COMMISSION STAFF WORKING DOCUMENT The EU Environmental Implementation Review Country Report - HUNGARY Accompanying the document Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions The EU Environmental Implementation Review: Common Challenges and how to combine efforts to deliver better results

Council of the European Union

Brussels, 6 February 2017 (OR. en)

5967/17 ADD 15

ENV 103 ECOFIN 70 SOC 68 COMPET 74 POLGEN 9 CONSOM 37

COVER NOTE

From: Secretary-General of the European Commission, signed by Mr Jordi AYET PUIGARNAU, Director

date of receipt: 6 February 2017

To: Mr Jeppe TRANHOLM-MIKKELSEN, Secretary-General of the Council of the European Union

No. Cion doc.: SWD(2017) 46 final

Subject: COMMISSION STAFF WORKING DOCUMENT

The EU Environmental Implementation Review

Country Report - HUNGARY

Accompanying the document

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions

The EU Environmental Implementation Review: Common Challenges and

how to combine efforts to deliver better results

Delegations will find attached document SWD(2017) 46 final.

Encl.: SWD(2017) 46 final

EUROPEAN COMMISSION

Brussels, 3.2.2017 SWD(2017) 46 final

COMMISSION STAFF WORKING DOCUMENT

The EU Environmental Implementation Review

Country Report - HUNGARY

Accompanying the document

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions

The EU Environmental Implementation Review: Common Challenges and how to

combine efforts to deliver better results

{COM(2017) 63 final i}

{SWD(2017) 33 - 45 final}

{SWD(2017) 47 - 60 final}

Hungary 2

This report has been written by the staff of the Directorate-General for Environment, European Commission. Any comments are welcome to the following e-mail address: ENV-EIR@ec.europa.eu

Hungary 3

More information on the European Union is available on the internet ( http://europa.eu ).

Photographs: p.10 – ©Richard Schmidt-Zuper/iStock, p.11 – ©LIFE07 NAT/H/000324/Noémi

Matušicová/, p.17 – ©Artur Synenko/iStock, p.22 – ©Vasiliki Varvaki/iStock

For reproduction or use of these photos, permission must be sought directly from the copyright holder.

©European Union, 2017

Reproduction is authorised provided the source is acknowledged.

Table of Contents

EXECUTIVE SUMMARY .................................................................................................................................... 4

PART I: THEMATIC AREAS ............................................................................................................................... 5

• 1. 

  TURNING THE EU INTO A CIRCULAR, RESOURCE-EFFICIENT, GREEN AND COMPETITIVE LOW-

  CARBON ECONOMY ............................................................................................................................... 5

  Developing a circular economy and improving resource efficiency ..................................................... 5

Measures towards a circular economy ..................................................................................... 5

SMEs and resource efficiency .................................................................................................... 5

Eco-Innovation .......................................................................................................................... 6

Waste management .............................................................................................................................. 6

• 2. 

  PROTECTING, CONSERVING AND ENHANCING NATURAL CAPITAL ....................................................... 9

  Nature and Biodiversity ......................................................................................................................... 9

  Estimating Natural Capital................................................................................................................... 11

  Green Infrastructure ........................................................................................................................... 11

  Soil protection ..................................................................................................................................... 11

• 3. 

  ENSURING CITIZENS' HEALTH AND QUALITY OF LIFE .......................................................................... 13

  Air quality ............................................................................................................................................ 13

  Noise 14

  Water quality and management ......................................................................................................... 14

  Enhancing the sustainability of cities .................................................................................................. 17

  International agreements ................................................................................................................... 18

PART II: ENABLING FRAMEWORK: IMPLEMENTATION TOOLS ..................................................................... 19

• 4. 

  MARKET BASED INSTRUMENTS AND INVESTMENT ............................................................................ 19

  Green taxation and environmentally harmful subsidies ..................................................................... 19

  Green Public Procurement .................................................................................................................. 20

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Investments: the contribution of EU funds ......................................................................................... 20

• 5. 

  EFFECTIVE GOVERNANCE AND KNOWLEDGE ...................................................................................... 22

  Effective governance within central, regional and local government ................................................. 22

Capacity to implement rules ................................................................................................... 22

Coordination and integration .................................................................................................. 23

Compliance assurance ......................................................................................................................... 23

Public participation and access to justice ........................................................................................... 25

Access to information, knowledge and evidence ................................................................................ 25

Hungary 5

Executive summary

About the Environmental Implementation Review represents a challenge.

In May 2016, the Commission launched the Main Challenges

Environmental Implementation Review (EIR), a two-year

cycle of analysis, dialogue and collaboration to improve The three main challenges with regard to the implementation of existing EU environmental policy implementation of EU environmental policy and law in and legislation 1 . As a first step, the Commission drafted Hungary are:

28 reports describing the main challenges and  Accelerating the progress made over the past decade opportunities on environmental implementation for each to meet the EU waste targets, also by revising the Member State. These reports are meant to stimulate a tariff policy for waste management. positive debate both on shared environmental challenges  Complying with EU air quality limit values, in for the EU, as well as on the most effective ways to particular for dust particles. address the key implementation gaps. The reports rely on  Completing the Natura 2000 network with sitethe detailed sectoral implementation reports collected or specific conservation measures and ensuring issued by the Commission under specific environmental adequate resources for them combined with legislation as well as the 2015 State of the Environment floodplain conservation and restoration including the Report and other reports by the European Environment flood risk management (minimalize the flood risk) Agency. These reports will not replace the specific

instruments to ensure compliance with the EU legal Main Opportunities

obligations. Hungary could perform better on topics where there is

The reports will broadly follow the outline of the 7th already a good knowledge base and good practices. This

Environmental Action Programme 2 and refer to the 2030 applies in particular to:

Agenda for Sustainable development and related

Sustainable Development Goals (SDGs) 3 to the extent to  Using the financial opportunities made available by which they reflect the existing obligations and policy the EU (the EU structural and investment funds –

objectives of EU environmental law 4 . ESIF, EFSI as well as EIB loans) in the sectors covered by the EIR.

The main challenges have been selected by taking into  Using the upcoming review of the National Waste account factors such as the importance or the gravity of Management Plan to make a better use of economic the environmental implementation issue in the light of instruments to prevent waste generation, improve the impact on the quality of life of the citizens, the separate collection and recycling, and reduce distance to target, and financial implications. landfilling.

The reports accompany the Communication "The EU  Stepping up the implementation of the national Environmental Implementation Review 2016: Common Cross-sectoral Action Programme for the reduction challenges and how to combine efforts to deliver better of small particulate matter (PM 5 10 ) .

results", which identifies challenges that are common to

several Member States, provides preliminary conclusions Points of Excellence

on possible root causes of implementation gaps and

proposes joint actions to deliver better results. It also Where Hungary is a leader on environmental groups in its Annex the actions proposed in each country implementation, innovative approaches could be shared report to improve implementation at national level. more widely with other countries. A good example is:

General profile  The recently established unified National Research, Development and Innovation Fund, provided that it

Although Hungary is making efforts to preserve its rich allocates state support for research, development natural heritage and improve its environmental and innovation in environmental fields. performance, environmental implementation still

1 Communication "Delivering the benefits of EU environmental policies through a regular Environmental Implementation Review"

( COM/2016/ 316 final ). 2 Decision No. 1386/2013/EU of 20 November 2013 on a General Union

Environmental Action Programme to 2020 " Living well, within the limits of our planet ".

3 United Nations, 2015. The Sustainable Development Goals 5 This Programme was approved by Government Decree No 1330/2011

4 This EIR report does not cover climate change, chemicals and energy. of 12 October 2011.

Hungary 5

Environmental Implementation Report – Hungary

Part I: Thematic Areas

• 1. 

  Turning the EU into a circular, resource-efficient, green and

  competitive low-carbon economy

  Although strategic thinking to embed the circular

Developing a circular economy and improving economy concept in the Hungarian economy is yet to be

resource efficiency developed, there is both political will and some private initiatives to improve the performance in the use of

The 2015 Circular Economy Package emphasizes the need resources. In the 2011 National Environmental to move towards a lifecycle-driven ‘circular’ economy, Technology Innovation Strategy

9 , which is part of the

with a cascading use of resources and residual waste that Hungarian National Reform Programme, Hungary is close to zero. This can be facilitated by the stipulates reducing its material intensity to 80% of the development of, and access to, innovative financial 2007 level by 2020.

instruments and funding for eco-innovation. Hungary has a technology advantage in environment

SDG 8 invites countries to promote sustained, inclusive related technologies, while ICT and bio-and and sustainable economic growth, full and productive nanotechnologies are close to the OECD median. employment and decent work for all. SDG 9 highlights Regarding good practices, a project on the integration of the need to build resilient infrastructure, promote algae production into waste water treatment, thereby inclusive and sustainable industrialization and foster enhancing water quality, building green image and innovation. SDG 12 encourages countries to achieve the improving economics is a good example

10 .

sustainable management and efficient use of natural There is a wide use of measures aiming to provide resources by 2030. targeted information and advice to companies on

Measures towards a circular economy resource efficiency. One of the main measures is an initiative ('Ablakon Bedobott Pénz'), which consists of an

Transforming our economies from linear to circular offers eco-mapping of companies and a brainstorming with the an opportunity to reinvent them and makes them more employees in order to identify a list of measures which sustainable and competitive. This will stimulate could help to achieve environmental savings 11 .

investments and bring both short- and long-term benefits

for the economy, environment and citizens alike. 6 Figure 1: Resource productivity 2003-15

12

Hungary is performing below the EU average in terms of resource productivity (how efficiently the economy uses

material resources to produce wealth) 7 , with 0.9 EUR/kg

(EU average is 2) in 2015. Figure 1 shows that this represents a slight decrease since 2012.

There is no comprehensive steer towards a circular economy concept in Hungarian policies yet. The National Environmental Programme IV (2015-2020) is the latest broad strategic document relating to environment, which

encompasses several different strategies 8 , and for this

reason it could be a good starting point in this respect.

Dialogues and consultation on the circular economy have started mainly involving the waste management sector and the public sector.

6 European Commission, 2015. Proposed Circular Economy Package

7 Resource productivity is defined as the ratio between gross domestic product (GDP) and domestic material consumption (DMC). 9 National Environmental Technology Innovation Strategy 2011–2020,

8 including the Strategy for the Countryside, the National Forest approved by Government Decree No 1307/2011 of 6 September

Programme and Strategy, the National Energy Efficiency Action Plan, 2011.

the National Renewable Energy Action Plan, the National Climate 10 Szent István Egyetem, 2015. Izolált algafajok célzott alapkutatása Change Strategy, the National Transport Strategy and also the 11 Ablakon Bedobott Pénz National Concept of Development and Spatial Planning. 12 Eurostat, Resource productivity , accessed October 2016

Hungary 6

SMEs and resource efficiency Figure 2: Eco-Innovation Index 2015 (EU=100) 17

Around 59% of Hungary's Small and Medium Sized

Enterprises (SMEs) have invested up to 5% of their annual turnover in their resource efficiency actions (EU28 average 50%), 18% of them are currently offering green products and services (EU28 average 26%), 59% took measures to save energy (EU28 average 59%), 48% to minimise waste (EU28 average 60%), 44% to save water (EU28 average 44%), and 49% to save materials (EU28

average 54%) 13 . From a circular economy perspective,

18% took measures to recycle by reusing material or waste within the company (EU28 average 40%), 14% to design products that are easier to maintain, repair or reuse (EU28 average 22%) and 20% were able to sell their scrap material to another company (EU28 average 25%).

The resource efficiency actions undertaken allowed the reduction of production costs in 50% of Hungary's SMEs (EU28 average 45%). In terms of "green jobs", 22% of the SMEs in Hungary have one or more full time employee working in a green job at least some of the time (EU28

average 35%) 14 .

Eco-Innovation

Hungary is ranked 18th on the Eco-innovation scoreboard, as shown in Figure 2, which is still below the

EU average, but showing a significant step forward from Suggested action

the 23rd position it occupied in 2013. • Develop an overarching circular economy policy

The National Sustainable Development Strategy framework, create economic instruments to support Framework (2012-24) 15 adopted in March 2013, contains the transition towards it and raise awareness within a description of the national resources, lists ongoing the general public and private sector on circular unsustainable processes and describes the appropriate economy principles and products. directions to choose. Furthermore, it confirms that • Adopt circular economy principles within the SME scientific research and corporate innovation constitute sector, improve their access to finance, promote fullthe

basis for economic growth. time green jobs and support the increase of their innovation rates.

Hungary has 29 EMAS 16 registered organisations, which is • Incentivise investments in green products and services.

quite low with respect to the total of 4034 organisations that hold a registration. As regards the use of the EU

Ecolabel, there are 22 licenses, which is a low number Waste management

with respect to the 1875 total number of licenses. Turning waste into a resource requires:

− Full implementation of Union waste legislation, which includes the waste hierarchy; the need to ensure separate collection of waste; the landfill

13 diversion targets etc. European Commission, 2015. Flash 426 Eurobarometer "SMEs,

resource efficiency and green markets" − Reducing per capita waste generation and waste

14 The Flash 426 Eurobarometer defines "green job" as a job that generation in absolute terms. directly deals with information, technologies, or materials that − Limiting energy recovery to non-recyclable materials preserves or restores environmental quality. This requires specialised and phasing out landfilling of recyclable or

skills, knowledge, training, or experience (e.g. verifying compliance

with environmental legislation, monitoring resource efficiency within recoverable waste.

the company, promoting and selling green products and services). SDG 12 invites countries to substantially reduce waste 15 18/2013. (III. 28.) OGY határozat a Nemzeti Fenntartható Fejlődés generation through prevention, reduction, recycling and

Keretstratégiáról ; National Framework Strategy on Sustainable

Development of Hungary reuse by 2030.

16 The Eco-Management and Audit Scheme (EMAS) is a voluntary The EU's approach to waste management is based on the

environmental management tool for companies and other organisations to evaluate, report and improve their environmental

performance. 17 Eco-innovation Observatory : Eco-Innovation scoreboard 2015

Hungary 7

"waste hierarchy" which sets out an order of priority composting rate of only 6%, well below the EU average. when shaping waste policy and managing waste at the Compliance with the 2020 target of 50% recycling will

operational level: prevention, (preparing for) reuse, therefore require more effort. 21 .

recycling, recovery and, as the least preferred option,

disposal (which includes landfilling and incineration Figure 4: Recycling rate of municipal waste 2007-14

22

without energy recovery).

The progress towards reaching recycling targets and the adoption of adequate waste management plans / waste prevention programs are key items to measure the performance of Member States. This section focuses on management of municipal waste for which EU law sets mandatory recycling targets.

Figure 3: Municipal waste by treatment in Hungary 2007-

14 18

Landfilling of municipal waste accounts for 57% whereas

the EU average is 28%. 23

In addition, in 2012-14, Hungary did not meet the 2008 packaging waste recycling target of 55% since the recycling rate in 2014 accounted for 52.3%, while the packaging recovery rate dropped slightly below the mandatory level of 60%. In order to help bridging the implementation gap in Hungary, the Commission has

delivered a roadmap for compliance 24 . Hungary adopted

a National Waste Management Plan for the period 2014- 20 which is currently under conceptual revision.

Waste management is still inefficient in Hungary, which is

struggling to meet important EU waste targets. Economic The underlying causes for the current distance to EU instruments and other mechanisms to prevent waste waste targets are: generation, improve separate collection/recycling and − Lack of co-ordination between the different

reduce landfilling are not efficient enough. administrative levels; − Insufficient (door-to-door) separate collection of

Municipal waste 19 generation in 2014 has slightly waste; increased compared to 2013 (from 378 kg/y/inhabitant − No developments in infrastructure and collection

to 385 kg/y/inhabitant), but Hungary is below the EU-28

average (which is 475 kg/y/inhabitant) 20 . systems to divert biodegradable waste from landfilling;

Figure 3 depicts the municipal waste by treatment in − Lack of incentives to manage waste according to the

Hungary in terms of kg per capita, which shows an waste hierarchy;

increase of the recycling rates and a decrease in − Extended producer responsibility (EPR) systems

landfilling.

Though slowly rising, recycling of municipal waste is still 21

not adequately developed, reaching only 31%, including Member States may choose a different method than the one used by ESTAT (and referred to in this report) to calculate their recycling rates

and track compliance with the 2020 target of 50% recycling of municipal waste.

18 Eurostat, Municipal waste and treatment, by type of treatment 22 Eurostat, Recycling rate of municipal waste , accessed October 2016 method, accessed October 2016 23 Although there are no targets on landfilling rates of municipal waste,

19 Municipal waste consists of waste collected by or on behalf of there is a clear connection between low recycling performance and municipal authorities, or directly by the private sector (business or high landfilling.

private non-profit institutions) not on behalf of municipalities. 24 European Commission, 2016. 20 Eurostat, Municipal waste generation and treatment, by type of http://ec.europa.eu/environment/waste/framework/support_imple

treatment method, accessed October 2016 mentation.htm. Country factsheet Hungary.

Hungary 8

could be improved. to guarantee coverage of the actual costs of waste

The use of economic instruments is important in this management. Therefore, these recent reforms raise respect. In Hungary there is an existing landfill taxation serious concerns regarding the medium to long-term regulation which was initially planned to be implemented sustainability of environmental projects.

32

on a phased basis, rising from EUR 10/t to EUR 40/t by Preventing and reducing waste generation, together with

2016. 25 Separate collection schemes should be improved the necessary increase in reuse and recycling, could

through more door-to-door collection including of bioimprove resource efficiency of the Hungarian economy, degradable waste. A suitably designed aggregates tax increase business opportunities and provide jobs in the could help reduce extraction rates for aggregates and recycling sector, conducive to a circular economy. Better stimulate demand for aggregates from secondary allocation of Cohesion Policy funds towards solution

sources. 26 This approach is aligned with the Roadmap to ranking higher in the waste hierarchy will also contribute a Resource Efficient Europe 27 . In addition, introducing an to this goal. When taking decisions about future waste

incineration tax could help avoiding that wastes from management infrastructure, care needs to be taken not landfills are simply shifted to incinerators. to create overcapacities for residual waste management

In Hungary, two instruments are widely used on waste (mechanical-biological treatment plants and waste-toenergy plants).

management supporting extended producer

responsibility. One is the so-called WEEE 28 coupon, which Full implementation of the existing EU waste legislation

is used when consumers (households) take back their ecould create more than 13,300 jobs in Hungary and waste to an EEE selling point. The consumers then get a increase the annual turnover of the waste sector by EUR coupon which can be used when the next piece of EEE is 1.4 billion. Moving towards the targets of the Roadmap

purchased 29 . The other tool is the environmental product on resource efficiency, which outlines how we can

fee, which is applied to a wide range of products transform Europe's economy into a sustainable one by including batteries, packaging materials, EEE, tyres, 2050, could create over 16,000 additional jobs and

plastic bags, plastics and office paper 30 . increase the annual turnover of the waste sector by over

However, government pricing policies applied, inter alia, EUR 1,688 million

33 .

in the waste management sector have triggered forced Suggested action

tariff decreases which can potentially distort the market

and provide wrong incentives. Recently Hungary has • Increase gradually landfill taxes to phase-out landfilling introduced a new system, whereby standard fees are of recyclable and recoverable waste. Use the revenues collected from the population by a newly established to support the separate collection and alternative national holding, redistributing in turn the resources to infrastructure in conjunction with a better allocation of

the operators. 31 However, the fees collected do not seem the cohesion policy funds to the higher steps of waste hierarchy, while avoiding excessive infrastructure for

25 The landfill tax increased from EUR 10/t (2013) to EUR 20/t (2014) the treatment of residual waste.

and it remained at that level since then. • Implement an efficient tariff policy to ensure financial

26 European Environment Agency (EEA) Effectiveness of Environmental viability of waste management companies, and Taxes and Charges for Managing Sand, Gravel and Rock Extraction in financial sustainability of projects.

Selected EU Countries , June 2008.

27 European Commission, Roadmap to a Resource Efficient Europe, • Undertake a review of the governance and

COM(2011) 571 , which outlines how we can transform Europe's performance of EPR schemes.

economy into a sustainable one by 2050.

28 waste electrical and electronic equipment

29 The legal base of the coupon is the Gov. Decree No. 197/2014 (VIII.

1.) , which entered into force in 2015.

30 In 2011 a ‘Green Tax Act’ on environmental product fees ( 2011. évi

LXXXV. törvény a környezetvédelmi termékdíjról ) was passed by the Parliament, introducing significant changes to the environmental fees on products. The fee on advertising papers was raised threefold. The most recent changes were made in 2015 when the fee was extended to additional products, including soaps, washing powders, cosmetic products, and, remarkably, to photovoltaic panels. Furthermore, the recent changes introduced six new ‘pollution categories’ according to the degree of the pollution of the specific determined at the national level with a possibility of using correction products. The main aim of these changes was to create a more factors depending on the quality of services provided and on the transparent and simpler system which would reduce the contribution to the fulfilment of EU waste targets.

administrative burden. 32 The new system is at an early phase of implementation, therefore its 31 Since 1 April 2016 the National Organizer of Waste and Asset medium to long-term effects are only estimates.

Management has been in charge of coordinating the public waste 33 Bio Intelligence service, 2011. Implementing EU Waste legislation for

management services at the national level, collecting the public Green Growth , study for European Commission. The breakdown per service fees from the population and paying the service fee to the country on job creation was made by the consultant on Commission public service operators for their activity. The standard fee is demand but was not included in the published document.

Hungary 9

•

• 2. 

  Protecting, conserving and enhancing natural capital

Nature and Biodiversity Figure 5 36 shows that the SCIs part of the Natura 2000

The EU Biodiversity Strategy aims to halt the loss of network in Hungary is considered sufficiently designated 37 .

biodiversity in the EU by 2020, restore ecosystems and

their services in so far as feasible, and step up efforts to Figure 5: Sufficiency assessment of SCI networks in avert global biodiversity loss. The EU Birds and Habitats Hungary based on the situation until December 2013

Directives aim at achieving favourable conservation (%) 38

status of protected species and habitats.

SDG 14 requires countries to conserve and sustainably use the oceans, seas and marine resources, while SDG 15 requires countries to protect, restore and promote the sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss.

The 1992 EU Habitats Directive and the 1979 Birds

Directive are the cornerstone of the European legislation aimed at the conservation of the EU's wildlife. Natura

2000, the largest coordinated network of protected areas in the world, is the key instrument to achieve and implement the Directives' objectives to ensure the longterm protection, conservation and survival of Europe's most valuable and threatened species and habitats and the ecosystems they underpin.

The adequate designation of protected sites as Special

Ares of Conservation (SAC) under the Habitats Directive and as Special Protection Areas (SPA) under the Birds

Directive is a key milestone towards meeting the

objectives of the Directives. The results of Habitats By the end of 2013 all sites had been designated as SACs

Directive Article 17 34 and Birds Directive Article 12 under article 4(4) of the Habitats Directive. In February reports and the progress towards adequate Sites of 2016, 285 Natura 2000 sites had management plans in Community Importance (SCI)-SPA and SAC designation 35 place, covering 54% of all Natura 2000 sites covered. both in land and at sea, should be the key items to Management plans for an additional 52 sites were under measure the performance of Member States. preparation. Under national legislation, these plans are

not obligatory and there is no legal obligation to

Hungary hosts 46 habitat types and 142 species covered implement them. Management of Natura 2000 and by the Habitats Directive. The country also hosts enforcement of nature legislation is carried out by 10 populations of 78 bird species listed in the Birds Directive national park directorates, supervised by the Ministry of

and 23 migratory species.

By early 2016, 21.44% of the national land area of

36

Hungary is covered by Natura 2000 (EU average 18.1%), The percentages in Figure 5 refer to percentages of the total number

with 56 Birds Directive SPAs covering 14.78% (EU average of assessments (one assessment covering 1 species or 1 habitat in a given biographical region with the Member State); if a habitat type or

12.3%) and 479 Habitats Directive SCIs covering 15.25% a species occurs in more than 1 Biogeographic region within a given

(EU average 13.8%). Member State, there will be as many individual assessments as there

are Biogeographic regions with an occurrence of that species or habitat in this Member State.

37 For each Member State, the Commission assesses whether the

species and habitat types on Annexes I and II of the Habitats

34 The core of the ‘Article 17’ report is the assessment of conservation Directive are sufficiently represented by the sites designated to date.

status of the habitats and species targeted by the Habitats Directive This is expressed as a percentage of species and habitats for which

35 Sites of Community Importance (SCIs) are designated pursuant to the further areas need to be designated in order to complete the

Habitats Directive whereas Special Areas of Protection (SPAs) are network in that country. A scientific reserve is given when further designated pursuant to the Birds Directive; figures of coverage do research is needed to identify the most appropriate sites to be added not add up due to the fact that some SCIs and SPAs overlap. Special for a species or habitat. The current data , which were assessed in Areas of Conservation (SACs) means a SCI designated by the Member 2014-2015, reflect the situation up until December 2013.

States. 38 European Commission internal assessment.

Hungary 10

Agriculture. species have been identified as the greatest threats to

In Hungary, in 2012 39 only approximately 20% of the biodiversity in Hungary.

habitat types and 37% of the species covered by the

Habitats Directive had favourable conservation status 40

(EU average is respectively 16% and 23%). Furthermore,

57% of the habitat types are considered to be unfavourable–inadequate (EU27: 47%) and 24 % are unfavourable – bad (EU27: 30%). As for the species, 54 % were at unfavourable-inadequate (EU27: 42%) and 8% at unfavourable-bad status (EU27: 18%). This is depicted in

Figure 6 41 . Among the habitats, grasslands and

freshwater habitats fared comparatively worst.

Figure 6: Conservation status of habitats and species in

Hungary in 2007/2013 (%) 42

The main challenges related to Natura 2000 in Hungary include ensuring sufficient resources (financial and human) to carry out necessary management and restoration measures, improving the knowledge base (including long-term monitoring), developing institutional capacities (including site control and preparation of remaining management plans) as well as raising public awareness about values of Natura 2000. Improving appropriate assessment of projects potentially detrimental to nature (such as road or energy infrastructure) is also important.

Figure 7: Short-term population trend of breeding and

wintering bird species in Hungary in 2012 (%) 43

Figure 7 shows that as far as birds are concerned, only

20% of the breeding species showed long-term increasing or stable population trends (for wintering species this figure was 39%). Intensive agriculture and forestry, together with human-induced modifications of natural conditions (e.g. of water systems) and invasive alien

39 Reporting period 2007-2012 for habitats and species covered by the

Habitats Directive and 2008-2012 for birds. The main challenges related to Natura 2000 in Hungary

40 Conservation status is assessed using a standard methodology as

being either ‘favourable’, ‘unfavourable-inadequate’ and include ensuring sufficient resources (financial and

‘unfavourable-bad’, based on four parameters as defined in Article 1 human) to carry out necessary management and

of the Habitats Directive. restoration measures, improving the knowledge base 41 Please note that a direct comparison between 2007 and 2013 data is (including long-term monitoring), developing institutional

complicated by the fact that Bulgaria and Romania were not covered

by the 2007 reporting cycle, that the ‘unknown’ assessments have capacities (including site control and preparation of

strongly diminished particularly for species, and that some reported remaining management plans) as well as raising public

changes are not genuine as they result from improved data / awareness about values of Natura 2000. Improving

monitoring methods. appropriate assessment of projects potentially

42 These figures show the percentage of biogeographical assessments in

each category of conservation status for habitats and species (one detrimental to nature (such as road or energy

assessment covering 1 species or 1 habitat in a given biographical region with the Member State), respectively. The information is based on Article 17 of the Habitats Directive reporting - national 43 Article 12 of the Birds Directive reporting - national summary of summary of Hungary Hungary

Hungary 11

infrastructure) is also important. Detailed national habitat mapping is available for the

Suggested action majority of Natura 2000 sites, including mapping of the quality of natural and semi-natural habitats. A national

• Ensure that changes in ownership (the new private initiative on the mapping and assessment of ecosystems ownership structure of the previously state-owned and their services is under preparation within the Natura 2000 lands) fully respect the conservation Environment and Energy Efficiency Operational

objectives of these sites and do not result in weakening Programme (EEEOP) 46 . The expected results of the

their protection status. 44 Complete the Natura 2000 project will improve understanding of the state of network with site-specific conservation measures, ecosystem services, give inputs to the designation and adequately resourced, which are able to maintenance of green infrastructure and contribute to maintain/restore species and habitats of community the identification and assessment of landscape interest to a favourable conservation status across characteristics.

their natural range.

• Develop and promote smart and streamlined Suggested action

implementation approaches, in particular as regards • Within the national project under preparation provide site and species permitting procedures, ensuring the support for mapping and assessment of ecosystems necessary knowledge and data availability and and their services, valuation and development of strengthen communication with stakeholders. natural capital accounting.

Green Infrastructure

The EU strategy on green infrastructure 47 promotes the

incorporation of green infrastructure into related plans and programmes to help overcome fragmentation of habitats and preserve or restore ecological connectivity, enhance ecosystem resilience and thereby ensure the continued provision of ecosystem services.

Green Infrastructure provides ecological, economic and social benefits through natural solutions. It helps to understand the value of the benefits that nature provides to human society and to mobilise investments to sustain and enhance them.

The backbone of green infrastructure in Hungary is the National Ecological Network, which incorporates

Estimating Natural Capital protected areas and Natura 2000 sites, complemented

with other natural and semi-natural adjacent areas. This

The EU Biodiversity Strategy to 2020 calls on the Member accounts for 36% of the total area of the country. The

States to map and asses the state of ecosystems and zone of the National Ecological Network is entrenched in

their services 45 in their national territory by 2014, assess the municipal planning of settlements. The National

the economic value of such services, and promote the Ecological Network was updated in 2014 and the integration of these values into accounting and reporting National Spatial Plan was amended accordingly, keeping systems at EU and national level by 2020. the regulations of the zones of the ecological networks.

In order to safeguard ecosystem services it is important The European Union Strategy for the Danube Region – to know their status and changes. Based on a large-scale ratified by Hungary in 2011 – includes the development vegetation mapping carried out between 2003 and 2006 of green infrastructure to connect different bioacross the micro-regions of Hungary, the Natural Capital geographic regions and habitats along the Danube river, Index (NCI) was evaluated in 2008. amongst other biodiversity goals.

44 In 2015, Hungary launched a sales-campaign of state-owned land,

including 30.000-35.000 ha land belonging to the Natura 2000 network. This has prompted strong criticism by environmental NGOs who are concerned that the change of ownership structure will ultimately have negative effects on the conservation of these sites.

45 Ecosystem services are benefits provided by nature such as food, 46 European Commission, Environmental and Energy Efficiency OP

materials, clean water, clean air, climate regulation, flood Hungary prevention, pollination and recreation on which human society 47 European Union, Green Infrastructure — Enhancing Europe’s Natural depends. Capital, COM/2013/0249

Hungary 12

proportion of arable land (up to 75 % EU, average 46.7%) as such the protection of soils should be of high

Soil protection importance.

The EU Soil Thematic Strategy highlights the need to The implementation of Good Agricultural and

ensure a sustainable use of soils. This requires the Environmental Conditions (GAEC) in 2003 in agricultural lands of Member States has helped to reduce soil loss

prevention of further soil degradation and the

preservation of its functions, as well as the restoration of rates. GAEC has contributed in reducing the overall soil

degraded soils. The 2011 Road Map for Resourceerosion from 2.71 tonnes per hectare per year to 2.46 tonnes per hectare per year (decrease of 9.5 %). The

Efficient Europe, part of Europe 2020 Strategy provides

that by 2020, EU policies take into account their direct highest reduction of soil loss due to GAEC

and indirect impact on land use in the EU and globally, implementation was in arable land (mean reduction of 20.2 %).

and the rate of land take is on track with an aim to

achieve no net land take by 2050. There are still no EU-wide datasets enabling the provision

SDG 15 requires countries to combat desertification, of benchmark indicators for soil organic matter decline,

restore degraded land and soil, including land affected by contaminated sites, pressures on soil biology and diffuse pollution. An updated inventory and assessment of soil

desertification, drought and floods, and strive to achieve

a land-degradation-neutral world by 2030. protection policy instruments in Hungary and other EU Member States is being performed by the EU Expert

Soil is an important resource for life and the economy. It Group on Soil Protection.

provides key ecosystem services including the provision Figure 8: Land Cover types in Hungary 2012 51

of food, fibre and biomass for renewable energy, carbon sequestration, water purification and flood regulation, the provision of raw and building material. Soil is a finite and extremely fragile resource and increasingly degrading in the EU. Land taken by urban development and infrastructure is highly unlikely to be reverted to its natural state; it consumes mostly agricultural land and increases fragmentation of habitats. Soil protection is indirectly addressed in existing EU policies in areas such as agriculture, water, waste, chemicals, and prevention of industrial pollution.

Figure 8 shows the different land cover types in Hungary in 2012.

Artificial land cover is used for settlements, production systems and infrastructure.

The annual land take rate (growth of artificial areas) as provided by CORINE Land Cover was 0.29% in Hungary over the period 2006-12, below the EU average (0.41%).

It represented 1626.5 hectares per year and was mainly driven by housing, services and recreation as well as

mines, quarries and dump sites 48 .

The percentage of built up land in 2009 was 3.17%, close

to the EU average (3.23%) 49 . The soil water erosion rate

in 2010 was 1.62 tonnes per ha per year, below EU-28

average (2.46 tonnes) 50 . The numbers show that the rate

of eroison is definitely higher than the rate of soil formation. Hungary is a country with a very high

48 European Environment Agency Draft results of CORINE Land Cover

(CLC) inventory 2012; mean annual land take 2006-12 as a % of 2006 artificial land.

49 European Environment Agency, 2016. Imperviousness and

imperviousness change 51 European Environment Agency, Land cover 2012 and changes country 50 Eurostat, Soil water erosion rate , Figure 2, accessed November 2016 analysis [publication forthcoming]

Hungary 13

• 3. 

  Ensuring citizens' health and quality of life

  (-60%) ensure air emissions for these pollutants are

Air quality within the currently applicable national emission

ceilings 54 .

The EU Clean Air Policy and legislation require that air

quality in the Union is significantly improved, moving At the same time, air quality in Hungary continues to give closer to the WHO recommended levels. Air pollution cause for concern. For the year 2013, the European and its impacts on ecosystems and biodiversity should be Environment Agency estimated that more than 12 890 further reduced with the long-term aim of not exceeding premature deaths in Hungary were attributable to fine

critical loads and levels. This requires strengthening particulate matter 55 concentrations, more than 460 to efforts to reach full compliance with Union air quality ozone 56 concentration and more than 390 to nitrogen legislation and defining strategic targets and actions dioxide 57 concentrations 58 . This is due also to

beyond 2020. exceedances above the EU air quality standards, as

The EU has developed a comprehensive suite of air shown in Figure 9

59 .

quality legislation 52 , which establishes health-based For 2014, exceedances above the EU air quality standards

Figure 9: Attainment situation for PM10, NO2 and O3 in 2014

standards and objectives for a number of air pollutants. 54

As part of this, Member States are also required to The current national emission ceilings apply since 2010 ( Directive 2001/81/EC ); revised ceilings for 2020 and 2030 have been set by

ensure that up-to-date information on ambient Directive (EU) 2016/2284 on the reduction of national emissions of

concentrations of different air pollutants is routinely certain atmospheric pollutants, amending Directive 2003/35/EC i and

made available to the public. In addition, the National repealing Directive 2001/81/EC i. 55

Emission Ceilings Directive provides for emission Particulate matter (PM) is a mixture of aerosol particles (solid and liquid) covering a wide range of sizes and chemical compositions.

reductions at national level that should be achieved for PM10 (PM2.5) refers to particles with a diameter of 10 (2.5)

main pollutants. micrometres or less. PM is emitted from many anthropogenic

sources, including both combustion and non-combustion sources.

The emission of several air pollutants has decreased 56 Low level ozone is produced by photochemical action and it is also a

significantly in Hungary 53 . Reductions between 1990 and greenhouse gas.

2014 for sulphur oxides (-97%), nitrogen oxides (-50%), 57 NOx is emitted during fuel combustion e.g. from industrial facilities

ammonia (-47%) as well as volatile organic compounds and the road transport sector. NOx is a group of gases comprising nitrogen monoxide (NO) and nitrogen dioxide (NO2).

58 European Environment Agency, 2016. Air Quality in Europe – 2016 Report . (Table 10.2, see details in this report as regards the

52 European Commission, 2016. Air Quality Standards underpinning methodology)

53 See EIONET Central Data Repository and Air pollutant emissions data 59 Based on European Environment Agency, 2016. Air Quality in Europe viewer (NEC Directive) – 2016 Report . (Figures 4.1, 5.1 and 6.1)

Hungary 14

have been registered for nitrogen dioxide (NO 2 ) in two air quality zones (Budapest and Pécs) and for particulate matter (PM 10 ) in three air quality zones (including

Budapest). Furthermore, one air quality zone has Noise

indicated exceedances regarding fine particulate matter

(PM The Environmental Noise Directive provides for a 2.5 ), for which the limit value has become binding only in 2015. Target values for benzo(a)pyrene are common approach for the avoidance, prevention and exceeded in seven air quality zones. For several air reduction of harmful effects due to exposure to quality zones the target values and long-term objectives environmental noise.

regarding ozone concentrations are also not met 60 . Excessive noise is one of the main causes of health

The persistent breaches of air quality requirements (for issues

64 . To alleviate this, the EU acquis sets out several

PM requirements, including assessing the exposure to 10 and NO 2 ), which have severe negative effects on health and environment, are being followed up by the environmental noise through noise mapping, ensuring European Commission through infringement procedures that information on environmental noise and its effects is covering all the Member States concerned, including made available to the public, and adopting action plans Hungary. The aim is that adequate measures are put in with a view to preventing and reducing environmental place to bring all zones into compliance. In response, noise where necessary and to preserving the acoustic Government Decree No 1330 of 12 October 2011 on the environment quality where it is good.

Cross-Sectoral Action Programme for the Reduction of There have been delays in the implementation of key

PM 10 was adopted and is now being implemented 61 . obligations under the Noise Directive 65 in Hungary, in

It is estimated that the health-related external costs from particular as regards the adoption of noise maps and air pollution in Hungary are above EUR 5 billion/year action plans. For example, as of January 2016, the (income adjusted, 2010), which include not only the relevant noise map and action plan had still not been intrinsic value of living a full health life but also direct drawn up for the Budapest agglomeration

66 and the

costs to the economy. These direct economic costs relate relevant action plans were also missing for the major to 3 million workdays lost each year due to sickness roads and major railways

67 located in the territory of the

related to air pollution, with associated costs for country.

employers of EUR 239 million/year (income adjusted,

2010), for healthcare of above EUR 18 million/year Water quality and management

(income adjusted, 2010), and for agriculture (crop losses)

of EUR 63 million/year (2010) 62 . The EU water policy and legislation require that the impact of pressures on transitional, coastal and fresh

Suggested action waters (including surface and ground waters) is

• Maintain downward emissions trends of air pollutants significantly reduced to achieve, maintain or enhance in order to achieve full compliance with air quality limit good status of water bodies, as defined by the Water values - and reduce adverse air pollution impacts on Framework Directive; that citizens throughout the Union health, environment and economy. benefit from high standards for safe drinking and bathing

• Reduce nitrogen oxide (NO water; and that the nutrient cycle (nitrogen and x ) emissions to comply with currently applicable national emission ceilings 63 and/or phosphorus) is managed in a more sustainable and to reduce nitrogen dioxide (NO 2 ) (and ozone resource-efficient way.

concentrations), inter alia, by reducing transport SDG 6 encourages countries to ensure availability and related emissions - in particular in urban areas. sustainable management of water and sanitation for all.

• Reduce PM 10 emission and concentration, inter alia, by reducing emissions related to energy and heat

generation using solid fuels, to transport and to 64 WHO/JRC, 2011, Burden of disease from environmental noise,

agriculture. Fritschi, L., Brown, A.L., Kim, R., Schwela, D., Kephalopoulos, S. (eds), World Health Organization, Regional Office for Europe , Copenhagen,

Denmark 65 The Noise Directive requires Member States to prepare and publish,

60 See The EEA/Eionet Air Quality Portal and the related Central Data every 5 years, noise maps and noise management action plans for

Repository agglomerations with more than 100,000 inhabitants, and for major 61 PM

10 csökkentési program roads, railways and airports.

62 These figures are based on the Impact Assessment for the European 66 The relevant noise map for this agglomeration was due to be in force

Commission Integrated Clean Air Package (2013) by 30 June 2012, according to the first subparagraph of Article 7(2) of

63 Under the provisions of the revised National Emission Ceilings the Directive, and the relevant action plan was due to be in force by

Directive, Member States now may apply for emission inventory 18 July 2013 according to Article 8(2) of the Directive.

adjustments. Pending evaluation of any adjustment application, 67 The relevant action plans for the major roads and major railways

Member States should keep emissions under close control with a were also due to be in force by 18 July 2013 according to Article 8(2) view to further reductions. of the Directive.

Hungary 15

The main overall objective of EU water policy and The main pressures on Hungarian surface waters are river legislation is to ensure access to good quality water in management, flow regulation and morphological sufficient quantity for all Europeans. The EU water alterations with 81% and 50% of water bodies affected by

acquis 68 seeks to ensure good status of all water bodies these pressures respectively. Diffuse pollution 75 affects

across Europe by addressing pollution sources (from e.g. 24% and point sources of pollution 17% of surface water agriculture, urban areas and industrial activities), physical bodies while abstraction affects only 8%. and hydrological modifications to water bodies) and the

management of risks of flooding. The Hungarian RBMP1 has a number of deficiencies that result in uncertainties about the status, pressures and

River Basin Management Plans (RBMPs) are a effectiveness of the Programme of Measures. In requirement of the Water Framework Directive and a particular there were weaknesses in monitoring and means of achieving the protection, improvement and methods for assessment and classification of the status sustainable use of the water environment across Europe. meaning that a very high proportion of water bodies

This includes surface freshwaters such as lakes and rivers, have unknown status 76 . A number of exemptions were

groundwater, estuaries and coastal waters up to one applied without transparent justification. It was not clear nautical mile. to what extent new modifications were assessed

Hungary has provided information to the Commission according to Article 4(7) of the Water Framework from its second generation of RBMPs. However, as the Directive. The Programmes of Measures do not fully Commission has not yet been able to validate this address the implementation gap and they are expected information for all Member States, it is not reported to result only in a slight improvement by 1% of the

here. ecological status of natural surface water bodies, and artificial and heavily modified bodies 77 .

In its first generation of RBMPs 69 (RBMP1), Hungary

reported the status of 869 rivers, 213 lakes and 185 As regards drinking water, Hungary reaches very high groundwater bodies. Only 11% of natural surface water compliance rates of 99-100% for microbiological bodies achieve a good or high ecological status 70 (while parameters. It also demonstrates 98.6% and 97.1% the status of 30% is unknown) and 9% of heavily modified compliance rates with chemical and indicator parameters or artificial water bodies 71 achieve a good or high laid down in the Drinking Water Directive

78 . At the same

ecological potential (45% unknown). Only 3% of surface time, the Commission is closely following up on the nonwater bodies (95% unknown), 3% of heavily modified and compliance with other specific parameters of the artificial water bodies (94% unknown) and 80% of Directive (Arsenic, Boron and Fluoride) of a large number groundwater bodies achieve good chemical status 72 . of water supply zones, due to natural conditions and the Furthermore, 85% of groundwater bodies 73 are in good measures taken to address these by 2018.

quantitative status 74 . As shown in Figure 10, in 2015, in Hungary out of 246

bathing waters, 68.7 % were of excellent quality, 11.8 % were of good quality, 2.4 % of sufficient quality. Only one

68 This includes the Bathing Waters Directive (2006/7/EC); the Urban bathing water was of poor quality or non-compliant while

Waste Water Treatment Directive (91/271/EEC) concerning

discharges of municipal and some industrial waste waters; the it was not possible to assess the remaining 41 bathing

Drinking Water Directive (98/83/EC) concerning potable water waters

79 . Figure 10 depicts a gradual increase in excellent quality; the Water Framework Directive (2000/60/EC) concerning quality of bathing waters since 2013.

water resources management; the Nitrates Directive (91/676/EEC)

and the Floods Directive (2007/60/EC) Nitrates vulnerable zones established under the Nitrates

69 Commission Staff Working Document (SWD (2012)379 final) Directive covered more than 50% of the Hungarian

70 Good ecological status is defined in the Water Framework Directive, in terms of the quality of the biological community, the hydrological characteristics and the chemical characteristics.

71 Many European river basins and waters have been altered by human activities, such as land drainage, flood protection and building of detected on data management and methods in the RBMP2 for dams to create reservoirs. decreasing information gap.

72 Good chemical status is defined in the Water Framework Directive in 75 Diffuse pollution comes from widespread activities with no one

terms of compliance with all the quality standards established for discrete source, e.g. acid rain, pesticides, urban run-off, etc.

chemical substances at European level. 76 More information on the implementation status and more specific 73 For groundwater, a precautionary approach has been taken that recommendations can be found at European Commission, Water

comprises a prohibition on direct discharges to groundwater, and a Framework Directive Implementation Reports requirement to monitor groundwater bodies. 77 According to the Hungarian authorities, the expected improvement is

74 According to the Hungarian authorities, the RBMP2 2% in case of rivers, and +3% in case of lakes until 2015.

( http://www.vizugy.hu/index.php?module=vizstrat&programelemid= 78 Commission's Synthesis Report on the Quality of Drinking Water in

149 ; submitted to the Commission in 2016) evaluates altogether the Union examining Member States' reports for the 2011-2013 1078 surface water bodies, reducing the proportion of unknown period, foreseen under Article 13(5) of Directive 98/83/EC i; ecological status down to 11%, the unknown chemical status to COM(2016)666 i 46.5%. 85.4% of the evaluated surface water bodies are in good 79 European Environment Agency, 2016. European bathing water quality status from chemical aspect. A significant improvement can be in 2015 , p. 26

Hungary 16

territory 80 . The 2008-2011 reporting showed that, The river bank-filtered resources are generally of good

overall, water quality remained relatively stable over the quality and quantity. However, they are dependent on last years for what concerns nitrate concentrations. river morphology developments. Subsurface water However, nitrate levels and eutrophication are still a resources are the key source of drinking water supply (up matter of concerns for many water bodies. to 95%). There are local resource constraints with respect

Concerning the implementation of the Urban Waste to the volume of extraction. Shallow subsurface sources

Water Treatment Directive, the final deadline set in are often polluted, especially from agricultural sources

83

Hungary's Accession Treaty to reach compliance was 31 and from the settlements which have had no waste

December 2015. However, following an agreement water collecting system until recently (communal between Hungary and Romania, Hungary decided to sources).

apply more stringent treatment of waste water based on In the RBMP1 Hungary considered water services only

Article 5(4) of the Directive, over its whole territory by 31 those delivered by water providers. Environmental and

December 2018. For the moment, the requirements resource costs, including those generated by diffuse and regarding more stringent treatment only apply in the point sources, have not been calculated but they are three areas designated as sensitive in 2004. However, as claimed to be internalised via existing policy instruments of 2018 Hungary needs to ensure a reduction of 75% of (waste water charges, water abstraction charges). the load entering treatment plants for nitrogen and Moreover, water and sewerage tariffs were frozen in phosphorus, over its whole territory. According to the 2012 and were decreased by law in 2013. In the latest data available (2014) the percentage of reduction Environment and Energy Efficiency Operational

of the load entering treatment plants was 80,23 % for Programme (EEEOP) 2014-20 84 , an action plan has been

nitrogen and 83,46 % for phosphorus by the end of 2014. proposed in order to review the water pricing policy to

Out of 34 countries worldwide, Hungary is ranked 32nd reflect cost recovery obligations under the Water for use of renewable water sources 81 . Water resources in Framework Directive. A modified tariff methodology is Hungary show regional and seasonal limitations, which currently under development.

may escalate with climate change (causing also changes A 2016 study 85 suggests that increasing the existing

in water consumption patterns). Urban heat waves are a water abstraction fees, and introducing an additional tax specified vulnerability for Hungary that could have a on water abstracted for agricultural uses, would further direct connection to water utilities. Better management improve efficiency in the usage of water. of precipitation with the creation of storage facilities to

meet non-drinking water needs are envisaged to reduce Hungary is hit regularly by flooding incidents, and is likely

this vulnerability. to experience large flood damages and increased relative economic impacts by the end of this century. Significant

Figure 10: Bathing water quality 2012 – 2015 82 benefits have been identified for Hungary from

upgrading protection levels to the future 100-year flood event (adaptation scenario). Management and prevention of floods is an area where potentially more economical nature-based solutions could improve

resource efficiency through reducing costs 86 and delivering multiple benefits 87 .

Green Infrastructure is part of the response and should

83 Water and wastewater services in the Danube Region , World Bank,

May 2015. 84 European Commission, Environmental and Energy Efficiency OP

Hungary , p.168-169. 85 Eunomia Research and Consulting, IEEP, Aarhus University, ENT,

2016. Study on Assessing the Environmental Fiscal Reform Potential for the EU28

86 It is estimated that between 2002 and 2013, for the 10 floods recorded the total direct costs were €2,700 million. RPA Risk and Policy Analysts, 2014. Study on Economic and Social Benefits of Environmental Protection and Resource Efficiency related to the European Semester ; (damages only found for 5 out of 10 floods,

80 According to the Hungarian authorities, in 2016 the Nitrates damages extrapolated across all 10 floods). The average cost per

vulnerable zones is about 70%. flood was €270 million (based on those floods that are sufficient to

81 Christian Kroll, 2015. Sustainable Development Goals: Are the rich exceed the threshold for inclusion in the EM-DAT database). countries ready? p.33. 87 RPA Risk and Policy Analysts, 2014. Study on Economic and Social

82 European Environment Agency, 2016. State of bathing water country Benefits of Environmental Protection and Resource Efficiency related report Hungary to the European Semester, Annex I Country fiches

Hungary 17

be maintained, improved and restored. The Hungarian conservation.

Partnership Agreement (PA) provides references to

natural water retention measures, nature-based SDG11 aims at making cities and human settlements solutions and Green Infrastructure (habitat protection inclusive, safe, resilient and sustainable.

and ecosystem - floodplains - restoration) 88 . According to Europe is a Union of cities and towns; around 75% of the the PA, the magnitude of the flood risk areas and inland EU population are living in urban areas. 90 The urban waters is close to 50% of the country's territory. The environment poses particular challenges for the flood measures protect national wealth responsible for environment and human health, whilst also providing about one-third of GDP. In the EEEOP 2014-20, Hungary opportunities and efficiency gains in the use of resources. is planning to invest in improving the conditions required for the sustainable management of water resources and improving the conditions of protection against damages of floods.

The Vásárhelyi Plan which provided a national framework for the flood management investments in Hungary since

1999, was revised in October 2003 89 . The principle of the

revised Vásárhelyi Plan is for potentially damaging surplus floodwater to be diverted - in a controlled way - into retention reservoirs constructed along the river, precisely for this purpose. However, the currently observed focus, which is limited to implementing individual EU-funded projects and to classical flood protection measures, could undermine the comprehensiveness of the programme in the longer term. Cohesion Policy cannot finance the entire scope of the revised Vásárhelyi Plan, in particular the specific agricultural subsidy schemes necessary to support the desired management of floodplains, and so

complementary national funds will be needed. The Member States, European institutions, cities and

Suggested action stakeholders have prepared a new Urban Agenda for the

• Build up the necessary infrastructure to achieve EU (incorporating the Smart Cities initiative) to tackle compliance with the Drinking Water Directive and the these issues in a comprehensive way, including their Urban Waste Water Treatment Directive. connections with social and economic challenges. At the • Improve monitoring and status assessment so that the heart of this Urban Agenda will be the development of

Programme of Measures reliably addresses all the twelve partnerships on the identified urban challenges, relevant pressures and implementation gaps. Measures including air quality and housing

91 .

should be properly financed. The European Commission will launch a new EU

• Assess properly new modifications of water bodies benchmark system in 2017 92 .

according to Article 4(7) of the Water Framework The EU stimulates green cities through awards and

Directive. funding, such as the EU Green Capital Award aimed at

• Implement an efficient tariff policy to ensure cost cities with more than 100,000 inhabitants and the EU

recovery. Green Leaf initiative aimed at cities and towns, with

• Focus on nature-based retention measures when between 20,000 and 100,000 inhabitants. The city of Pécs

implementing flood protection projects. (with 150,000 inhabitants) figures among the applicant

cities for the European Green Capital Award 2017.

Enhancing the sustainability of cities Hungary has allocated EUR 537.84 million (5% of its

The EU Policy on the urban environment encourages allocation under the European Regional Development cities to implement policies for sustainable urban planning and design, including innovative approaches for urban public transport and mobility, sustainable 90 European Environment Agency, Urban environment

buildings, energy efficiency and urban biodiversity 91 http://urbanagendaforthe.eu/ 92 The Commission is developing an Urban Benchmarking and

Monitoring ('UBaM') tool to be launched in 2017. Best practices

88 Partnership Agreement of Hungary for the 2014–2020 programming emerge and these will be better disseminated via the app featuring

period p. 33-35, 87. the UBaM tool, and increasingly via e.g. EUROCITIES, ICLEI, CEMR,

89 Act No LXVII of 2004 Committee of the Regions, Covenant of Mayors and others.

Hungary 18

Fund), excluding technical assistance, to sustainable many commitments contained already in legally binding urban development. agreements.

Sustainability of urban areas is dependent on bringing The fact that some Member States did not sign and/or pollution under control, of which air and water are the ratify a number of MEAs compromises environmental most relevant in case of Hungary. In 2012, road traffic implementation, including within the Union, as well as was responsible for 41% of the NO X emissions, and the Union’s credibility in related negotiations and particulate matter (PM) emissions from traffic are also a international meetings where supporting the concern. Hungary had 55% of the urban population participation of third countries to such agreements is an resident in areas exposed to PM 10 concentrations over established EU policy objective. In agreements where the daily limit value, substantially worse than the EU voting takes place it has a direct impact on the number of

average of 21.5% 93,94 . The latest available data (2011) votes to be cast by the EU.

showed that collection of waste water was ensured in all

agglomerations, but adequate treatment of waste water Hungary is performing as one of the best in the EU with collected was still due in 16% of the urban regard to signing and ratifying such agreements.

agglomerations 95 .

In Budapest and in other Hungarian cities, new construction projects started in recent years have destroyed too many full grown trees. Even if new trees are planted to replace them, it will take several decades before they offer the same ecosystem services (e.g. filtering and cooling the air) as the ones that were cut.

The unauthorised cutting of trees is also widespread.

Green areas tend to be replaced by underground installations (e.g. parkings) with a thin layer of soil and with buildings with green roofs, again resulting in a reduction of ecosystem services. Better urban planning and stricter enforcement are needed that focus on the preservation of trees and green areas.

International agreements

The EU Treaties require that the Union policy on the environment promotes measures at the international level to deal with regional or worldwide environmental problems.

Most environmental problems have a transboundary nature and often a global scope and they can only be addressed effectively through international co-operation.

International environmental agreements concluded by the Union are binding upon the institutions of the Union and on its Member States. This requires the EU and the

Member States to sign, ratify and effectively implement all relevant multilateral environmental agreements

(MEAs) in a timely manner. This will also be an important contribution towards the achievement of the SDGs, which Member States committed to in 2015 and include

93 European Environment Agency, 2015. Air Quality in Europe – 2015

Report . EEA Report 5/2014, table 4.4, p.55 94 The Hungarian Government announced in September 2016 plans to

spread electric cars and develop the e-charging infrastructure in Hungary. It would contribute to the achievement of the clean city aims, according to the Jedlik Ányos Plan.

95 European Commission, Eighth Report on the Implementation Status

and the Programmes for Implementation of the Urban Waste Water Directive (COM (2016)105 final) and Commission Staff Working Document accompanying the report (SWD(2016)45 final ).

Hungary 19

Part II: Enabling Framework: Implementation Tools

• 4. 

  Market based instruments and investment

Green taxation and environmentally harmful cars 101 . The motor vehicle tax, characterised by a

subsidies shrinking rate according to age of the vehicle, is clearly not based on environmental factors.

The Circular Economy Action Plan encourages the use of

financial incentives and economic instruments, such as Figure 11: Environmental tax revenues as a share of taxation to ensure that product prices better reflect total revenues from taxes and social contributions environmental costs. The phasing out of environmentally (excluding imputed social contributions) in 2014

102

harmful subsidies is monitored in the context of the

European Semester and in national reform programmes submitted by Member States.

Taxing pollution and resource use can generate increased revenue and bring important social and environmental benefits.

Hungary has environmental tax revenues amounting to

2.6% of GDP in 2014 (slightly above the EU28 average:

2.46%) 96 . In the same year, environmental tax revenue

accounts for 6.79% of total revenues from taxes and social contributions in the same year (EU28 average: 6.35%) as shown in Figure 11.

Hungary figures amongst the five Member States that have introduced or increased taxes on pollution and

resources. 97 In particular, a landfill tax for non-hazardous waste was introduced in 2013 with a rate of EUR10/t 98 .

Despite persistently low energy prices, Hungary is not levying excise duties on the supply of energy and electricity to non-business customers. The excise duty

regulation changed from September 2016 99 and excise

duty on petrol, diesel and petroleum (which earlier was fixed barely over the minimum rate, among the lowest in the EU) had been directly linked to global price of oil. If global price of oil stays above USD 50, the excise duty on petrol, diesel and petroleum unchanged and fuel taxed with original tax rate (valid before September 2016).

Excise duty rate increase on fuel by HUF 10 for diesel and In this context, a 2016 study suggests that there is HUF 5 for petrol and petroleum if the global price of oil considerable potential for shifting taxes from labour to

reach or drops under threshold. environmental taxes 103 . Under a good practice

Hungary does not fully exploit the economic instruments, scenario

104 , these could generate an additional EUR 0.65

although recently there have been a number of increases billion in 2018, rising to EUR 1.21 billion in 2030 (both in

in the field of environmental taxation 100 .

101 The annual motor vehicle tax is deductible from the company car tax

The Hungarian tax system is still characterised by some 102 Eurostat, Environmental tax revenues , accessed October 2016 environmentally harmful subsidies (EHSs), including the 103 Eunomia Research and Consulting, IEEP, Aarhus University, ENT,

favourable tax treatment of personal use of company 2016. Study on Assessing the Environmental Fiscal Reform Potential

for the EU28. N.B. National governments are responsible for setting tax rates within the EU Single Market rules and this report is not suggesting concrete changes as to the level of environmental

96 Eurostat, Environmental tax revenues , accessed June 2016 taxation. It merely presents the findings of the 2016 study by

97 European Commission, 2015. Tax Reforms in EU Member States 2015 , Eunomia et al on the potential benefits various environmental taxes

Institutional Paper 008 Sept. 2015, pp.18-19. could bring. It is then for the national authorities to assess this study 98 It was supposed to increase to EUR40/t by 2016, but tariffs were and their concrete impacts in the national context. A first step in this

frozen by the Government in 2012. respect, already done by a number of Member States, is to set up 99 Act LXVIII of 2016 on the excise duties expert groups to assess these and make specific proposals.

100 E.g. environmental product fees were raised on a number of 104 The good practice scenario means benchmarking to a successful

Hungary 20

real 2015 terms). This is equivalent to 0.56% and 0.80% Investment Funds (ESIF) 108 is essential to achieve the of GDP in 2018 and 2030 respectively. The 2016 study environmental goals and integrate these into other policy shows the largest potential source of revenue would areas. Other instruments such as the Horizon 2020, the come from the suggested increase in vehicle (circulation) LIFE programme and the EFSI 109 may also support taxes, generating EUR 0.46 billion in 2030 (real 2015 implementation and spread of best practice.

terms), equivalent to 0.30% of GDP. The next largest

contribution to revenue comes from the proposed The global budget allocation for Cohesion Policy for the pesticides tax. This accounts for EUR 0.19 billion in 2030 2014-2020 period is EUR 21.5 billion. Hungary also (real 2015 terms), equivalent to 0.13% of GDP. receives EUR 3.45 billion for rural development (from the

European Agricultural Fund for Rural Development, EAFRD) and EUR 39.1 million for the fisheries sector

Green Public Procurement (from the European Maritime and Fisheries Fund, EMFF), see Figure 12.

The EU green public procurement policies encourage

Member States to take further steps to reach the target There are seven multi-fund (ERDF, CF, ESF) Operational of applying green procurement criteria to at least 50% of Programmes (OP) having national coverage (with the public tenders. exception of one covering only the more developed Green Public Procurement (GPP) is a process whereby central region

110 ), and one OP under the EAFRD and the

public authorities seek to procure goods, services and EMFF each. The biggest programme is the Economic works with a reduced environmental impact throughout Development and Innovation OP (co-funded by ERDF, ESF their life-cycle when compared to goods, services and and Youth Employment Initiative, YEI) with the allocation works with the same primary function that would of EUR 7.73 billion EU fund.

otherwise be procured. An amount of EUR 3 billion is foreseen for environmental

The purchasing power of public procurement equals to investment in the 2014-20 period, which represents approximately 14% of GDP 105 . A substantial part of this 13.9% of the total allocation under the Cohesion Policy. money is spent on sectors with high environmental The environmental priorities are included in the EEEOP impact such as construction or transport, so GPP can help (EUR 3.22 billion from ERDF and CF). Hungary envisages to significantly lower the impact of public spending and co-financing flood protection and climate adaptation, foster sustainable innovative businesses. The infrastructure in the water, wastewater and waste

Commission has proposed EU GPP criteria 106 . sectors, improvement of nature protection, and increase of energy efficiency. Projects aimed specifically at

Hungary has not yet adopted the National Action Plan for improving air quality are not included.

GPP. The EAFRD part of the national Rural Development

According to a 2010 study 107 , the share of Hungarian Program (RDP) of Hungary amounts to EUR 3.45 billion. authorities that included GPP requirements in 50% to Hungary has used the possibility to transfer funds from 100% of their contracts was estimated at between 10- Pillar II (EAFRD) to Pillar I (direct payments) at the level of 20%. 15% (for years 2016-20). The budget for agrienvironmental-climate

measure represents 15% of the

Investments: the contribution of EU funds total EAFRD budget.

European Structural and Investment Funds Regulations As regards water management, support in RDP is provide that Member States promote environment and channelled to support irrigation investments, with a 5% climate objectives in their funding strategies and or 10% minimum potential water savings. Water programmes for economic, social and territorial metering systems need to become part of the investment cohesion, rural development and maritime policy, and supported, if this is not already in place. Hungary plans to reinforce the capacity of implementing bodies to deliver support natural water-retention measures with the cost-effective and sustainable investments in these areas. EAFRD and RDP.

Making good use of the European Structural and Concerning the ex-ante conditionalities, the specific one

108 ESIF comprises five funds – the European Regional Development 105 European Commission, 2015. Green public procurement Funds (ERDF), the Cohesion Fund (CF), the European Social Fund 106 In the Communication “Public procurement for a better (ESF), the European Agricultural Fund for Rural Development

environment” (COM /2008/400) the Commission recommended the (EAFRD), and the European Maritime and Fisheries Fund (EMFF). The creation of a process for setting common GPP criteria. The basic ERDF, the CF and the ESF together form the Cohesion Policy funds. concept of GPP relies on having clear, verifiable, justifiable and 109 European Investment Bank, 2016 European Fund for Strategic ambitious environmental criteria for products and services, based on Investments a life-cycle approach and scientific evidence base. 110 Central Hungary region (including Budapest) is classified as a "more

107 Adelphi et al, Strategic Use of Public Procurement in Europe' (2011) developed region", all the other regions are "less developed".

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on water is considered as partially fulfilled as both the

RBMP and the water pricing policy have shortcomings.

Therefore an Action Plan addressing these was submitted to the Commission.

Figure 12: European Structural and Investment Funds

2014-2020: Budget Hungary by theme, EUR billion 111

It is too early to draw conclusions as regards the use and results of ESIF funds for the period 2014-20, as the relevant programmes are still in an early stage of their implementation.

Current data suggest that the overall use of cohesion policy funds for the 2007-2013 period are already close

to 92%. 112

Governmental resources to support NGOs active on environmental issues have reportedly decreased over the last few years. In this context, the Hungarian authorities could more actively support interested organizations to apply for and implement LIFE integrated projects of common interest.

111 European Commission, European Structural and Investment Funds

Data By Country 112 Final data for the period 2007-2013 will only be available at the end

of 2017.

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• 5. 

  Effective governance and knowledge

SDG 16 aims at providing access to justice and building Capacity to implement rules

effective, accountable and inclusive institutions at all

levels. SDG 17 aims at better implementation, improving It is crucial that central, regional and local policy coordination and policy coherence, stimulating administrations have the necessary capacities and skills science, technology and innovation, establishing and training to carry out their own tasks and co-operate

partnerships and developing measurements of progress. and co-ordinate effectively with each other, within a system of multi-level governance.

Effective governance of EU environmental legislation and

policies requires having an appropriate institutional Hungary performs below the EU average regarding fastframework, policy coherence and coordination, applying changing legislation, the complexity of administrative legal and non-legal instruments, engaging with nonprocedures and e-government services for businesses. governmental stakeholders, and having adequate levels The World Bank 2015 Worldwide Governance Indicators of knowledge and skills 113 . Successful implementation show that the governance score of Hungary for the depends, to a large extent, on central, regional and local regulatory quality indicator is below the EU average and government fulfilling key legislative and administrative has deteriorated since 2006

114 .

tasks, notably adoption of sound implementing

legislation, co-ordinated action to meet environmental The 2013 European Quality of Government Index puts objectives and correct decision-making on matters such Hungary in 21st place out of the 28 Member States

115 .

as industrial permits. Beyond fulfilment of these tasks, governments must intervene to ensure day-to-day compliance by economic operators, utilities and individuals ("compliance assurance"). Civil society also has a role to play, including through legal action. To underpin the roles of all actors, it is crucial to collect and share knowledge and evidence on the state of the environment and on environmental pressures, drivers and impacts.

Equally, effective governance of EU environmental legislation and policies benefits from a dialogue within Member States and between Member States and the Commission on whether the current EU environmental

legislation is fit for purpose. Legislation can only be Impact assessments are important tools to ensure properly implemented when it takes into account environmental integration in all government policies. 116

experiences at Member State level with putting EU

commitments into effect. The Make it Work initiative, a Consultations on draft legislation tend to be non-public,

Member State driven project, established in 2014, informal and take place with selected stakeholders, and organizes a discussion on how the clarity, coherence and there are no publicly available impact assessments structure of EU environmental legislation can be underpinning legislation. For instance, on average only 46

improved without lowering existing protection standards. days elapsed between the adoption of a draft law and its publication in the official journal (Magyar Közlöny), which

Effective governance within central, regional does not allow a proper public discussion and does not and local government give enough preparation time for the affected parties.

Public consultations remained limited; the median

Those involved in implementing environment legislation number of days open for consultation was only 5 days in

at Union, national, regional and local levels need to be equipped with the knowledge, tools and capacity to improve the delivery of benefits from that legislation,

and the governance of the enforcement process. 114 The governance score denotes the estimate of governance measured

on a scale from approximately -2.5 to 2.5. Higher values correspond to better governance. Hungary scored 1.21 in 2006 and 0.77 in 2014. The EU average was 1.17 in 2014.

115 Charron N., 2013. European Quality of Government Index (EQI) 116 Article 11 of the TFEU provides that "Environmental protection

113 The Commission has work ongoing to improve the country-specific requirements must be integrated into the definition and

knowledge about quality and functioning of the administrative implementation of the Union's policies and activities, in particular systems of Member States. with a view to promoting sustainable development."

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2014 and 3.5 days in 2015 117 . coordinated and controlled by the National Inspectorate

As regards environmental impact assessments of for Environment and Nature Protection as a second projects, Hungary has relied on several occasions on a instance authority. From 1 January 2017, the National special procedure, called environmental performance Inspectorate will also be merged into the Government evaluation 118 , which provides an ex post assessment of Offices as regards environmental administration in an existing or ongoing project, instead of carrying out an general, and into the Agriculture Ministry as regards impact assessment before the project is authorised and waste management issues in particular. It is essential to integrate properly the environmental concerns in the ensure that irrespective of the formula chosen,

development consent. environmental impacts of projects or policy decisions are fully and effectively taken into account in any relevant

Suggested action consent procedures

120 .

• Ensure increased partnership and transparency all over The transposition of the revised EIA Directive

121 will be an

the public administration and strengthen public opportunity to streamline the regulatory framework on participation in decision-making relating to environmental assessments. The Commission encourages environmental matters. the streamlining of the environmental assessments to • Make greater use of impact assessments of draft avoid overlaps in environmental assessments and

legislation, covering in particular environmental accelerate decision-making, without compromising the quality of the environmental assessment procedure. The

impacts. Commission has issued a guidance document in 2016 122

Coordination and integration regarding the setting up of coordinated and/or joint procedures that are simultaneously subject to

Hungary has a National Sustainable Development assessments under the EIA Directive, Habitats Directive,

Strategy Framework (2012-2024) since March 2013 119 . Water Framework Directive, and the Industrial Emissions

Directive. The primary responsibility for environmental issues and

for the implementation of most EU environmental Suggested action

legislation is delegated to the Ministry of Agriculture.

Within the Ministry, the State Secretariat for • Address the fragmented governance of environmental

Environmental affairs, agricultural development and topics and increase integration of environmental

Hungaricums (specific national products) is the central aspects into other policies. governing body for environmental protection and nature • Establish a clear and transparent process for the conservation. The task of the State Secretariat is the authorization of activities and facilities that have promotion of sustainable development, the preservation impact on the environment.

of air and soil quality, and the protection of natural

assets. Compliance assurance

The fragmented governance of environmental topics EU law generally and specific provisions on inspections, among the various ministries may further reduce the other checks, penalties and environmental liability help effectiveness of the measures. This may be particularly lay the basis for the systems Member States need to evidenced by the fact that the Ministry for National have in place to secure compliance with EU Economy bears responsibility for the implementation of environmental rules.

the circular economy package; the Ministry of National Public authorities help ensure accountability of duty

Development - for environmental technologies, for the holders by monitoring and promoting compliance and by designation of the public waste management services fee taking credible follow-up action (i.e. enforcement) when and for energy efficiency; the Ministry of Agriculture - for breaches occur or liabilities arise. Compliance monitoring waste management, and the Ministry of Interior - for can be done both on the initiative of authorities water management and for water protection. themselves and in response to citizen complaints. It can

From 1 April 2015, the regional Environment and Nature involve using various kinds of checks, including

Protection Inspectorates were merged into County

Government Offices. Their environmental tasks are 120 While the restructuring of the environmental administration system

may in principle lead to better integration of the environmental concerns, it has been criticised as prone to weaken environmental

117 Corvinus University, Corruption Research Center, Budapest, 2016. protection.

'The Quality of Hungarian Legislation 2015'. 121 The transposition of Directive 2014/52 i/EU is due in May 2017. 118 As laid down in Article 77 of Act No. LIII of 1995 on Environmental 122 European Commission, 2016. Commission notice — Commission

Protection . guidance document on streamlining environmental assessments

119 18/2013. (III. 28.) OGY határozat a Nemzeti Fenntartható Fejlődés conducted under Article 2(3) of the Environmental Impact

Keretstratégiáról ; National Framework Strategy on Sustainable Assessment Directive (Directive 2011/92 i/EU of the European Development of Hungary Parliament and of the Council, as amended by Directive 2014/52 i/EU).

Hungary 24

inspections for permitted activities, surveillance for State. possible illegal activities, investigations for crimes and

audits for systemic weaknesses. Similarly, there is a range For each Member State, the following were therefore of means to promote compliance, including awarenessreviewed: use of risk-based compliance assurance; raising campaigns and use of guidance documents and coordination and co-operation between authorities and online information tools. Follow-up to breaches and participation in pan-European networks; and key aspects liabilities can include administrative action (e.g. of implementation of the ELD based on the Commission's withdrawal of a permit), use of criminal law 123 and action recently published implementation report and REFIT under liability law (e.g. required remediation after evaluation.

129

damage from an accident using liability rules) and Over the last decade, Hungary has made efforts to contractual law (e.g. measures to require compliance improve its system of inspections of industrial facilities. with nature conservation contracts). Taken together, all Some relevant data collection and analysis are of these interventions represent "compliance assurance" undertaken and annual activity reports are prepared. as shown in Figure 13. Some basic risk criteria are used for planning and

Figure 13: Environmental compliance assurance targeting of inspection work

130 .

Up-to-date information is lacking in relation to the following: − data-collection arrangements to track the use and effectiveness of different compliance assurance interventions; − the extent to which risk-based methods are used to direct compliance assurance at the strategic level and in relation to critical activities outside of industrial installations, especially specific problemareas highlighted elsewhere in this Country Report, i.e. the threats to protected habitat types and species, poor air quality and the pressures on water quality from diffuse and point sources of pollution. − how the Hungarian authorities ensure a targeted and

Best practice has moved towards a risk-based approach proportionate response to different types of nonat strategic and operational levels in which the best mix compliant behaviour, in particular in relation to of compliance monitoring, promotion and enforcement is serious breaches detected. directed at the most serious problems. Best practice also recognises the need for coordination and cooperation Hungary is active within EUFJE and participates in some between different authorities to ensure consistency, IMPEL activities. avoid duplication of work and reduce administrative

burden. Active participation in established pan-European For the period 2007-2013, Hungary reported 563 cases networks of inspectors, police, prosecutors and judges, dealt with under the ELD, the highest number of any such as IMPEL 124 , EUFJE 125 , ENPE 126 and EnviCrimeNet 127 , Member State. The importance that the country attaches is a valuable tool for sharing experience and good to the Directive could be further enhanced by the

practices. adoption of guidance, as well as by additional measures to ensure effective financial security (to pay for

Currently, there exist a number of sectoral obligations on remediation when an operator cannot). Difficulties have inspections and the EU directive on environmental been experienced with the latter. For example, the

liability (ELD) 128 provides a means of ensuring that the operator who was liable for the tragic accident that

"polluter pays principle" is applied when there are occurred in October 2010 in the alumina facility near the accidents and incidents that harm the environment. town of Ajka proved to be grossly under-insured.

There is also publicly available information giving insights

into existing strengths and weaknesses in each Member 129 COM(2016)204 final and COM(2016)121 final of 14.4.2016. This

highlighted the need for better evidence on how the directive is used in practice; for tools to support its implementation, such as guidance,

123 European Union, Environmental Crime Directive 2008/99/EC training and ELD registers; and for financial security to be available in

124 European Union Network for the Implementation and Enforcement case events or incidents generate remediation costs. of Environmental Law 130 See for details Amec Foster Wheeler Environment&Infrastructure UK

125 European Union Forum of judges for the environment Ltd in collaboration with Milieu Ltd, 2016, 'Assessment and summary

126 The European Network of Prosecutors for the Environment of the Member States' implementation reports for the IED, IPPCD,

127 EnviCrimeNet SED and WID, p. 245f., which indicates also diverging practices across

128 European Union, Environmental Liability Directive 2004/35/CE the country in relation to publication of inspection plans.

Hungary 25

Suggested action Hungarian system has shortcomings in providing the

• Improve transparency on the organisation and public, notably individuals and NGOs, legal standing functioning of compliance assurance and on how which would allow them to initiate court actions in 132 significant risks are addressed, as outlined above. environmental matters .

• Encourage greater participation of competent Suggested action

authorities in environmental compliance networks.

• Step up efforts in the implementation of the • Take the necessary measures to ensure standing in

Environmental Liability Directive (ELD) with proactive particular of environmental NGOs to challenge acts or initiatives, in particular by drafting national guidance. omissions of a public authority in all sectoral EU Hungary should moreover take further steps to ensure environmental laws, in full compliance with EU law as an effective system of financial security for well as the Convention on Access to Information, Public environmental liabilities (so that operators not only Participation in Decision-making and Access to Justice have insurance cover available to them but actually in environmental matters (Aarhus Convention).

take it up).

Access to information, knowledge and

Public participation and access to justice evidence

The Aarhus Convention, related EU legislation on public The Aarhus Convention and related EU legislation on participation and environmental impact assessment, and access to information and the sharing of spatial data the case-law of the Court of Justice require that citizens require that the public has access to clear information on and their associations should be able to participate in the environment, including on how Union environmental decision-making on projects and plans and should enjoy law is being implemented.

effective environmental access to justice. It is of crucial importance to public authorities, the public

Citizens can more effectively protect the environment if and business that environmental information is shared in they can rely on the three "pillars" of the Convention on an efficient and effective way. This covers reporting by Access to Information, Public Participation in Decisionbusinesses and public authorities and active making and Access to Justice in Environmental Matters dissemination to the public, increasingly through ("the Aarhus Convention") 131 . Public participation in the electronic means.

administrative decision making process is an important The Aarhus Convention, the Access to Environmental element to ensure that the authority takes its decision on Information Directive 133 and the INSPIRE Directive 134 the best possible basis. The Commission intends to together create a legal foundation for the sharing of examine compliance with mandatory public participation environmental information between public authorities requirements more systematically at a later stage. and with the public. They also represent the green part of

Access to justice in environmental matters is a set of the ongoing EU e-Government Action Plan

135 . The first

guarantees that allows citizens and their associations to two instruments create obligations to provide challenge acts or omissions of the public administration information to the public, both on request and actively. before a court. It is a tool for decentralised The INSPIRE Directive is a pioneering instrument for

implementation of EU environmental law. electronic data-sharing between public authorities who can vary in their data-sharing policies, e.g. on whether

For each Member State, two crucial elements for access to data is for free. The INSPIRE Directive sets up a effective access to justice have been systematically geoportal which indicates the level of shared spatial data reviewed: the legal standing for the public, including in each Member State – i.e. data related to specific NGOs and the extent to which prohibitive costs represent locations, such as air quality monitoring data. Amongst a barrier. other benefits it facilitates the public authorities'

A major challenge includes the simplification of access to reporting obligations.

justice standing rules currently differentiating between For each Member State, the accessibility of nature and environmental protection, with a special view environmental data (based on what the INSPIRE Directive

to facilitate standing for the public concerned in different environmental planning cases. The costs to bring

environmental cases to the national courts are not 132 European Commission, 2012/2013 access to justice in

considered as being prohibitively high. However, the environmental matters 133 European Union, Directive 2003/4/EC on public access to

environmental information

134 European Union, INSPIRE Directive 2007/2/EC 131 UNECE, 1998. Convention on Access to Information, Public 135 European Union, EU eGovernment Action Plan 2016-2020 -

Participation in Decision-Making and Access to Justice in Accelerating the digital transformation of government COM(2016) Environmental Matters 179 final

Hungary 26

envisages) as well as data-sharing policies ('open data')

have been systematically reviewed 136 .

Hungary's performance on the implementation of the

INSPIRE Directive as enabling framework to actively disseminate environmental information to the public is lagging behind. Hungary has indicated in the 3-yearly

INSPIRE implementation report 137 that the necessary

data-sharing policies allowing access and use of spatial data by national administrations, other Member States' administrations and EU institutions without procedural obstacles are not fully available. With the exception of a limited set of spatial data sets, the existing Hungarian data policy does not allow for free data sharing between public administrations. This prevents cooperation between the different sectors in Hungary and creates an important obstacle for data-sharing.

Assessments of monitoring reports 138 issued by Hungary

and the spatial information that Hungary has published

on the INSPIRE geoportal 139 indicate that not all spatial

information needed for the evaluation and implementation of EU environmental law has been made available or is accessible. The larger part of this missing spatial information consists of the environmental data required to be made available under the existing reporting and monitoring regulations of EU environmental law.

Suggested action

• Critically review the effectiveness of its data policies and amend them, taking 'best practices' into consideration.

• Identify and document all spatial data sets required for the implementation of environmental law, and make the data and documentation at least accessible 'as is' to other public authorities and the public through the digital services foreseen in the INSPIRE Directive.

136 Upon request by the Commission, most Member States provided an

INSPIRE Action Plan addressing implementation issues. These plans are currently being assessed by the Commission.

137 European Commission, INSPIRE reports

138 Inspire indicator trends

139 Inspire Resources Summary Report