To further safeguard Hungary’s natural values and resources, promote a greener economy, and enhance the circular economy, the Hungarian Government introduced the possibility of two-level proceedings in environmental authority cases starting from 1 July 2024. This measure aims to strengthen the protection of public health and the environment.
The national body of the second instance will serve as a preliminary legal remedy forum before judicial review. Once established, second-instance proceedings will be conducted within the framework of state administration. This second-instance authority will be a separate Deputy State Secretariat within the Ministry of Energy, responsible for handling appeals against preliminary and environmental impact assessments, as well as first-level integrated environmental management permits. It will also supervise first-instance environmental authorities to ensure uniform practices.
According to the Ministry of Energy, the new authority will address the shortcomings of first-instance permits by conducting procedures swiftly and resolving technical issues efficiently, thus avoiding long-term delays in significant investments crucial for Hungary’s competitiveness.
However, critics argue that the establishment of this new environmental authority, which replaces the existing system and allows for judicial review at the second instance, may have its drawbacks. They view this change negatively, particularly due to concerns regarding environmental permits and the operations of several battery manufacturing plants in Hungary. While the official communication frames this change as a step toward enhancing public health and environmental protection, critics suggest that the real motive is to mitigate the risk of prolonged shutdowns of battery factories under the new authority. They contend that this new system could make it extremely difficult for those protesting against polluting projects, such as battery factories, to prevent their construction near residential areas. Thus, the problem of giving an authority close to the government, the power to review environmental issues of projects it supports is likely to hinder effective opposition to such developments. Only time will reveal the real impact of this new system.
By Denes Glavatity, Associate, KCG Partners Law Firm
