The European Union will offer development funding to countries affected by its upcoming Carbon Border Adjustment Mechanism (CBAM), according to the European Commission. This decision is to address the concerns of developing economies, including Brazil, South Africa, and India, which have criticized the policy.

The CBAM, which begins imposing fees on imported goods' CO2 emissions next year, will not be revoked, says Dan Jørgensen, Commissioner for Energy and Housing.

Instead, the EU will use its EUR 200 billion "Global Europe" development program to help countries reduce emissions and switch to clean energy, potentially lowering their carbon border levy costs. The Commission said this support will ease worries and strengthen partnerships, without compromising the bloc's green transition.