Creating reliable portable devices working in the terahertz (THz) range of electromagnetic spectrum is one of the most formidable tasks of contemporary applied physics, with nanostructures being at the heart of the most promising proposals. This project aims at elaborating a general approach to the description of electromagnetic processes in various carbon-based nanostructures, investigating their electromagnetic properties, and developing a physical basis for utilizing these properties in novel THz nanodevices. The complementary characters of the two key factors inherent in solid-state nanostructures, the spatial confinement of charge carriers and intrinsic nanoscale inhomogeneity of electromagnetic fields, drastically modify their electronic and optical properties. Whereas the first factor lies in the focus of current research activity of the nanoscience community, the role of the second factor was underestimated before. The proposed research is focused to fill this knowledge gap for carbon-based nanostructures. As a whole, the project contributes to the novel interdisciplinary research field, the nanoelectromagnetics, which represents a synthesis of macroscopic electrodynamics of inhomogeneous media and microscopic theory of electronic properties of nanostructures. We will study carbon nanotubes (CNTs) and graphene representing latest trends in carbon-based nanotechnology. As shown in our proposal, unique physical properties of these nanostructures provide the basis for novel THz applications. To achieve the ambitious goals of this project, the consortium involves scientists from both electromagnetic and nanostructure communities. Intensive transfer of knowledge between them is essential for success of the project.