Since taking office, the Hungarian government has made extremely significant progress to improve the social, economic and environmental condition of Hungary. Further progress would be facilitated if Hungary also supported the introduction of ETS2, which would extend the pricing of carbon dioxide emissions to transport and building heating. This was the message of five Hungarian civil society organisations to Prime Minister Péter Magyar.

The Clean Air Action Group, the Hungarian Association of Conservationists, the Climate Protection Alliance, the Green Policy Center and the Solidarity Economy Center Association explained in a letter to the Prime Minister that it is in Hungary’s fundamental interest to introduce ETS2. According to preliminary estimates, this would generate nearly HUF 500 billion in revenue for the government annually, of which at least HUF 110 billion could be net revenue for Hungary, as part of the EU revenues from ETS2 will be redistributed to less developed member states. If the Hungarian government refuses to do so, its demand for an increase in EU funds to be provided to Hungary in the next EU financial cycle (MFF 2028-2034) would be much less credible. In addition, since the introduction of ETS2 is a legal obligation in force, failure to do so may result in an EU infringement procedure and then a fine.

As several studies have shown, even the current Emissions Trading System (ETS1) has had a positive or neutral effect on the competitiveness of Member States and has generally strengthened innovation. Preliminary analyses of ETS2 suggest that ETS2, together with the appropriate use of the revenues generated from it, can further increase the competitiveness of our economy.

At the same time, ETS2 provides a significant opportunity to make significant progress towards reducing social inequalities (which has been given a prominent role in the election program of TISZA and for which the government has already taken several measures). The current tax and price system is extremely favourable to the wealthier at the expense of those in a more modest financial situation. ETS2 can greatly mitigate this injustice by using revenues expediently.

The letter to the Prime Minister can be read here.

Studies of NGOs on the topic:

• Achieving a positive impact with ETS2 (2025)

• How can Hungary's energy price regulation and ETS2 be brought into harmony?

• Would ETS2 Hurt the Economy?

• Stop Subsidising the Rich!

• Everyone must be compensated when fossil fuel prices rise

• A fairer reduction in household utility bills