Hungary: the tax on beneficiaries of free allowances ruled contrary to the EU ETS Directive (CJEU)

The tax on CO2 emission allowances imposed in 2023 by Hungary on operators benefiting from large allocations of greenhouse gas emission allowances free of charge, is deemed contrary to the ETS Directive by the Court of Justice of the EU, in a ruling handed down on 16/04/2026.

Because of the war in Ukraine, Hungary imposed a tax of €36 per tonne...