The Hungarian Government is committed to reducing environmentally harmful activities and protecting the environment. However, fines imposed by environmental authorities for violations related to environmental permits, noise pollution and air quality have remained unchanged for 15–20 years. The Government expects all investments to meet the highest environmental standards, and under the “polluter pays” principle, non-compliant companies will face penalties.
A draft legislative proposal, currently open for public consultation by the Department of Energy, introduces stricter measures, including increased environmental and waste management fines, higher penalties for sewerage violations, public disclosure of major environmental offenders, and on-the-spot fines for illegal waste disposal. Under the proposal, fines will rise significantly, at least doubling and, in some cases, increasing up to fortyfold, based on the severity of the infringement. The revised regulations will also differentiate penalties for individuals, small and medium-sized enterprises (SMEs) and large corporations.
Key changes include for example that if an investor starts or continues an activity requiring an environmental permit without obtaining one, the daily fine will increase to HUF 100,000 - 1 million (EUR 250 – 25,000). Or, if a business has the required permit but fails to comply with its conditions, SMEs will face fines ranging from HUF 500,000 to HUF 20 million (EUR 1,250 – 50,000). For large companies, the maximum fine will be 5% of their net turnover from the previous year, capped at HUF 2 billion (EUR 5 million).
The proposed legislation also establishes stricter rules for major environmental violations. According to a draft government decree, companies fined HUF 50 million (EUR 125,000) or more in a given year will face additional legal consequences. Similarly, strict treatment applies to individuals, where the priority category applies to fines above HUF 10 million (EUR 25,000). Businesses or individuals committing serious environmental offenses will be publicly named, with details recorded in the Register of Administrative Sanctions. The environmental authority will also inform the Minister responsible for the environment, and the Ministry will publish the offender's details online. Furthermore, the Environmental Protection Agency may suspend a business’s operations until the violation is rectified.
These amendments aim to strengthen enforcement, ensuring penalties align with the severity and scale of violations. Following public consultation, the finalized legislation is expected to be published in the Official Journal within weeks.
By Denes Glavatity, Attorney-at-Law, KCG Partners Law Firm
