EMEA > Compliance Markets & Taxes > EU top court strikes down Hungary CO2 tax on free ETS allowances

EU top court strikes down Hungary CO2 tax on free ETS allowances

Published 16:56 on April 16, 2026 / Last updated at 16:56 on April 16, 2026 / / EMEA (Compliance Markets & Taxes, Europe), Net Zero Transition (Litigation)

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The EU’s top court ruled on Thursday that Hungary cannot impose a tax on CO2 emissions from installations receiving significant free EU ETS allowances where that measure neutralises the value of those permits and undermines the bloc’s carbon market design.
The EU’s top court ruled on Thursday that Hungary cannot impose a tax on CO2 emissions from installations receiving significant free EU ETS allowances where that measure neutralises the value of those permits and undermines the bloc’s carbon market design.


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