The Court of Justice of the European Union has ruled that national legislation cannot neutralise the incentive effect of CO2 emission allowances allocated free of charge within the context of the European carbon market, according to a judgment (C 519/24) published on Thursday 16 April.
When a Hungarian court referred the matter to the Court of Justice for a preliminary ruling, it held that the European scheme “establishes a system [...] to promote reductions of greenhouse gas emissions...