Emerging Limits on National Carbon Taxes: Reflections on the Advocate General’s Opinion in Nitrogénművek (C-519/24)

In this article, the authors examine the case law of the Court of Justice of the European Union on the limits of national carbon taxation in light of the EU Emissions Trading System. Advocate General Ćapeta has recently delivered her Opinion in Nitrogénművek (C-519/24), which arguably extends the Court’s existing limitation test by placing greater emphasis on protecting the competitiveness of industries exposed to carbon leakage. The authors critically assess this approach and propose alternative arguments based on the Court’s earlier jurisprudence.