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Factsheet for measure HU-2021-1/3634 – Updated – measures in Hungary

Energy Efficiency Obligation Scheme (EKR)

Energiahatékonysági Kötelezettségi Rendszer (EKR)

Country Hungary , applies nationwide
Time period Temporary, 01 January 2021 – 31 December 2030
Context Green Transition
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery into a green future
– Retrofitting buildings
Author KOPINT-TÁRKI
Measure added 13 December 2024 (updated 30 September 2025)

Background information

The energy efficiency requirements set by the European Union require an accelerated pace of improving energy efficiency in Hungary. The insufficient speed of improvement prompted the government to introduce the energy efficiency obligation (EKR) scheme starting in 2021. The goal is to encourage investments that lead to energy savings for end-users – that is, businesses and households. From 2024 onwards, the scheme is complemented by a secondary market for energy savings, which increased the activity in certain types of energy-saving investments. The overall aim of the scheme is to achieve energy savings of 88 petajoule between 2021 and 2030

Content of measure

Under the EKR scheme, electricity and natural gas traders, providers, and petrol stations are obligated to achieve savings in the energy use of final consumers (households and businesses) in quantities set for each year between 2021 and 2030. The implementation of the necessary investments can be ordered from third parties either by the obligated party or the consumer. The savings must be certified by one of the designated auditing bodies to be considered Certified Energy Savings (HEMs). The quantity of the obligation is determined as a percentage of the energy sold by the obligated party to final consumers within Hungary. The percentage varies each year, with the highest rate (0.5%) set for the years 2024-2027. The owner of the HEMs (whether the final user or the contractor firm that implemented the investment) can sell them to the obligated parties. Since the first quarter of 2024, the HEMs can be traded through the EKR exchange. If the obligated parties cannot obtain the required amount of HEMs in a given year, they must pay a duty of HUF 50,000 (about €125) for every gigajoule of missed savings.

Updates

The following updates to this measure have been made after it came into effect.

01 August 2025

An amended catalogue of standard energy saving measures came into force, with amended parameters regarding the amount of HEMs accountable for each measure. To encourage complex energy-saving interventions, such measures are awarded by increased HEM credits. Also, the amount of HEMs accounted after façade insulation – one of the most consequential residential energy saving intervention – and slab insulation was increased substantially.

20 June 2025

The conditions of the EKR obligation ware modified substantially through the amendment of the Act on Energy Efficiency and the related implementing regulation. The duration of the EKR has been extended to 2035. The quantity of the obligation – as a percentage of the energy sold by the obligated party – has been raised substantially for the second half of 2025 (to 2.3%), 2026 (1.4%), and 2027 (to 1%), but only in the case of natural gas and electricity providers. For the years 2028-2025, the rate has been set at 0.5%. In a major change, from the second half of 2025 to 2027, the share of certified energy savings (HEMs) from residential projects must be at least 75% of the overall value of HEMs acquired by the obligated actors

Use of measure

By 8 December 2024, the number of reported energy-saving projects reached 7,424, and total energy savings amounted to 11,640 terajoules, according to the official counter. This represents about one-tenth of the overall savings target for the 2021-2030 period so far. After a slow start in 2021-2022, the pace has accelerated, with total savings of 763 Terajoules at the end of October 2022 and 11.64 Petajoules recorded in early December 2024. One of the factors driving this acceleration was the launch of the EKR exchange, which allowed non-obligated parties, including natural persons, to participate in the secondary market which periodically sets prices for Certified Energy Savings, thereby providing energy consumers with guidance on the market value of available energy saving options. This led to a surge of activity among enterprises in the field of slab insulation. Many enterprises offered to insulate the slabs of family houses for free in exchange for acquiring the right to the HEMs associated with the energy saving investment, which they could then sell to obligated parties at prices set in the most recent EKR exchange auction. This wave of free slab insulations was so significant that it noticeably reduced the attractiveness of another energy savings initiative, the Home Renovation Programme (See case HU-2024-XX/3638 . At the November 2024 auction, the price of HEMs dropped substantially, which may make the cost-income balance of the free insulation offers less appealing to insulation contractors in the future. According to the official counter, as of August 2025 the number of reported energy-saving projects reached 10,562, and total energy savings amounted to 17,173 terajoules According to a report by HVG in September 2025, the surge in EKR projects in 2024 showed that the original target for certified energy savings – set at 14 petajoule by 2030 – would be surpassed before the end of the year 2025. This led to a decline in demand for HEMs from the obligated energy providers, which was reflected in a drop in free or low-cost offers from insulation and other enterprises to households.

Target groups

Workers Businesses Citizens
Does not apply to workers Applies to all businesses Applies to all citizens

Actors and funding

Actors Funding
National government
Company / Companies
No special funding required

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement Informed
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Only employers' organisations
  • Main level of involvement: Peak or cross-sectoral level

Involvement

National Association of Entrepreneurs and Employers VOSZ is a member of the National ESG Council, which aims to bring Hungary’s ESG system in line with EU rules in a way that prevents local companies from being put at a competitive disadvantage on the internal market, bbj.hu reported.

Views and reactions

Chairman of the energy section of the National Association of Entrepreneurs and Employers (VOSZ), an employers’ organisation dedicated to SMEs, said at a conference in October 2024 that the creation of energy communities and the availability of green schemes will be helping SME competitiveness as well as survival on a global market on the longer term, something VOSZ strives to aid. Zsolt Gyenge told the Portfolio Energy Investment Forum that It is pivotal that SMEs should use clean energy and reduce their dependency on fossil fuels. Onsite and offsite energy communities could help share the otherwise huge costs of energy investments. As much as a 45% green energy rate could be achieved in this way. Taking part in the EKR system could also help SMEs reduce costs. Green energy will soon be a basic requirement for suppliers to large corporations, Robert Sulyok, co-chairman of the Energy Section of VOSZ, added.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      D - Electricity, Gas, Steam And Air Conditioning Supply D35 Electricity, gas, steam and air conditioning supply

This case is not occupation-specific.

Sources

Citation

Eurofound (2024), Energy Efficiency Obligation Scheme (EKR), measure HU-2021-1/3634 (measures in Hungary), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/HU-2021-1_3634.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.