Abstract
The residential sector is the largest final energy consumer and is responsible for 30% of total carbon dioxide emissions in Hungary. In order to address the general poor condition of the building stock and resulting inefficiency in energy use, from 1990 onwards, the government and local authorities initiated energy efficiency support programmes in the residential buildings sector. Furthermore, technical assistance and loan guarantee schemes by the International Finance Corporation (IFC) helped to establish a market for financing energy efficiency investments. EU funds also played a role in the modernisation of non-residential buildings. Residential energy efficiency support programmes entered a new phase in 2009 with the start of the Green Investment Scheme (GIS). While Hungary was a front-runner in establishing the legal framework for GIS, the success of early AAU sales (the financing source of the scheme) were overshadowed by reputation concerns in terms of additionality and the disbursement of funds. At the same time the GIS brought with it improved environmental integrity compared to earlier programmes in terms of monitoring and verification of results, establishing a focus on GHG emission reductions in addition to energy savings, and introducing incentives for deeper refurbishment. The aim of the paper is to provide an overview of the evolution of energy efficiency support programmes for residential buildings in the Hungarian context, pointing out prevailing problematic elements, as well as areas of improvement and good practice.
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Notes
According to the Central Statistical Office, in July 2011 the total population of Hungary was 9,985,722 (CSO 2011). According to the Central Credit Information System, in June 2011 806,000 individuals were on the official list of non-payers ( Central Credit Information System 2011). Therefore over 8% of the population was unable to make timely debt repayments.
The average HUF/EUR exchange rate for the years 2008–2009: 265.5 HUF/EUR (Hungarian National Bank). HUF 40 billion at this exchange rate = EUR 150.7 million.
In Hungary, two legal forms exist for the representation of communities of flat owners of commonly owned buildings. The more widespread form is the condominium (as described in the 2003. CXXXIII Act on Condominiums), the less common is the housing association (as described in the 2004. CXV Act on Housing Associations). Flat owners in Hungary are obliged to set up condominiums or housing associations and appoint a common representative to manage the building. At the same time (limited), social housing in Hungary is typically provided by local authorities, and not by social housing associations as it is common in Western-Europe.
AAUs—governmental emissions rights under the first commitment period (2008 to 2012) of the Kyoto Protocol (CDM Rulebook 2010).
Apart from retrofitting the existing buildings stock characterised by poor thermal performance, further suggested priority areas of GIS in CEE include biomass-based heating and activities in land-use (forestry) (Ürge-Vorsatz et al. 2008).
At the 2009 average exchange rate 280.58 HUF/EUR (Hungarian National Bank), GIS revenues amounted to a total of HUF 36.03 billion = EUR 128.4 million.
The Office of the Parliamentary Commissioner for Future Generations was set up in 2007 as the environmental ombudsman with the principal responsibility to safeguard citizens' constitutional right to a healthy environment, empowered to carry out investigations in all issues that may affect the above right (OPCFGH 2011). In Summer 2011 a bill was under discussion in the Hungarian Parliament which would significantly reduce the size and area of competence of the internationally acclaimed institution (Wates 2011).
Abbreviations
- AAU:
-
Assigned Amount Unit
- CDM:
-
Clean Development Mechanism
- CEE:
-
Central and Eastern Europe
- DH:
-
District heating
- ESCO:
-
Energy service company
- GEF:
-
Global Environment Facility
- GHG:
-
Greenhouse gas
- GIS:
-
Green Investment Scheme
- HEECP:
-
Hungary Energy Efficiency Co-financing Program
- IFC:
-
International Finance Corporation
- JI:
-
Joint Implementation
- RES:
-
Renewable Energy Sources
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Interviews
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Péter Lengyel, Housing policy expert, Kékes Ltd. Tatabánya; President of Association of Owners and Tenants Living in Condominiums, Tatabánya (30 July 2009).
Krisztina Moskovics, Project Manager for Panel Programme, Economic Development Organization Tatabánya (22 September 2009).
Acknowledgements
I would like to thank Dr. Diana Ürge-Vorsatz, Anikó Dobi-Rózsa and three anonymous reviewers for their valuable comments on this paper. Furthermore, I would like to thank interviewees for sharing their experience and taking the time to participate in the interview conversations.
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Czakó, V. Evolution of Hungarian residential energy efficiency support programmes: road to and operation under the Green Investment Scheme. Energy Efficiency 5, 163–178 (2012). https://doi.org/10.1007/s12053-011-9135-5
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DOI: https://doi.org/10.1007/s12053-011-9135-5