Country Close-Up HUNGARY

The Covenant at a glance

The Covenant of Mayors (CoM) is the mainstream European movement involving local and regional authorities voluntarily committed to increasing energy efficiency and the use of renewable energy sources on their territories. By their commitment, Covenant Signatories aim to meet and exceed the

European Union (EU) 20% CO2 emissions reduction target by 2020.

What motivates Mayors to join?

"We have to be open-minded. We must start from a clean slate, so we can embrace best practices. This is true both locally and globally. We must be in constant communication, otherwise we loose perspective and our future." József Michl, Mayor of Tata

"Municipalities have new roles […] they are in charge of providing new perspectives by creating an environment, which inspires innovation. They must be creative in fulfilling their new roles. […] Even though energy management is a challenging endeavour, it must be a priority in each and every community." GyulaPorga, Mayor of Veszprém

"We are discussing an issue, which concerns us both locally and globally, thus we have to tackle it accordingly. The cost of energy supply is continuously rising, thus the shortage is more and more concerning […] therefore it is of utmost importance to save on the demand side." PéterSzaló, Deputy under Secretary of Spatial Planning, Construction Issues and Heritage Protection

Covenant in figures [last updated July 2013]

21Signatories 2.4 million Inhabitants

CO2 reduction target 24%

15 Sustainable Energy Action Plans

Full list of Signatories, Coordinators and Supporters available at www.eumayors.eu (>About)

1. Energy policy

Targets

Target year GHG reduction Energy efficiency Renewable energy (1990 levels)

2020 20% 20% 14.65% in final energy consumption

75% in final energy consumption 2050 80-95% 41% 97% in electricity consumption

Source: Hungarian Energy Bureau, Ministry of National Development (2011).

Energy policies in the spotlight

40/2008 Parliamentary Resolution on Energy Policies This regulation aims to increase the security of supply and competitiveness in relation to the overarching goal of sustainability. It attempts to harmonise energy and climate policies and initiates the establishment and implementation of an action plan on energy efficiency. It also establishes the decision-making process regarding nuclear capacity improvement. The resolution includes the reformulation of electricity grid regulations to meet EU standards. Finally, it initiates a renewable energy strategy to support Hungary's 2020 greenhouse gas emissions goal.

National Strategy on Climate Change (NÉS) The goal of NÉS for 2008-2025 is to promote a sustainable, climate-friendly development concept. The strategy specifies means to address climate change and reduce greenhouse gas emissions. It includes an in-depth analysis of final energy consumption, and projections on greenhouse gas emissions. The strategy also sets up incentives for the shift towards a carbon-neutral economy. It formulates goals on energy policy, highlighting the need to decouple Gross Domestic Product (GDP) and energy use to promote energy efficient practices and to revise fiscal policies considering environmental aspects.

FURTHER READING 40/2008 Parliamentary resolution of energy policies (HU): http://bit.ly/145uyWy National strategy on climate change (NÉS) (HU): http://bit.ly/1dXwcbi

Other relevant energy policies

Name Field Purpose Promote small and medium scale Combined Heat and Small/Medium CHP Cogeneration Power (CHP) to increase energy efficiency and installations diversity on the fuel market. Decrease the rate of road freight transport and Hungarian Transport Transport promote inter-modality for collective passenger Policy transport Renewable Energy Action Renewable Promote the use of renewable energy in heating, Plan Energy electricity production and fuel engines. Defines energy savings obligations for households, National Action Plan for Energy the tertiary sector, transport and non-energy intensive Energy Efficiency Efficiency industries. Tax on natural gas and Renewable Encourage the shift from fossil fuels to renewable electricity for the Energy energy sources. commercial sector

2. National energy profile

Key Indicators for 2010

Greenhouse gas emissions per capita 6.7 t CO2/capita

Final energy consumption per capita 16.7 MWh/capita

Primary energy consumption per capita 24.0 MWh/capita

Share of renewables in primary energy supply 7.7 %

Source: European Commission (2012), EU energy in figures, Statistical Pocketbook.

3. Funding instruments

National Funds and Programmes

Environment and Energy Operational Programme (KEOP) The programme is one of the six main themes of the New Hungary Development Plan (ÚMFT) for the fiscal period between 2007 and 2013. The main challenges are as follows: - Tackling nature protection and water management issues; - Developing sustainable environmental infrastructure; - Increasing the efficiency and feasibility of natural resources management. KEOP provides subsidies for energy efficiency and renewable energy investments. It promotes energy efficiency across different sectors such as energy production, transport, and public buildings, among others. Small and medium-sized enterprises (SMEs), public institutions and non-profit organisations are eligible to apply for the subsidy.

National Energy Conservation Programme (NEP) The National Energy Conservation Programme has been offering annual energy efficiency grants to households over the last six years. In 2008, five different types of energy efficiency improvements were subsidised as part of the programme, each with different subsidy intensity (SI). The subsidy intensity refers to the percentage of the overall investment that is subsidised by the state. 1. Replacement or insulation of windows and doors: SI of 15% up to a maximum per dwelling of HUF 265,000; 2. Improvement of heating and hot water supply (e.g. change of boilers): SI of 20%, up to a maximum per dwelling of HUF 400,000; 3. Thermal insulation of existing buildings: SI of 20% up to a maximum per dwelling of HUF 400,000; 4. Complex energy efficiency improvement of buildings: SI of 18% up to a maximum per dwelling of HUF 720,000; 5. Use of renewable energy (biomass, geothermal energy, wind, waste, solar collectors and photovoltaic) for heat and/or electricity: SI of 25% up to a maximum per dwelling of HUF1,000,000.

FURTHER READING

Operative Programme on Environment and Energy (EN/HU): http://www.nfu.hu/doc/534 National energy conversation programme (HU): http://www.nkek.hu/nep/hirek-informaciok

European Funds and Programmes

INTERREG IV B Programme for Central Europe Among several European programmes, such as Jessica (Joint European Support for Sustainable Investment in City Areas), cohesion funds and Jaspers (Joint Assistance to Support Projects in European Regions), eight EU Member States (Austria, Czech Republic, Germany, Hungary, Italy, Poland, Slovakia and Slovenia) in cooperation with Ukraine established the INTERREG IV B programme for Central Europe, which was adopted by the European Commission on the 3th of December 2007. The main objectives are as follows: . Improving the competitiveness of Central Europe by strengthening innovation and accessibility structures; . Enhancing the environmental quality and attractiveness of cities and regions in Central Europe through sustainable development policies.

For the period 2007-2013, some €246 million from the European Regional Development Fund (ERDF) are earmarked for Central European countries. As an eligibility criterion to be granted EU funds, 25% of the total project costs must be borne by the applicants. Co-financing may also be considered with private funds to which special rules apply. The total costs for projects should be between €1 and €5 million. The runtime of projects is normally three years but not officially fixed. Funding applications can be submitted by national, subnational, regional and local authorities, universities and non-governmental organisations. Small and medium-sized enterprises (SME), research and other private institutions may take part as well.

FURTHER READING INTERREG IV B Programme (EN): http://bit.ly/1aKVVUV “AZ ELKÖTELEZETTSÉGTŐL A CSELEKVÉSIG A Fenntartható Energia Akcióterv közelebbről” (HU): http://bit.ly/19kf0zb

4. Covenant in action

Signatories in action

City of Budapest – an integrated approach The Sustainable Energy Action Plan (SEAP) of Budapest (1,741,041 inhabitants) covers a wide array of actions across different sectors, such as built environment, transport, land use, urban planning, decentralised renewable energy supply, efficiency of local energy supply industries, community participation and behaviour change. Statistics concerning the average inhabitant's energy demand are fully available as of the year 2005. Fragmented organisations, in charge of the development of the city's transport system have been replaced by a single company BKK (Centre for Budapest Transport), which has set up its goals for the 2014-2020 period. BKK works out programmes such as the "Heart of Budapest", an inner-city reconstruction project, the development of the underground railway line 4 (see picture on the right), provision of 49 km of new bus lanes, mitigation of traffic on the bridges and the encouragement of urban biking. Municipality-owned buildings undergo energetic modernization, and private estates are also encouraged to do so. The city seeks to become a role model not only for Hungarian settlements, but also to other major cities in the region. http://bit.ly/1670VSz Picture source: http://www.enescom.org/

City of Eger – giving land back to nature Eger (56,530 inhabitants) was one of the first Hungarian communities, to establish a climate change strategy. Besides professional partners, Energiaklub (Energy Club) and MódszertaniKözpont (Centre for Methodologies), the municipality also encourages public engagement. As part of the strategy, citizens were asked to submit their own ideas, comments and remarks on climate change. The main objectives of the programme are as follows: mitigation of carbon-dioxide emission by 25% until 2030, rational energy use, environmental protection, and awareness-raising. The city recently won a tender for waste-deposit re-cultivation, which means giving land back to nature. There are several closed waste deposit areas in the region built in the 1970s, abandoned since 2009. Involved municipalities (see map on the right) participate in the re- cultivation programme, leaving natural landscape behind. The execution will be overseen by the Heves County Waste- management Association. This project was also preceded by a survey among citizens to raise awareness in waste management, and to determine the most notable aspects of waste re- cultivation, showing the municipality's commitment to citizens in decision-making. http://bit.ly/1aKWRII Picture source: www.eger.hu

City of Budaörs –"You are part of it!" The Budaörs city (27,000 inhabitants) development plan includes sustainability strategies. The plan considers the city's natural heritage to be part of Budaörs's identity; therefore its protection is a priority. Accordingly, all new interventions must seek to minimise their impact on nature. The city faces the impact of traffic flow, which is hastened by capacity increase, heavily affected by the demands of Budapest. The plan promotes the development of more environmental-friendly means of transport, such as rail and bike lanes. The city development plan also aims at contributing to tackle climate change on the level of the built environment. All new buildings owned by the local authority must entirely be supplied by renewable energy sources. Budaörs also encourages community participation. The city organises workshops for citizens in which games exploring possible future scenarios are held as well as workshops for professionals to brainstorm on further ideas. Also, a wish list option allows citizens to evaluate the city development plan, to suggest changes, to inform on the issues which are sometimes only visible to locals to provide valuable input for zoning plans. The format is an online message board with replies from the urban planners. This format allows stimulating participation and encouraging active citizenship by saying: “you are considered, you are a colleague, and you are part of it”. http://bit.ly/1aKWTk1 Picture source: http://www.budaors2020.hu/

5. Useful resources

Data Sources

Final energy consumption Hungarian Central Statistical Office (KSH)

National Environment and Energy Centre (MEH); (Hungarian Final energy consumption by sector Energy Office (NKEK)

Local heat/cold production, electricity Energy providers production

GHG emission factors National Ministry of Development (NFM)

National Environment and Energy Centre (NKEK); Hungarian National energy balance Energy Office (MEH)

Projects supporting Covenant Signatories

ODYSSEE MURE 2012 –Monitoring of energy efficiency in Europe The objective of the ODYSSEE-MURE 2012 project is to provide comprehensive monitoring of energy consumption and efficiency trends as well as of energy efficiency policy measures by sector across Europe. The originality of the project is to cover all sectors and end-users with a homogeneous and harmonised approach and to provide an overall picture of the trends and measures by sector. This project will also be used to support the monitoring of national and EU targets related to energy efficiency. It relies on two complementary internet databases which will be updated and improved during the action: 1) ODYSSEE database on energy efficiency/CO2indicators with data on energy consumption trends, drivers for energy use and energy-related CO2 emissions; 2) MURE database on energy efficiency policy measures including their impact evaluation. In addition, specific analysis will be carried out while combining indicators and information on policies. The project will also develop specific support facilities to ease the analysis and exploitation of the ODYSSEE MURE data. http://bit.ly/12NXiN6

4BIOMASS – The exploitation of biomass potential The Project 4Biomass fosters usage of bioenergy throughout Central Europe (CE) via turning know-how into show-how. The project contributes to sustainable exploitation of biomass in two ways: 1) The exchange of best practices concerning technology, demonstration projects and management approaches throughout CE will contribute to territorial cohesion. It will provide an equal level of knowledge regarding available technologies, investment possibilities and operation of bioenergy systems; 2) Direct support to regional stakeholders by turning know-how to show-how (workshops, project development, field trips). A Joint Management Tool consisting of a databank will pull information on CE demonstration projects and best practices. It will help stakeholders to find tailor-made solutions for investments in bioenergy plants, and for their operation. http://bit.ly/1aKXvWD (HU) | http://www.4biomass.eu/en/project (EN)

Technical support . Covenant Technical Helpdesk: [email protected] . Energy Agencies: http://energiaklub.hu/ . Research institutes: http://www.rekk.eu/index.php | http://mta.hu/cikkek/energetikai-bizottsag-112901

FURTHER INFORMATION IN HUNGARIAN

Covenant of Mayors website: http://www.covenantofmayors.eu/index_hu.html Brochures & Publications: http://www.eumayors.eu/support/library_hu.html

Publication directed by the Covenant of Mayors Office (CoMO). The CoMO is managed by a consortium of local and regional authorities’ networks, led by Energy- Cities, composed of CEMR, Climate Alliance, Eurocities and Fedarene.

Contributors: Richárd Ongjerth and Viktor Bukovszki (Hungarian Urban Knowledge Centre).

Published in August 2013.

The Covenant of Mayors Office is supported by the Intelligent Energy – Europe Programme. Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use that may be made of the information contained in this publication or any error that may remain in the texts, despite the care taken in preparing them.