Carbon mitigation in Hungary: Challenges for a sustainable national energy policy

While on a world-wide scale Hungary is a key greenhouse gas emitter neither on an absolute nor on a per capita basis, Hungary recognizes the significance of limiting its greenhouse gas emissions. This paper is based on the Hungarian contribution to a two-year, ten-country research effort, funded by UNEP, aimed at developing a state-of-the-art methodology for the understanding of the economics of greenhouse gas abatement. This paper concentrates on the challenges of the implementation of greenhouse gas mitigation measures. While Hungary has an important cost-effective potential for reducing the emission of carbon dioxide by improving energy efficiency, the implementation of this mitigation strategy is a complex and challenging task. The implementation and financing of energy efficiency measures require the concerted targeting of close to 4 million households, and a wide variety of actors, including banks, the industry, government, international and multilateral organisations, and NGOs. Thus, developing an implementation strategy requires a clear understanding of the existing structures, barriers, and experiences to date. This paper provides a strategic framework for the implementation of demand-side energy efficiency, and examines a case study, the tool of energy efficiency labelling and standards, within this framework.