The EU will scale back its carbon border levy so that it concentrates on the largest emitters. The result is that only ten per cent of companies will now be covered by the scheme.

If carried over to imported goods, it could mean that many international companies would also be free of the possible tariffs.

The world's first carbon border tariff is due to come into force in 2026, but the changes, first proposed in February would be a significant boost to smaller companies who would otherwise face onerous paperwork and potential levies.

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