Hungary Scraps Controversial CO2 Quota Tax In Bid To Ease EU ETS Burden

Hungary’s Parliament has voted to abolish the CO₂ quota tax introduced in 2023, which imposed an additional levy on revenues from the sale of EU emissions allowances. The repeal is part of a broader package of tax and constitutional amendments linked to Hungary’s commitments for accessing EU funding and simplifying its domestic tax framework. Companies that previously paid the levy will be eligible for refunds. The government expects the change to improve economic competitiveness, while EU ETS participants are expected to benefit from lower compliance costs and greater operational predictability. The repeal leaves the EU ETS as Hungary’s principal carbon pricing mechanism.
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