.

The fund will allow these countries to invest in reducing industrial emissions and transitioning to clean energy, which in turn could indirectly lower their financial burden under the EU carbon border tax.

EU Energy Commissioner Dan Jorgensen said that despite concerns from trading partners, the bloc will not roll back its climate legislation. He emphasized that Brussels’ focus is on clean industrial investments that benefit both sides, such as the production of renewable energy and hydrogen in Africa.

“These countries will be fully supported, both in terms of potential funding arrangements and technical assistance,” Jorgensen told Reuters. “We will not backtrack on the green transition, but we are obviously listening to the concerns of our partners.”

The EU document also outlines plans to involve the private sector more in energy diplomacy and to prioritize clean technology investments. These steps are seen as part of Europe’s strategic effort to counter China’s dominance in the production of green technologies such as batteries and solar panels.

Source: Reuters