Energy Hungary News in brief

Central Europe Will Not Support Carbon Tax

| 2021-04-26 < 1 min read

Central Europe Will Not Support Carbon Tax

Reading Time: < 1 minute

In an op-ed for Euobserver, Attila Steiner, secretary of state for circular economy, energy and climate at the Ministry of Innovation and Technology describes Hungary’s position in the climate politics with the following sentence: “If you can’t beat ’em, join ’em’ – and when you do so, try to come out ahead. That’s exactly what we’re doing.” Steiner underlines that Europe needs a climate programme that keeps affordability, security of supply and competitiveness in mind.

He also draws the red lines for Hungary: together with several other central and eastern European (CEE) countries, Hungary does not support the introduction of a single EU carbon price for all sectors because this could significantly increase the overhead costs for CEE households. He adds that natural gas is critical to ensure a secure energy supply and is key as a transitional solution. Finally, he urges that the Modernisation Fund should be warranted, because, after increasing the 2030 climate target, the CEE region will face higher costs relative to GDP to achieve climate neutrality.