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Country Close-Up HUNGARY

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Country Close-Up HUNGARY 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 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 2 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 3 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. 4 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 5 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 6 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
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