ETC-CE Report 2024/Hungary

Circular economy country profile 2024 – Hungary

Cover design: EEA
Cover image © Peder Jensen
Layout: ETC CE

Version: [If relevant]

Publication Date

EEA activity Circular economy and resource use

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Centre on Circular economy and resource use (ETC CE) and expresses the views of the authors. The contents of this publication
do not necessarily reflect the position or opinion of the European Commission or other institutions of the European Union.
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PlanMiljø, Universita Degli Studi Di Ferrara (SEEDS), German Environment Agency (UBA), Teknologian Tutkimuskeskus VTT oy,
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European Topic Centre on

Circular economy and resource use
https://www.eionet.europa.eu/etcs/etc-ce
Contents

Introduction ................................................................................................................................................... 2
Hungary – facts and figures ........................................................................................................................... 4
Existing policy framework ............................................................................................................................. 8
Dedicated national and/or regional and/or local strategy, roadmap or action plan for circular economy
................................................................................................................................................................... 8
Circular economy policy elements included in other policies ................................................................. 10
Monitoring and targets ............................................................................................................................... 15
Assessment of circular economy performance ....................................................................................... 15
Circular economy monitoring frameworks and their indicators beyond the ones from Eurostat.......... 15
Circular economy targets ........................................................................................................................ 15
Innovative approaches and good practices ................................................................................................. 16
Examples of public policy initiatives (national, regional or local) ........................................................... 16
Examples of private policy initiatives (sectoral) ...................................................................................... 17
The way forward.......................................................................................................................................... 19
Identifying and addressing barriers and challenges ................................................................................ 19
Future policy plans .................................................................................................................................. 19

ETC-CE Report 2024/Hungary 1

Introduction

The European Commission requested the EEA to produce EU country profiles that offer an updated view
of the following elements:
• what circular economy policies are being implemented at a national level with a particular focus
on elements that go beyond EU mandatory elements, and
• what are best practices with a focus on policy innovation.

With the EU Circular Economy Action Plan (CEAP 2020) "the Commission [..] encourages Member States
to adopt or update their national circular economy strategies, plans and measures in the light of its
ambition".

These country profiles originate in the work leading to the EEA More from less report (2016) 1 , that
presented an overview of approaches to material resource efficiency and to circular economy in thirty-
two European countries. The More from Less report was followed by the 2019 EEA Report ‘Resource
efficiency and the circular economy in Europe 2019 – even more from less: An overview of the policies,
approaches and targets of 32 European countries’2.
It presented an updated and extended assessment of approaches and identified trends, similarities and
new directions taken by countries in the connected policy areas of resource efficiency and the circular
economy.
These reports, comprising a compilation of extensive survey responses from countries, were accompanied
by 32 country profiles.

In the second quarter of 2022 a new survey with questions and guidelines was launched. Based on
information reported by the Eionet network, in particular, the Eionet Group on Circular Economy and
Resource Use, and after review and editing by the European Topic Centre on Circular economy and
resource use (ETC CE), the 30 2022 CE country profiles3 were published alongside the EEA report ‘Circular
Economy policy innovation and good practice in Member States’4 (2022).

These 2024 CE country profiles are an update of the 2022 ones and based on the responses of 29 countries
to the survey questions and guidelines that were launched in March 2024. The information in the
countries’ responses was again reviewed and edited by the European Topic Centre on Circular economy
and resource use. A selection of Eurostat data was made to further complement these country profiles.

The main objectives of these assessments and its updates are to: • stimulate exchange of information and
share good practice examples among country experts; • support policymakers in Eionet countries, the
European institutions and international organisations by providing an updated catalogue of circular
economy actions being undertaken in European countries.

This circular economy country profile is based on information reported by the Eionet network and, in
particular, the Eionet Group members on Resource Efficiency and Circular Economy in the second quarter
of 2024. Proposals for the further development or amendment of policies represent the view of the
reporting country. For Hungary, all input was provided by the Ministry of Energy of Hungary. The
information was reviewed and edited by the European Topic Centre on Circular economy and resource
use. A selection of Eurostat data was made to further complement this country profile.

1
More from less — material resource efficiency in Europe — European Environment Agency (europa.eu)
2
Resource efficiency and the circular economy in Europe 2019 — European Environment Agency (europa.eu)
3
Country profiles on Circular Economy in Europe — Eionet Portal (europa.eu)
4
draft-report-for-dg-env_final.pdf (europa.eu)

ETC-CE Report 2024/Hungary 2

The information is current as of September 2024, when members of Eionet verified the content of this
profile.

ETC-CE Report 2024/Hungary 3

Hungary – facts and figures
GDP: EUR 196.4 billion (1.2 % of EU27 total in 2023)

GDP per person: EUR 20,480 (purchasing power standard) (76.1 % of

EU27 (from 2020) total per person)

Use of materials (domestic material consumption (DMC))

130.1 million tonnes DMC (2.1 % of EU27 total in 2022)
13.5 tonnes DMC/person (94.8 % of EU27 average per person in 2022)

Structure of the economy (2023):

Agriculture: 5.4 %
Industry: 28.1 %
Services: 66.5 %

Employment in circular sectors:

109,215 people employed in CE sectors (2.5 % of EU total in 2021)
People employed expressed as a percentage of total employment: 2.3 %
(compared to 2.1 % for EU average in 2021)

Surface area: 93,011 square kilometres (2.2 % of EU27 total)

Population: 9,599,744 (2.1 % of EU27 total in 2023)

Note: all definitions and metadata used in this profile are taken, as shown, from Eurostat
Source: Eurostat datasets, EU27 2021 EU27 2022 and EU27 2023 (accessed 21 August 2024)

Figure 1 Material flow diagram for Hungary in 2022, thousand tonnes

Source: Eurostat (2024) [env_ac_mfa], [en_ac_sd], [env_wassd] (accessed 21 August 2024)

Figure 2 Material footprint (raw material consumption), 2010,2019 and 2023, tonnes per person

Source: Eurostat (2024) [env_ac_rme] (accessed 21 August 2024)

Figure 3 Domestic material consumption by selected material category, EU and Hungary, 2023, per cent

Note: totals may not sum to 100 % due to rounding

Source: Eurostat (2024) [env_ac_mfa] (accessed 21 August 2024)

ETC-CE Report 2024/Hungary 5

Figure 4 Resource productivity (gross domestic product/domestic material consumption), EU27, 2010,
2019 and 2023, EUR per kilogramme

Source: Eurostat (2024) [env_ac_rp] (accessed 21 August 2024)

Figure 5 Gross domestic product, domestic material consumption and resource productivity trends,
Hungary, 2000–2023, index (2000=100)

Source: Eurostat (2024) [env_ac_mfa], [env_ac_rp] & [nama_10_gdp] (accessed 21 August 2024)

ETC-CE Report 2024/Hungary 6

Figure 6 Circular material use rate in Hungary, 2011–2022, per cent

Source: Eurostat (2024) [env_ac_cur] (accessed 21 August 2024)

Figure 7 Material import dependency in Hungary, 2011-2023, per cent

Source: Eurostat (2024) [cei_gsr030] (accessed 21 August 2024)

ETC-CE Report 2024/Hungary 7

Existing policy framework
Dedicated national and/or regional and/or local strategy, roadmap or action plan for circular
economy
The Organisation for Economic Co-operation and Development (OECD) report titled ‘Towards a National
Circular Economy Strategy for Hungary’ (5) (hereinafter: OECD Report), published in May 2023, promotes
the transition to a circular economy in Hungary. The document makes policy recommendations and
suggests that Hungary could benefit from measures in the biomass and food, construction and plastics
sectors.

Plastics are of strategic importance for Hungary and represent a significant potential for circularity. They
are a key raw material in several sectors of the national economy, such as transport, computer, electrical
and electronics, food, beverages, tobacco and pharmaceuticals. Plastics currently account for a quarter of
all packaging materials used in the country, but only about a third of plastic waste is recycled. To address
the issue caused by single-use plastic products Hungary has implemented the SUP Directive6 by the 3 July
2021 deadline. The amending provisions providing the legal framework of the restriction have been
adopted with Act XCI of 2020 on the restriction of the placing on the market of certain single-use plastics.
The detailed rules are in the Government Decree 301/2021. (VI. 1.) on the restriction of the placing on the
market of certain single-use plastics. In order to transpose further provisions of the SUP Directive,
Government Decree No. 349/2021 (VI. 22.) on the reduction of the impact of certain plastic products on
the environment entered into force on 3 July 2021, which contains inter alia consumption reduction
measures, an obligation to use awareness-raising measures and provisions on separate collection.

In order to reduce the consumption of plastic carrier bags, the placing on the market of lightweight plastic
carrier bags with a wall thickness of between 15 and 50 microns (expect those made of biodegradable
plastic) prohibited from 1 July 2021 and the environmental product fee (defined in Act LXXXV of 2011 on
the environmental product fee) also increased significantly for plastic carrier bags that have not been
banned from 1 July 2021:
− from HUF 57/kg to HUF 1 900/kg for plastic carrier bags with a wall thickness of less than 15
microns, and
− from HUF 500/kg for biodegradable plastic carrier bags compared to the current exemption from
the product fee,
− for plastic carrier bags with a wall thickness of more than 50 microns the the environmental
product fee unchanged at 1900 Ft/kg.

The construction sector still holds significant untapped potential for Hungary's transition to a circular
economy. More than half of the raw materials used in the national economy are used in the built
environment. The construction sector is also responsible for about one third of Hungary's waste
production. The current regulatory framework for construction focuses on the end-of-life phase of
materials and products but lacks measures for the earlier stages of the value chain. Therefore, in order to
fully exploit the potential of the construction sector, it is necessary to strengthen current measures for
construction, renovation and waste management in the short term, and to focus on introducing new rules
for the production of construction materials and the design of buildings and cities in the longer term. To
address this, two strategies are under preparation:

1. National Construction Economy Strategy is under preparation by the Ministry of Construction and
Transport

5
https://www.oecd-ilibrary.org/environment/towards-a-national-circular-economy-strategy-for-
hungary_1178c379-en
6
Directive (EU) 2019/904 of the European Parliament and of the Council of 5 June 2019 on the reduction of the
impact of certain plastic products on the environment

ETC-CE Report 2024/Hungary 8

 The two CE related topic in this Strategy are:
1) Keep construction materials in the loop: construction and demolition waste
2) Innovation, e.g. development of labs.
• Recently published legislation: 149/2024 (VI.28.) Government decree (7) on the detailed rules
for activities related to the prevention of waste generation in connection with state
investments on national or local public roads, as well as construction activities carried out on
the national railway track network and the regional, suburban railway track network.
This government decree introduces the concept and definition of the primary and secondary raw
material:
1. primary construction raw material: construction material derived from manufacturing
(construction product), extraction (natural building material) or a mixture of these;
2. secondary construction raw material: construction and demolition material, construction
material derived from construction and demolition waste and recovered or extracted as an
industrial by-product and recovered, which replaces the primary construction raw material.

2. Hungary’s National Circular Economy Strategy is also under preparation by the Ministry of Energy (see
Future policy plans).

7
https://njt.hu/jogszabaly/2024-149-20-22 (in Hungarian)

ETC-CE Report 2024/Hungary 9

Circular economy policy elements included in other policies

Circular economy policy element Included in policy

− Regulations (in Hungarian)
− National Waste Management Plan (2021-2027)
− Investment Gap Analysis for National Waste
Management Plan (Gap Analysis)
− New extended producer responsibility system
(EPR), Legislation: Government Decree 80/2023.
(III. 14.) (in Hungarian)
Waste management
− Deposit refund scheme for beverage packaging
(DRS), Legislation: Government Decree 450/2023.
(X. 4.) (in Hungarian)
− Separate collection of biodegradable waste from
households, Legislation: Government Decree
559/2023. (XII. 14.) (in Hungarian)
− EEEOP Plus (in Hungarian)
The promotion of home and community composting (in NÉBIH (National Food Chain Safety Office) - Wasteless
connection with food waste prevention/reduction) programme
Legislation: 149/2024 (VI.28.) (in Hungarian)
The setting up of standards for the construction National Construction Economy Strategy (under
industry preparation)
Hungary’s National Circular Economy Strategy and
Action Plan (under preparation)
Repair Café Budapest (in Hungarian)
Support the establishment of reuse and repair centres
EEEOP Plus RSO2.6. (under preparation)
Support of CE water management EEEOP Plus RSO2.6. (under preparation)
CE business models EEEOP Plus RSO2.6. (under preparation)
EEEOP Plus RSO2.6. (under preparation)
General CE related activities Cohesion 4 Transition
ESG regulation (in Hungarian)

Waste management:
The National Waste Management Plan (hereinafter: NWMP) is the strategic document for the Hungarian
waste management during the 2021-2027 period. In order to have an up-to-date waste management
strategy, the process of the review of the NWMP is ongoing. Until it is finished, NWMP has been amended
with the Investment Gap Analysis (GAP Analysis). It presents, inter alia, the quantitative data needed to
meet the EU targets, identifies the capacity gaps and development needs to meet the targets set by the
EU Directives, and is used as a basis for the funding allocation planning. NWMP also includes the Waste
Prevention Program, which sets the directions of action listed here:
- recycling in the form of materials or compost and biogas instead of landfilling biodegradable
waste.
- the production of compost and biogas meeting quality criteria.
- the rapid establishment of a quality assurance system for compost.
- encouraging compost from bio-waste treatment to be used primarily on land rather than to cover
landfills.
- promoting home and community composting.
- the tasks of the concession company in the context of the concession system for the collection of
biodegradable waste.

ETC-CE Report 2024/Hungary 10

 - the concessionaire shall provide primarily door-to-door collection and shall set up waste collection
points of a size appropriate to the population where door-to-door collection is not provided.
- the establishment of additional composting plants and biogas plants.

The Government Decree 559/2023 (XII. 14.) ( 8 ) provides more detailed regulations regarding the
prevention of biodegradable waste generation, bio-waste management, and compost classification,
imposing obligations on the concession company's activities and stakeholders involved.

The concession company provides the opportunity for separate collection of organic waste as part of its
public service activities, offering dedicated waste containers for this purpose to waste holders. Their
responsibility includes receiving, collecting, and transporting organic waste.

Starting from January 2024, in 14 designated cities (Budapest, Miskolc, Szolnok, Debrecen, Békéscsaba,
Békés, Gyula, Kecskemét, Cegléd, Nagykanizsa, Zalaegerszeg, Kaposvár, Tatabánya, Székesfehérvár),
distribution of waste containers necessary for collecting kitchen green waste and food waste has begun in
residential zones. In Budapest, they plan two collections per week, while in rural areas they are assessing
if one collection per week will suffice.

From March, separate collection of kitchen green waste and food waste has commenced in all 14
municipalities. It's important to note that residents can participate in separate collection free of charge;
there is no additional fee for collecting organic waste.

As part of the program, each household receives a 5-liter kitchen waste bin, which is not only easy to
handle but also odour and leak-proof. Additionally, property managers in residential buildings receive 120-
liter bins into which the contents of the 5-liter bins are emptied. Household kitchen green waste (raw
vegetable and fruit scraps, coffee grounds, tea leaves, spices, herbs, eggshells) and kitchen food waste
(leftovers, processed food, raw meat without bones) can be collected.

The collected kitchen green and food waste is reused in biogas plants, contributing to the development of
a circular economy by generating electricity and heat as renewable energy sources. Moreover, the residue
from biogas plants, due to its high nutrient content, serves as compost material for agriculture. These
plants are typically located near the selected municipalities to minimize transportation distances for
organic waste.

Extended producer responsibility system (EPR)

In the field of waste management Hungary introduced the new extended producer responsibility system
(according to the new detailed rules of the Government Decree 80/2023 (III.14.) ( 9 ) in line with the
minimum requirements of the EU Waste Framework Directive) from 1 July 2023. The scope of the EPR
system covers packaging, electrical and electronic equipment, certain single-use plastic products,
batteries, vehicles, tyres, office paper, advertising paper, cooking oil and grease, textile products, wooden
furniture. Among the waste management activities necessary to meet the specified collection and
recycling EU targets concerning the waste originating from products covered by the EPR system, the
concessionaire shall be responsible for
− the take back, collection, transport, pre-treatment and transfer to treatment of the waste
generated from the products covered by the EPR system,
− the related communication, financial coordination and accounting,
− as well as the operation of the reporting system.

However, the concession company may involve a concession subcontractor in its activities.

8
https://njt.hu/jogszabaly/2023-559-20-22 (in Hungarian)
9
https://njt.hu/jogszabaly/2023-80-20-22 (in Hungarian)

ETC-CE Report 2024/Hungary 11

In the cases specified in the EPR legislation, the producer may also choose to fulfil its extended producer
responsibility obligations individually (in the case of electrical and electronic equipment, vehicles,
industrial or automotive batteries). In this case, the producer is directly involved in the collection and
management of the waste from the products as a concession subcontractor, in accordance with the terms
of its contract with the concession company.

Deposit Refund Scheme (DRS)

Also, in the field of waste management, the nationwide mandatory deposit refund scheme for plastic and
glass beverage bottles and metal beverage cans started from 1 January 2024 (however, a six-month
transition period has been granted, allowing producers to place such packaging on the market until 1 July
2024 under the rules in force before 1 January 2024). The detailed regulation of the Hungarian DRS is set
by the Government Decree nr. 450/2023 (X.4.).(10)

The products covered by the DRS are defined by the government decree as following: metal, plastic and
glass beverage containers of 0.1 to 3 litres (except for dairy beverage products and containers from
manufacturers who market less than 5,000 units per year). From 1 April 2023, manufacturers of the above-
mentioned beverage containers (DRS manufacturers) will have to register as packaging EPR manufacturers
- for both single- and multi-package beverage containers - on the MOHU Partner Portal.

Based on international experience, the introduction of a return system can bring the return rate of
beverage containers covered by the scheme up to 70% in the first year and to over 90% within a few years
of its launch. Currently, in Hungary, around 30-40% of this packaging is collected separately, so the
operation of a mandatory return fee scheme could make a significant contribution to meeting EU
packaging waste targets. Currently, 6 million bottles and cans are returned every day in Hungary, and more
than 100 million bottles and cans have been returned since the scheme was launched.
Furthermore:
− In just a few weeks, the amount donated by Hungarian consumers to the charity marked on the
vending machines - children's treatment - has risen to 28 million forints, but the amount is
growing every day;
− The most popular redemption method is the voucher, which can be redeemed in a shop or chain
of shops, over HUF 6.2 billion has been recovered so far by the consumers;
− Unique in Europe, the domestic redemption system also offers the possibility to transfer money
to a bank account - so far, consumers have claimed back around HUF 1 billion in this way;
− There are currently around 2,200 REpoints with a total of 3,200 redemption machines and
around 1,000 manual redemption points. But the number of these will continue to grow in the
future and their expansion is ongoing.

In the 2021-2027 programming period, EU co-financing under EEEOP Plus is planned to develop the
capacity of existing recycling infrastructure to meet EU targets. Strengthening the market for secondary
raw materials by increasing recovery is essential. The Investment Gap Analysis (GAP analysis), which is part
of the NWMP, presents, inter alia, the quantitative data needed to meet the EU targets, identifies the
capacity gaps and development needs to meet the targets set by the EU Directives, and is used as a basis
for the funding allocation planning.

Separate collection of biodegradable waste from households

10
https://njt.hu/jogszabaly/2023-450-20-22 (in Hungarian)

ETC-CE Report 2024/Hungary 12

The regulation on the rules for separate collection of biodegradable waste from households (Government
Decree nr. 559/2023. (XII. 14.) (11) also entered into force on 1 January 2024. The aim of the new legislation
is to update the current practice whereby a significant proportion of biodegradable waste in our country
is currently landfilled as municipal waste, rather than being recycled or used to produce compost and
biogas, and to introduce stricter regulation by defining the types of waste and the mandatory proportions
from which compost or biogas can be produced, thus contributing to the transition to a circular economy
and to the prevention of biodegradable waste. The aim is to promote the production of compost and
biogas from biodegradable waste, meeting quality criteria, and its increased and high-quality use.

NÉBIH (National Food Chain Safety Office) - Wasteless programme

A further important objective is to use as much organic material of plant origin that is not waste as possible,
either at the place of its production or on the property where it is produced, to provide nutrients for plants,
as far as environmental, economic and technical conditions allow. The promotion of home and community
composting will therefore play an important role in the future, helping to reduce the amount of waste
generated. To achieve this, however, emphasis must be placed on raising public awareness and educating
the general public, in which the NÉBIH (National Food Chain Safety Office) - Wasteless programme will
also be involved alongside the Concessionaire, complementing the programmes and initiatives already in
place. The European Week for Waste Reduction for a Sustainable Future (hereinafter: EWWR) is an
initiative launched by the European Union and takes place every year in the second half of November. Last
year marked the 15th anniversary of the campaign, and Hungary was taking part for the tenth time in
2023. It is an initiative that has become more and more popular among the campaign organisers every
year, so of course Hungary intends to take part in the coming years as well.
The long-term goal is not just to raise awareness during the week of November, but to make the goals a
reality in everyday life. EWWR 2023 took place from 18 to 26 November and 279 actions were registered.
To mark the 15th anniversary of the EWWR, the Ministry of Energy is also planning to remove plastic
takeaway food containers from the Ministry's restaurant and instead provide colleagues with access to a
reusable food packaging system. This will reduce packaging waste in the Ministry. Of course, the campaign
can also have a positive impact on the attitudes of the employees and their families.

In order to promote community composting under EEEOP Plus RSO2.6. a call for proposals is under
preparation, which aims to support complex projects: establishment of community composting places and
awareness raising of the community. These calls for proposals are still under development, so more
information cannot be disclosed at this point.

Recently published legislation: Government decree 149/2024 (VI.28.)

149/2024 is the government decree on the detailed rules for activities related to the prevention of waste
generation in connection with state investments on national or local public roads, as well as construction
activities carried out on the national railway track network and the regional, suburban railway track
network The decree is important milestone in circular economy activities, as it introduces the concept and
definition of the primary and secondary raw material applicable in the construction sector..

Reuse and repair centres

Repair Café Budapest: There is one Repair Centre in Budapest, granted by the Budapest Capital
Municipality.
Under the Environment and Energy Efficiency Operative Programme Plus (EEEOP Plus) of the 2021-2027
programming period EUR 220 675 089 ( 12 ) fund is available for RSO2.6. Promoting the transition to a
circular and resource efficient economy. The most part of the available source is related to waste
management (e.g. increase capacity related to recycling technologies).

11
https://njt.hu/jogszabaly/2023-559-20-22 (in Hungarian)
12
EUR 218 246 518 ERDF, EUR 2 428 571 CF.

ETC-CE Report 2024/Hungary 13

Also, a limited source (13) available for the other parts of the value chain, related to the intervention field
075. Support to environmentally-friendly production process and resource efficiency in SMEs. Half of these
sources are available as financial instrument.
In order to promote reuse and repair centres under EEEOP Plus RSO2.6. calls for proposals are under
preparation, which aim to support projects
- by financial instrument: establishment of new business models, product as a service or sharing
economy. Within this development of services like repair centres are potential projects.
- by non-refundable grant: establishment of re-use centres and implementation of related
awareness activities.

EEEOP Plus RSO2.6. calls for proposals – are also under preparation – aim to support the further projects
as well:
- by financial instrument for SMEs: establishment of new business models, like industrial
symbiosis, revers logistic systems, sustainable and environmental friendly product design and
production processes, connection of local production and consumption, shorten of value chains,
etc..
- by non-refundable grant for SMEs: support of CE water management, pilot and demonstration
projects, soft and related investments, awareness raising (not independently).

ESG Regulation

On 12 December 2023, the Hungarian Parliament adopted Act CVIII of 2023 on the rules of corporate social
responsibility, taking into account environmental, social and societal aspects, and amending other related
acts, to promote sustainable financing and unified corporate responsibility.

The companies concerned are large companies of public interest established in Hungary (they have an
obligation for the year 2024) that met any two of the following three indicators in the financial year
preceding the current financial year:
− the balance sheet total exceeded HUF 10 000 million;
− annual net turnover exceeding HUF 20 000 million;
− the average number of employees exceeded 500.

and the law also covers large enterprises (which are obliged to do so for the year 2025), if any two of the
following three indicators exceeded the following thresholds on the balance sheet date in the financial
year preceding the current financial year:

− the balance sheet total is HUF 10 000 million;

− annual net turnover of HUF 20 000 million;
− the average number of employees is 250.

and small and medium-sized enterprises of public interest (they have an obligation for 2026) are also
covered by the law. These companies must publicly disclose information on the sustainability risks and
opportunities they face, how sustainability issues affect their performance, position and development, and
their impact on people and the environment.

The Parliament also amended the ESG Act on 10 April 2024 by adopting Bill T/7732 on the Amendment of
Certain Economic and Property Management Acts to support the competitiveness of Hungarian companies
in ESG compliance. By seeking to standardise the questionnaire annexed to the ESG report, it will reduce
the increasing information requirements of external actors and the administrative burden on companies

13
EUR 44 135 018 ERDF, EUR 909 334 CF.

ETC-CE Report 2024/Hungary 14

by enforcing a caring state approach, and ensure the professional expectations of ESG contributors by
supporting their preparation for ESG reporting and certification.

To reduce the administrative burden on companies, the amendment allows companies directly concerned
by the ESG Act to prepare their ESG accounts on a consolidated basis, including information on
subsidiaries. The ESG Act clarifies the tasks of the Regulated Activities Supervisory Authority (RSA) as an
authority in relation to accreditation and registration, and the basic concepts and procedures that can be
used in the detailed rules. It has also extended the ESG authority's supervisory and control powers in the
consultancy and certification market and created the licensing leg of the state's drive for harmonisation in
the area of questionnaires. The membership of the National ESG Council has been enlarged by the
amendment of the law to include additional professional, policy delegates. This amendment ensures that
the bodies involved in the development of the ESG detailed rules are strengthened in their ability to
validate aspects affecting the competitiveness of enterprises and that the governmental, strategic and
public policy perspectives are adequately represented in the definition of the minimum requirements for
ESG reporting.

Monitoring and targets

Assessment of circular economy performance
The European Commission has set up a monitoring framework to keep track of progress towards a circular
economy. This framework provides a holistic view as it:
• measures direct and indirect benefits of 'becoming circular' and
• values the contribution of a circular economy in living well within the limits of the planet
• addresses energy and material supply risks.
It consists of 5 thematic sections with a total of 11 statistical indicators, some of which have additional
sub-indicators. In some cases policy targets exist which should be achieved in the future, and the indicators
monitor progress towards these targets. The current monitoring framework is a revision of the original
framework which was set up in 2018.

This section elaborates on the assessment of Hungary its progress in terms of observed trends over the
last 5 years and what country characteristics or policy actions may explain differences between the country
its performance and the average EU performance.

No new information has been received on this topic since the 2022 Country Profile.

Circular economy monitoring frameworks and their indicators beyond the ones from Eurostat
The earlier mentioned Hungary’s National Circular Economy Strategy and Action Plan – based on the OECD
Report – is under preparation.
The chapter related to the monitoring framework is based on the chapter with the same title of the OECD
Report (8. Proposed action plan and monitoring framework of the National Circular Economy Strategy).

Indicators are also stipulated in the related chapter (8.) of the OECD Report and linked to the objectives
set (Table 8.6., 8.7., 8.8.).

Circular economy targets

Hungary’s National Circular Economy Strategy and Action Plan (under preparation) will set CE targets based
on chapter 4. of A circular economy in Hungary by 2040”of the above mentioned OECD Report , which
highlights these targets:

ETC-CE Report 2024/Hungary 15

“4.1. A vision with clear goals steers the circular economy transition
The strategic vision and goals of the National Circular Economy Strategy (NCES) (as outlined in Figure 4.1)
were developed by the OECD in consultation with the project steering committee and the stakeholder
working group and validated by the Prime Minister’s Office and the Ministry of Energy. All the stakeholders
will collaborate to reach the following targets by 2040 (compared to 2019 levels):

• To restrict the amount of materials consumed, the government will invest in research and
implement incentives to encourage resource efficiency through innovation, eco-design, product
sharing and reuse. Hungary aims to double its resource productivity (GDP/DMC).
• To close the loop of materials use and to use materials more sustainably, measures will be taken
to double the Hungarian circular materials use rate to 15%.
• To capture a broader array of benefits related to the transition to a circular economy, the
government will implement support mechanisms for innovation and new business models.
Hungary aims to increase the number of circular jobs by 30% across industry, agriculture and
service sectors, to achieve 2.5% of total national employment.”

Innovative approaches and good practices

Examples of public policy initiatives (national, regional or local)
➔ Good practice example: Green/Circular/Sustainable public procurement
PET Cup (14):
The Ministry of Energy gives high priority to the decontamination of the Tisza River and its tributaries,
which are mainly polluted by waste from upstream countries, and therefore supports civil initiatives such
as the PET Cup to eradicate illegal dumping. The PET Cup is an innovative civil initiative to stop recurring
waves of pollution, identify the largest illegal landfills, and clean up floodplains and rivers. It differs from
other waste collection activities in that it not only collects waste, but also manages it, coordinates the
cleaning and recycling of the collected waste, and creates the conditions for the construction of PET bottle
boats. Through all of these activities, they exemplify good practice in the transition to circular waste
management, with an increasing impact on awareness raising and infrastructure development in addition
to river illegal waste collection. It is a world-leading initiative to combat pollution through the use and
recycling of polluting materials, based on the principle of 'waste to value'. In more than 10 years of
existence, the PET Cup has become an initiative of international importance, with six other countries
following this best practice last year. In 2023, with the support of the Hungarian government, the Cup has
already been held in three locations, where participation and collection results have also been
exceptionally high. The XI. Upper Tisza Plastic Cup resulted in collecting 937 bags of waste, the VI. Tisza
Lake Plastic Cup resulted in collecting ca. 400-500 bags of waste and the IV. Bodrog Plastic Cup resulted in
collecting a record quantity of 11 tons of waste. The numbers and results speak for themselves, so the
Hungarian government is not hesitating to support the PET Cup in the future: from 2024, with the support
of the Ministry of Energy, the River Rescue Centre will be further developed with the creation of a plastic
recycling workshop using renewable energy (electricity generated by hydroelectric power). The Plastic
Innovation Mobile Workshop will also be developed to bring sustainability messages to the less developed
villages along the Tisza River where waste awareness is most needed.

“TeSzedd!” (Pick It Up!) - Volunteer for a Clean Hungary:

Since 2011, the Hungarian government has been organising the country's largest volunteer movement,
Pick It Up! - Volunteer for a Clean Hungary - an action in which the population, regardless of gender, age

14
https://www.petkupa.hu/eng/

ETC-CE Report 2024/Hungary 16

or place of residence, participates in making our country clean and waste-free. The Pick It Up! campaign
also aims to raise environmental awareness among the population and consumers, to emphasise the
importance of preventing and eliminating illegal waste dumping and to promote volunteer work. With the
involvement and active participation of the community, the campaign will contribute to the common goal
of the Government and Hungarian waste management professionals: to create a sustainable country
based on environmental awareness, where the amount of waste landfilled and its negative impact on the
environment and health are successfully minimised in the long term. In 2023, participants collected 1775.9
tonnes of waste. In 2024, more than 95.000 participants collected ca. 809 tonnes of waste (15).

Examples of private policy initiatives (sectoral)

➔ Good practice example for plastics

RAKUN (16)
The Rakun Box Community is a system that allows community members to take their food from the
restaurant in the stainless steel Rakun box, which can be used approximately 1,000 times, or to order it to
their home instead of the disposable packaging that is a major environmental burden.
In the framework of the project, Rakun has signed a cooperation agreement with the food delivery
company Wolt and the IT development has been carried out to link the Wolt and Rakun platforms so that
food orders placed through Wolt are delivered in Rakun boxes.
Rakun Ltd. has implemented its project "Rakun Box Community" as an incubator of Virgo Ventures in the
framework of the 2020-1.1.4-STARTUP "STARTUP FACTORY" call announced by the National Research,
Development and Innovation Office.
The project was completed in 8 months and the company was awarded a grant of 8 million HUF (20302,83
EUR) from the NRDI Fund.

➔ Good practice example for food

MUNCH (17)
(B)eat food waste
Munch provides a simple solution for making food management more environmentally, socially, and
economically sustainable.
Munch is a platform where restaurants and retailers offer unsold but high-quality food at a discount.
Besides food saving Munch has launched its joint charity project with the Hungarian Food Bank, the so
called ‘MunCharity’, where needy person can be invited for a portion of food.
Munch was also the winner of the Blue Planet Climate Protection Award of the Hungarian Business Leaders
Forum (in 2020).

Green List Buyer Programme

The Green List Buyer Programme promotes conscious shopping and environmentally responsible
consumption. The aim of the campaign is to encourage residents to shop with a list of products they need
and a reusable shopping bag, to make environmentally conscious choices and to reduce waste.

Wasteless (18)

15
https://national-policies.eacea.ec.europa.eu/youthwiki/chapters/hungary/28-raising-awareness-about-youth-
volunteering-opportunities
16 https://www.rakun.hu/en

17
https://munch.hu/?lang=en_US
18
https://maradeknelkul.hu/en/

ETC-CE Report 2024/Hungary 17

In 2016, the National Office for the Safety of the Food Chain (Nébih) launched the Wasteless programme,
which includes school programmes, educational materials and sectoral guides to identify problems that
lead to food waste, prevent food waste and disseminate good practices. Since the launch of the
programme, the food waste of the Hungarian population has been continuously monitored, i.e. solid and
liquid food waste in households has been measured 4 times according to the EU methodology. The first
data, from 2016, showed that Hungarians "produce" 68 kg of food waste per person per year, of which
about half, or 33.1 kg, is actually wasted. Waste, or food thrown away unnecessarily, has been reduced to
24 kg by 2022, a 27% reduction.

➔ Good practice example: Reuse and recovery

VINTED (19 )
(Operating internationally, across Europe, even in USA and Canada, also in Hungary.) Second-hand can be
brilliant. Provides opportunity to sell and buy used clothes or several kind of items.

REMIX by ThredUP (20)

Originally a Bulgarian initiative, Remix is also active in Hungary, and is increasing in popularity. Remix is
part of ThredUP, the world’s largest second hand clothing-, footwear and accessories store, and allows
preloved clothing a second chance, thus supporting sustainability and circularity efforts. It focuses on
innovation in second hand retail and apparel industry, with its patented technology, "Resale-as-a-Service
- RaaS" by ThredUp (USA).

➔ Good practice example: New business models

MESKA (21)
Craft online shop makes thousands of products by local crafts and designers available, launched in 2008
and from 2022 onwards, it also offers a range of high-quality vintages for sale. Every month, around
550,000 potential customers browse and choose from unique, handmade products on its online
marketplace. More than 4 M visitors per year, more than 1 Billion HUF business turnover, 55 M
downloaded pages and hundreds of thousands of registered users.

➔ Good practice example for textiles

Frajla (22)
Tailoring services, sale of second-hand, refurbished and altered clothing
Preloved garment retailers sometimes offer a tailoring service to keep more second-hand garments on the
textiles market. This is the business model of the Hungarian Frajla, which offers a tailoring service as well
as the possibility to buy second-hand but also refurbished and altered garments.

➔ Good practice example for biodegradable waste

Compocity
Compocity is a Hungarian startup. Its founders set themselves the green and truly useful goal of
revolutionising the indoor composting process. Compocity is the answer to many people’s wish that "it
would be nice if a lot of kitchen waste didn't end up in the garbage".

19
https://www.vinted.hu/about
20
https://remixshop.com/hu/site/about-us (in Hungarian)
21
https://www.meska.hu/aboutus (in Hungarian)
22
https://www.frajla.hu/rolunk/ (in Hungarian)

ETC-CE Report 2024/Hungary 18

If you have a large garden or plot of land, or if you have a friend who keeps pigs, you have already been
able to recycle leftover food. However, these conditions are not typical for the majority of people, and at
the same time, they may also have the desire to compost.
The Hungarian-developed Compocity offers just such a solution. Compocity is an automatic household
composter that produces humus from household waste through fermentation. The good news for many
is that it is essentially odourless and does not require earthworms.
Instead of earthworms, a fermentation process is used to produce soil from the leftover food, while the
microorganisms keep the process at a low temperature.
At the heart of Compocity is an eco-robot that converts organic kitchen waste into compost in a matter of
weeks cleanly, without odours and greenhouse gases, daily maintenance or earthworms.
The system's built-in sensors automatically detect the condition of the CompoMIX (composted material)
and suggest the appropriate use.
Compocity is at the forefront of transforming office food waste into valuable fertiliser, in line with green
technology trend.

The way forward

Identifying and addressing barriers and challenges
For EEEOP RSO2.6. ex-ante study of the financial instrument is under preparation, which will focus on
SME’s needs and ability to apply, but is still in an early stage, has no available findings yet.

Hungary’s Circular Economy Strategy is under preparation also, based on the OECD Report23, which found
the following main challenges:

Although Hungary has achieved relative decoupling of economic growth from resource and energy uses as
well as from waste generation, the country remains a below average performer in the EU. Hungary’s
material productivity has been low (at USD 1.8 per kg compared to the EU average of at USD 2.9 per kg
in 2019), implying that Hungary does not use its materials efficiently to generate economic value.
Moreover, the share of material resources used from recycled waste materials reached only 6.8% (well
below the EU average at 11.9% in 2019). At the same time, Hungary’s domestic material consumption has
been higher than the EU average, while recycling rates remained low. (2.5.)

As wealth increases and living standards in Hungary converge towards the EU and OECD averages, demand
for resources and materials will increase. In particular, the sectors where Hungary holds a comparative
advantage (including electronics, motor vehicles, and other manufacturing) are projected to experience
faster growth over the next three decades. In construction, high infrastructure investments will maintain
resource demand, whilst the growth in services reflects the sector’s growing importance in its economy.
(2.6.)

The Strategy – under preparation – and its implementation is planned to address the main challenges.

Future policy plans

Hungary’s National Circular Economy Strategy is under preparation by the Ministry of Energy. Measures
and initiatives of the strategy are based on the mentioned OECD Report, in which the key policy
recommendations are the following:

23
https://www.oecd-ilibrary.org/environment/towards-a-national-circular-economy-strategy-for-
hungary_1178c379-en

ETC-CE Report 2024/Hungary 19

 Key policy recommendations in the three priority areas of the OECD Report24

1. Biomass and food

- Developing a regulatory framework to support the use of quality compost and digestate in
agriculture;
- Redefining the policy approach to bioenergy production;
- Strengthening education, information and training tools.

2. Construction sector
- Quality of secondary construction materials (standards, labelling);
- Restructuring of existing renovation support schemes;
- Mandatory selective demolition scheme (material recovery);
- Promotion of digitisation (to develop re-use and recycling).

3. Plastics
- Design → Increase recyclability;
- Economic incentives for recyclability (eco-modulation of EPR fees);
- Green public procurement;
- Increase landfill taxes and strengthen enforcement of waste legislation.

The document serves as a basis for the creation of Hungary’s National Circular Economy Strategy
and Action Plan, the work on which began after the publication on the OECD Report. The Strategy
is foreseen to be accepted in the coming months. During evaluation of the document in coming
years other key sectors are planned to be included to further widen the scope of the Strategy.

Component G of Hungary’s Recovery and Resilience Plan aims at facilitating the transition to a circular
economy. As part of the objective of waste management investments will help the transition to a circular
economy in Hungary. In accordance with the objectives of the European Union and Hungary:
1. it contributes to the achievement of waste management objectives;
2. to increasing the recycling rate and
3. to the reduction of CO2 emissions.
This supports the medium-term strategic goal of making the Hungarian waste management sector one of
the exemplary models of circular economy in Europe.

According to the European Green Deal, the European Union must ensure that it is carbon-neutral by 2050
and that it undertakes a more ambitious reduction of at least 55% by 2030, in addition to the 40% emission
reduction already agreed. The Hungarian Energy and Climate Plan also set targets for reducing waste-
related emissions. ’Waste-related emissions will be reduced by 23% by 2030. The main driver of the
reduction is the reduction in the amount of landfilled waste.’ The planned investments consider, among
others, investments in energy efficiency in the waste sector.

The component contributes to the following country-specific recommendations:

• 2019/3 Focus investment-related economic policy on research and innovation, low carbon
energy and transport, waste infrastructure and energy and resource efficiency, taking into
account regional disparities.
• 2020/3 Focus investment on the green and digital transition, in particular clean and efficient
production and use of energy, sustainable transport, water and waste management, research
and innovation, and digital infrastructure for schools.

24
https://www.oecd.org/en/publications/towards-a-national-circular-economy-strategy-for-hungary_1178c379-
en/support-materials.html (both in English and Hungarian)

ETC-CE Report 2024/Hungary 20

 • 2022/5 Promote reform and investment on sustainable water and waste management and the
circularity of the economy, the digitalisation of businesses, green and digital skills, and research
and innovation.

The existence of an NWMP is required by Directive (EC) 2008/98 of the European Parliament and of the
Council on waste and repealing certain directives, as well as Act CLXXXV of 2012 on waste. The NWMP is
prepared for a 7 years period, in line with the programming period of the European Union. The NWMP
presents the waste management situation in Hungary for the 2021-2027 period, presents the situation at
the time of preparation for each waste stream, the results achieved during the NWMP referring to the
previous 2014-2020 period, identifies the shortcomings and outlines general and specific action directions
for the given waste stream. The NWMP is prepared in order to achieve the strategic objectives of waste
management, to achieve the set goals, and to enforce the basic principles of waste management. The aim
of the NWMP is to contribute to meet the EU requirements. The NWMP action programme defines tasks
and measures for the waste management and indicates the resource required for their implementation.
The NWMP for the period of 2021-2027 has been adopted in 2021. Review of the NWMP is expected soon,
and society is currently involved in commenting on the document. The NWMP names all targets that are
also included in the present RRF document. One of the eligibility conditions for the payment of EU cohesion
funding for the 2021-2027 period is up-to-date waste management planning, which is going to be fulfilled
by the earlier mentioned Gap Analysis (under reviewing procedure with the European Committee). The
NWMP is the basis for this condition of eligibility, so it will meet the criteria set by the EU.

Under the Environment and Energy Efficiency Operative Programme Plus (EEEOP Plus) of the 2021-2027
programming period EUR 220 675 08925 fund is available for RSO2.6. Promoting the transition to a circular
and resource efficient economy. The most part of the available source is related to waste management
(e.g. increase capacity related to recycling technologies). Also, a limited source26 available for the other
parts of the value chain, related to the intervention field 075. Support to environmentally-friendly
production process and resource efficiency in SMEs. Half of these sources are available as financial
instrument. Several related calls for proposals are under preparation, expected to be launched late
2024/early 2025.

Under RRF RRP’s G., the so called ‘TRANSITION TO A CIRCULAR ECONOMY’ component, which aims at
strengthening smart, innovative and sustainable industry and secondary raw materials markets, the
following reforms and investments were named. As it is set in the document the component aiming the
further developments:
• Reform: National regulation of the Transition to a circular economy
o The National Waste Management Plan for 2021-2027 – The plan has been prepared
o OECD Report in which the National Circular Economy Strategy and Action Plan is based –
THE OECD report has been published27, and the actual Strategy is under preparation.
• Investment: Reinforcing a smart, innovative and sustainable industry and the market of secondary
raw materials
The RRF is under implementation.28

25
EUR 218 246 518 ERDF, EUR 2 428 571 CF.
26
EUR 44 135 018 ERDF, EUR 909 334 CF.
27
https://www.oecd-ilibrary.org/environment/towards-a-national-circular-economy-strategy-for-
hungary_1178c379-en

ETC-CE Report 2024/Hungary 21

European Topic Centre on The European Topic Centre on Circular economy and
Circular economy and resource use resource use (ETC-CE) is a consortium of European
institutes under contract of the European
https://www.eionet.europa.eu/etcs/etc-ce
Environment Agency.