WORKING PAPER GREEN INVESTMENT SCHEME: CASE STUDY ON HUNGARY

The document analyzes Hungary's implementation of a Green Investment Scheme (GIS) to utilize revenues from the sale of Assigned Amount Units (AAUs) for greenhouse gas mitigation. It details the legal framework established by Act LX of 2007 and Government Decree 323/2007, emphasizing a 'hard greening' approach where funds are invested in projects with measurable emission reductions. The paper focuses heavily on the buildings sector, proposing a programmatic approach to bundle small-scale energy efficiency projects that are typically ineligible for Joint Implementation (JI) due to high transaction costs. It outlines a subsidy system based on energy labeling (Categories C to A++) and provides financial assessments for retrofits and new constructions, while comparing energy efficiency experiences across Central and Eastern European countries.

• Hungary established a legal basis for its Green Investment Scheme (GIS) through Act LX of 2007 and Government Decree 323/2007, which define the conditions for selling AAUs and the use of resulting revenues.
• The Hungarian government adopted a 'hard greening' strategy, requiring that all GIS activities result in quantifiable and verifiable emission reductions, which excludes 'soft greening' activities.
• To manage different project scales, Hungary utilizes a dual architecture: a 'program window' for bundling small-scale projects (e.g., house insulation, public lighting) to reduce transaction costs, and a 'project window' for large, innovative, or complex mitigation projects.
• The buildings sector is a priority for GIS because the residential sector accounts for approximately one-third of Hungary's total national CO2 emissions.
• Hungary's GIS for buildings employs a subsidy system based on energy performance labels (ranging from I to A++), where higher energy efficiency ratings trigger higher monetary support.
• The GIS is designed to complement existing national and EU energy efficiency programs by providing 'bonus' or co-financing for projects that are weakly supported by other policies or are ineligible for Joint Implementation (JI).
• Verification procedures are differentiated by project size: small projects undergo reporting and random checks, while large or complex projects require third-party verification according to the ISO 14064 standard.
• In September and November 2008, Hungary sold carbon credits to Belgium (2 million AAUs) and Spain (6.6 million AAUs), with the Belgian deal price estimated around €14-15 per unit.
• A comparative review of Central and Eastern European (CEE) countries indicates that while there are similarities in energy efficiency needs, there are significant differences in baseline setting and monitoring and verification (M&V) requirements.

APA

Sharmina, M., Ürge-Vorsatz, D., & Feiler, J. (2008). WORKING PAPER GREEN INVESTMENT SCHEME: CASE STUDY ON HUNGARY. Climate Strategies. https://climatestrategies.org/wp-content/uploads/2014/11/sharmina-et-al-2008-gis-case-study-hungary-final.pdf

Chicago

Sharmina, Maria, Diana Ürge-Vorsatz, and József Feiler. WORKING PAPER GREEN INVESTMENT SCHEME: CASE STUDY ON HUNGARY. Climate Strategies, 2008. https://climatestrategies.org/wp-content/uploads/2014/11/sharmina-et-al-2008-gis-case-study-hungary-final.pdf.

Wikipedia

{{cite report |last1=Sharmina |first1=Maria |last2=Ürge-Vorsatz |first2=Diana |last3=Feiler |first3=József |title=WORKING PAPER GREEN INVESTMENT SCHEME: CASE STUDY ON HUNGARY |publisher=Climate Strategies |date=December 2008 |url=https://climatestrategies.org/wp-content/uploads/2014/11/sharmina-et-al-2008-gis-case-study-hungary-final.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sharmina2008working, author = {Sharmina, Maria and Ürge-Vorsatz, Diana and Feiler, József}, title = {{WORKING PAPER GREEN INVESTMENT SCHEME: CASE STUDY ON HUNGARY}}, institution = {Climate Strategies}, year = {2008}, month = dec, url = {https://climatestrategies.org/wp-content/uploads/2014/11/sharmina-et-al-2008-gis-case-study-hungary-final.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }