Advancing the domestic industrial production towards a sustainable, resource-preserving direction can become an important pillar to support competitiveness in the European Union, as well as in Hungary. Reaching the de-carbonization goals for industrial production via lowering the production volume may result in less desirable macro-economic eff...ects, so decisions which concern the industry require a lot of attention from the climate policy as well. In the case of the cement sector, economic actors have to be motivated to make energy-efficiency investments and technology developments, which also show promise in terms of business efficiency. In the more natural-resource-intensive branches of the industry, both innovations and technological developments will be required to reduce the amount of used non-renewable energy resources, keep it in the industrial cycle, and reduce environmental load. The importance of greener cement will be essential in the near future to reduce the sector’s CO2 emission levels. We need to identify more sector branches which relate to sustainability, which can aid the country in establishing long-term competitiveness that points towards the de-carbonization goals. The cost-efficiency aspects of this development process are the most tedious questions in today’s business planning.
JEL classification: Q55
The topic of the present study deals with the changes and future trends of the European Union’s climate policy. In addition, it studies the manner in which Hungary’s transport sector contributes to the success of the above. The general opinion of Hungarian climate policy is that the country has no need of any substantial climate policy meas...ures, since it will be able to reach its emission reduction targets anyway. This is mostly true, because the basis year for the long term goals is around the middle/end of the 1980’s, when Hungary’s pollution indices were entirely different than today due to former large-scale industrial production. With the termination of these inefficient energy systems, Hungary has basically been “performing well” since the change in political system without taking any specific steps in the interest of doing so. The analysis of the commitments for the 2020-2030 climate policy planning period, which defined emissions commitments compared to 2005 GHG emissions levels, has also garnered similar political reactions in recent years. Thus, it is not the issue of decreasing GHG emissions but the degree to which possible emissions can be increased stemming from the conditions and characteristics of economic growth that is important from the aspect of economic policy. In 2005, the Hungarian transport sector’s emissions amounted to 11 million tons, which is equal to 1.2% of total EU emissions, meaning it does not significantly influence total transport emissions. However, the stakes are still high for developing a low GHG emission transport system, since that will decide whether Hungary can avoid those negative development tendencies that have plagued the majority of Western European transport systems. Can Budapest avoid the scourge of perpetual smog and traffic jams? Can it avert the immeasurable accumulation of externalities on the capital city’s public bypass roads caused by having road transport conduct goods shipping?
JEL classification: Q58
Ever since 2012, the EU ETS (European Union’s Emission Trading Scheme), which is the EU’s climate policy was extended to include the ESD (Effort Sharing Decision) sectors’ (agriculture, transport, building) regulations. As its name implies, this mechanism is based off of shared interests and efforts, all in order to reach the climate goal...s. Therefore, analysing the agriculture sector from an environmental viewpoint requires the analysis of related sectors as well, since their performances will have an impact on determining the requirements to be met by the agriculture. Seeing that those primarily present in said sectors are not various firms, but people and public utility management institutions instead, the level of regulations draws from the economic state of the various countries in question (GDP per capita). Therefore, member states like ours did not receive difficult goals until 2020, due to our performance being lower than the average of the EU. However, during the program phase between 2021 and 2030, all nations are to lower their GHG (greenhouse gases) emission, and have to make developments to restrict GHG emission level growth within the ESD, which means we already have to estimate our future possibilities. During the analyses, we will see that analysing agriculture from an environmental viewpoint, without doing the same to their related sectors and their various related influences is impossible. The GHG emission goals determined by the EU have to be cleared by the agriculture sector, but the inputs from transport, waste management and building are required nonetheless.
JEL classification: Q58