Germany plans to relieve some companies from new CO2 levy

Germany's government plans to offer companies with high energy consumption relief on a new charge on CO2 emissions, a document shows.

Companies that compete internationally cannot pass the costs of the levy on oil, gas or coal on to customers by raising prices so should be partially reimbursed, said the paper, which Chancellor Angela Merkel's cabinet is due to approve this week.

This would mostly affect firms in the chemical, steel or auto sectors.

Government sources revealed the compensation would amount to several hundred million euros per year.

Starting next year, Germany wants to introduce a CO2 tax on all fossil fuels, which will increase over time.

(Reporting by Markus Wacket Writing by Madeline Chambers Editing by Thomas Escritt)

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