Launch presentation for the 2018 Environmental Performance Review of Hungary.

1. Anthony Cox
OECD Environment Acting Director
Launch of the Environmental Performance Review of
Hungary
28 June 2018, Budapest

2. • Hungary needs to speed up transition to a low-carbon
economy
• More needs to be done to address air and water
pollution
• Environmental authorities should be strengthened and
encouraged to adopt best regulatory practices
• Legal provisions for environmental democracy need
better implementation
• Green taxes could provide additional revenue for much-
needed investment
• Progress in municipal solid waste management, but
resource efficiency and recycling need further
improvement
• The expansive network of protected areas requires
better management and financing
• Biodiversity concerns are well integrated in some
sectors, but there is room for improvement in others
2
Key messages

3. 3
Hungary has reduced its reliance on fossil fuels
in favour of low-carbon energy sources
Notes:
a) Index of relative change of total primary energy supply as percentage of GDP at 2010 prices and purchasing power parities.
Source: IEA (2017), IEA World Energy Statistics and Balances (database); OECD (2017), OECD National Accounts Statistics (database).
Two-
thirds
of
current
energy
supply
Energy supply by source, 2000-16

4. Fossil fuel subsidies aim to address
energy affordability for social reasons
4
0%
10%
20%
30%
40%
50%
Total consumer fossil fuel support as a share of the energy tax revenue, 2014
Note: Expenditures, which represent the majority of the support mechanisms, are not fully comparable across countries and need to be
interpreted with caution, bearing in mind that tax regimes can differ substantially.
Source: OECD (2017), "Green Growth Indicators", OECD Environment Statistics (database).

5. 5
0% 10% 20% 30%
CHE
LUX
FIN
FRA
GBR
ESP
AUT
TUR
GRC
NLD
DEU
IRL
CHL
BEL
POL
SLV
CZE
SVK
HUN
0% 10% 20% 30%
NLD
CZE
LUX
CHE
AUT
FIN
FRA
ESP
BEL
DEU
SLV
SVK
GRC
GBR
HUN
TUR
POL
CHL
IRL
Source: Flues, F. and K. van Dender (2017), “The impact of energy taxes on the affordability of domestic energy”, OECD Taxation Working Papers, No. 30.
But many of Hungary’s households face
energy affordability problems
0% 10% 20% 30%
CHE
LUX
FIN
FRA
AUT
NLD
ESP
GBR
TUR
GRC
DEU
IRL
BEL
CHL
SLV
CZE
POL
SVK
HUN
28% of Hungarian households
spend 10% of disposable income on
heating fuels and electricity
24% of households below poverty
line after expenditure on energy
22% of households spend more than
10% of disposable income on heating
fuels and electricity and below poverty
line after expenditure on energy

6. GHG emissions are starting to rise again
6Note: GHG emissions exclude land use, land use change and forestry (LULUCF). Dotted lines refer to national projections with existing measures.
Source: EEA (2017), Approximated EU GHG Inventory: Proxy GHG Emission Estimates for 2016; MoA (2017), National Inventory Report 1990-2015.
0
20
40
60
80
100
120
1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
Mt CO2 eq
GHG trends and projections towards long-term targets
Kyoto Protocol target
Total GHG (historic) Total GHG (projections WEM)
EU-ETS (historic) EU-ETS (projections WEM)
EU ESD (historic)
2020/2030 ESD targets Min./max. GHG track to 2050b
EU ESD (projections WEM)

7. Air pollution exposure and its costs
among the highest in the OECD
7Note: Data on mortality and value of statistical life are derived from Global Burden of Disease surveys.
Source: OECD (2017), "Air quality and health: Mortality and welfare cost from exposure to air pollution", OECD Environment Statistics (database).
Welfare cost of premature deaths from exposure to outdoor air pollution,
top ten OECD countries, 2005 and 2015
Percentage of GDP equivalent

8. Massive investment in wastewater
treatment
8
Public spending on environmental protection has increased
Expenditure by domain, HUF billion, 2010 prices
Note: General government expenditure according to the COFOG classification. Source: OECD (2017), OECD National Accounts (database).

9. 9
Growing wastewater treatment coverage
Source: Country submission.
Percentage of population connected to public wastewater treatment,
by type of treatment

10. Progress in waste recovery, but still a long
way to go…
10
0%
20%
40%
60%
80%
100%
Landfill Incineration without energy recovery
Incineration with energy recovery Material recovery (recycling+composting)
n.a.
Notes: Data refer to the indicated year or to the latest available year. They may include provisional figures and estimates. Household and
similar waste collected by or for municipalities, originating mainly from households and small businesses. Includes bulky waste and separate
collection. For the specific country notes see the source database.
Source: OECD (2017), "Municipal waste", OECD Environment Statistics (database).
Municipal waste management, by type of treatment, 2015

11. Lack of public financing for protected areas
11
National Park Directorates’ budget, 2008-16

12. http://oe.cd/epr-hungary
12
For more information

13. Anthony Cox
OECD Environment Acting Director
Launch of the Environmental Performance Review of Hungary
28 June 2018