Hungary's Climate Goals and Energy Transition Strategies by 2040
Hungary aims to achieve an 85% reduction in net emissions by 2040, necessitating immediate action on hard-to-decarbonize sectors. The Green Policy Center's study outlines the economic benefits of transitioning to a climate-neutral economy, emphasizing the importance of support systems for vulnerable populations amid upcoming EU emissions trading system changes.
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Hungary has attained a 47% reduction in net emissions as of 2023, outperforming the EU's 40% target. To meet the EU's 2040 climate goals, Hungary must address difficult-to-decarbonize processes sooner than planned.
The new EU emissions trading system (ETS2), effective from 2028, will apply to buildings and road transport, aiming for significant emissions reductions through user behavior changes. Proposed adjustments to support systems include income compensation and changes to utility pricing strategies to promote reduced energy consumption.
The introduction of ETS2 is projected to generate around 500 billion HUF in revenue from 2028, offering potential financial relief despite increased costs for households. The study emphasizes that addressing energy efficiency in Hungary's building stock is critical, particularly in rural areas where the worst-performing homes are located.
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