From Climate Change to Fiscal Innovation: Transforming the
                              EU Budget for Sustainability with CBAM, Climate Tax and ETS











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            Number: MA/25/F4/0/014

            Flagship: 4 - Environmental transitions
            Faculty: PF
            Project leader: Večeř, Miroslava

            The project addresses a pressing question at the intersection of climate policy, EU law, a
            innovation: can the European Union introduce a climate-related tax or levy as part of its 
            to support sustainability goals? Building on the existing legal framework, the research ex

            secondary legislation could be enacted to impose fiscal measures targeting climate-damagin
            beyond the current Emissions Trading System (ETS) and Carbon Border Adjustment Mechanism (

            these mechanisms regulate emissions, they are not taxes in the strict EU legal sense. The 
            focuses on the scope and interpretation of Article 311 TFEU, its relationship to tax harmo
            whether the Own Resources Decision constitutes primary or secondary law.


            The research further explores procedural and political dimensions, including parliamentary
            requirements, the potential use of enhanced cooperation under Articles 326 et seq. TFEU, a

            compatibility of an EU-level climate tax with existing national measures. It will assess t
            such a tax with other fiscal instruments, including VAT, ETS, and CBAM, as well as relevan
            public international law. Comparative analysis of national climate taxes will be used to e

            overlaps, risks of double taxation, and opportunities for alignment with EU climate financ
            The integration of Environmental, Social, and Governance (ESG) and Corporate Social Respon
            principles will ensure that the proposed framework not only strengthens fiscal capacity bu

            sustainable business practices.

            The project will combine legal analysis with stakeholder engagement, including workshops, 

            consultations, and research stays at partner institutions in Milan and Heidelberg. Outputs
            two peer-reviewed publications indexed in Scopus or Web of Science, offering concrete reco
            climate-oriented Own Resources reform. By bridging climate action with fiscal innovation, 

            to provide a robust legal and policy blueprint for integrating sustainability into the EU 
            so, it will strengthen collaboration between Charles University, the University of Milan, 
            University, and contribute to the EU’s long-term goals of climate neutrality, sustainable 

            economic cohesion.

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