In light of the growing challenges of climate change and the energy crisis, European countries are rethinking their energy policies. Hungary, which prides itself on significant reductions in greenhouse gas emissions and the ambition to achieve climate neutrality by 2050, faces the imperatives of a green transition. Jozsef Zoltan Magyar, the Ambassador of Hungary to Serbia, spoke about environmental goals, plans for a sustainable future, and cooperation with Serbia for Energy Portal Magazine.

Q: How does the energy transition affect Hungary, which ranks 33rd on the EPI list (Environmental Performance Index) among 180 countries?

A: In 2023, Hungary was the 95th largest country in the world in terms of population but in 33rd place based on the EPI index and global export performance. Compared to the base year of 1990, Hungary reduced its greenhouse gas emissions by 43 percent, thus meeting the 40 percent commitment by 2030. In the last five years, it has tripled its export performance in 15 years, and predictable and clean energy is of fundamental interest to its economy. Our country is one of the most open economies in the world, and like Serbia, it is a landlocked, inland continental country. However, the COVID-19 epidemic has affected supply chains, while the escalating war in Ukraine and the Middle East has highlighted the sensitivity of the European Union’s competitiveness and energy security. In Europe, we cannot realistically build on the economic and population welfare plans adopted at the end of the last decade. Ensuring low-priced energy sources is essential for our competitiveness and the Hungarian people. Since economic strategies are significantly related to energy and climate goals, the Hungarian government redesigned its 2020 National Energy and Climate Plan at the beginning of this fall, which it will shortly submit to the European Commission.

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Q: Is the green transition important for Hungary, which holds the presidency of the Council of the European Union?

A: In the capacity of the Hungarian presidency of the Council of the European Union for the second semester of 2024, our first priority is strengthening competitiveness by adopting a new competitiveness pact in the current semester. We consider the green transition necessary, and it should not weaken our economy by increasing the proportion of renewable energy sources. European debates around the energy transition are related to the competitiveness issue. While Hungary is committed to decarbonization goals with a target to become climate-neutral by 2050, we reject the idea of a rapid switch from fossil fuels to electricity. In our understanding, the energy transition is a long process in which “old” and “new” energy sources will play an equally important role soon. We believe that the green transition must be closely aligned with the modernization of industry, which is the key to economic growth and sustainability. However, an answer must also be found in the European Union regarding how we can ensure the achievement of green targets in financing since the signs of strengthening the Union’s economy are not yet visible. We have become a leading country between the global West and the East in vehicle production, introduction of clean energy vehicles, and battery production. Our main goal is to connect Europe and Asia. Instead of re-creating blocks again in the world, let’s strengthen the interconnectivity between them, which leads to the predictability of our economy and energy supply. A trade war is taking shape in electric car production, which could lead to tension instead of dialogue. In such a situation, climate policy negotiations can be pushed into the background, which affects the development of our livable environment and the future of humanity, for which we must fight with all our might.

Q: How does your country face the challenges of the energy crisis?

A: Due to the Russian-Ukrainian war and the European sanctions policy, Hungary also faced a sharp rise in energy prices and supply uncertainty. As for other net energy importing countries, the new energy market situation has put the security of supply first for Hungary over sustainability and affordability concerns. The security of energy supply and the increase of energy sovereignty grew into a national security issue, in which regional cooperation, including the Hungarian-Serbian partnership, became even more valuable. We will not be able to give up fossil energy sources for a while, even though their proportion and quantity are gradually decreasing. Looking back, we can justifiably say how far-sighted we were when we built a high-pressure interconnector between Serbia and Hungary. The new pipeline has solved the supply uncertainty in the eastern direction; we can transport 8.5 billion m3 of natural gas from south to north yearly. In 2022, with the signing of agreements connecting the two countries’ natural gas and electricity markets, Serbia became Hungary’s main gas supply route. This also allowed Serbia to store its safety reserves in natural gas storage facilities in Hungary. The importance of connecting our electricity market is also indicated by the fact that in 2022, electricity became the most essential product in both Hungarian and Serbian exports and imports. We will also strengthen the efficiency of the electricity market by launching the Hungarian-Serbian-Slovenian electricity exchange in Budapest at the end of the year through the Bluesky project, and by 2028, we will build the second Hungarian-Serbian 400 kV transmission line. To overcome the energy crisis, we are also making important domestic investments: blocks 5 and 6 of the Paks nuclear power plant will be completed by the beginning of the next decade, and we have increased the use of the sun, wind, and biomass.

Interview by Milica Radičević

Read the whole interview in the new issue of the Energy portal Magazine ECOLOGICAL TRANSPORT