LIFE programme

The LIFE programme is the EU’s funding instrument for the environment and climate action. Created in 1992, it has co-financed approximately 5500 pilot, demonstration and best practice projects until nowadays. The scope of the programme was broadened by the sub-programme for Climate Action in 2014, and by the sub-programme for Clean Energy Transition in 2021. As a direct EU fund, the programme is coordinated by the Climate, Infrastructure and Environment Executive Agency (CINEA) of the European Commission.

The „LIFE Integrated Project” (hereinafter: LIFE-IP or IP) project type was also introduced in 2014. LIFE-IPs are large-scale, ambitious projects usually implemented via policy coordination, targeting the implementation of a whole climate change strategy or action plan. Furthermore, LIFE-IPs are usually implemented on a large territorial scale and in a wide stakeholder cooperation. In the 2014-2020 period Hungary – as all Member States – had an indicative national allocation of 3 LIFE-IPs, which the country has used successfully and managed to receive co-financing for 3 IPs, (1 in Nature, 1 in Environment and 1 in Cimate Action). Within the 2021-2027 LIFE programme, IPs will be called Strategic Integrated Projects (hereinafter: SIP), with the same scope and objective.

For other LIFE-IPs in the sub-proggramme for Cimate Action, please see the following link: Link

For other LIFE-IPs in the sub-proggramme for Environment, please see the following link: Link

The European Union’s climate policy in brief

The 2030 Climate and Energy Framework defines the EU’s key climate related objectives and specifies the following three main targets:

• a 40% reduction in greenhouse gas emissions compared to 1990,
• increasing the share of renewables to 32% in the gross final energy consumption,
• at least a 32.5% energy efficiency improvement.

The EU aims to achieve the 40% greenhouse gas (GHG) reduction target through the Emissions Trading Scheme, the Effort Sharing Regulation and the Land Use and Forestry Regulation.

As part of the European Green Deal, the European Commission proposed in September 2020 to increase the GHG reduction target to 55%. The Commission is expected to publish its detailed legislative proposals in July 2021.

National Energy and Climate Plan (NECP)

LIFE IP North-HU-Trans aims to contribute significantly to the National Energy and Climate Plan as a key strategic document in the climate and energy policy of Hungary. 

Regulation 2018/1999/EU of the European Parliament and the Council requires Member States of the European Union to create a National Energy and Climate Plan (NECP).  The Hungarian Government adopted the NECP on 8th January 2020 and it was submitted to the European Commission on 22th January 2020. 

Annex I of the regulation sets the structure of the NECPs which contain the current status, goals, measures and projections of each Member States for the dimensions of the energy union (decarbonisation; energy efficiency; energy security; internal energy market; research, innovation and competitiveness).

The following table contains the main objectives of the Hungarian NECP broken down by dimension of the energy union.

The NECP’s goals relevant for the LIFE-IP North-HU-Trans project

Coal phase-out

One of the most important decarbonisation tasks is the conversion of the lignite-fired Mátra Power Plant to low-carbon technologies, thus removing coal and lignite from domestic electricity production by 2030.

The construction of a new gas turbine power plant, which is especially important for the security of supply in the eastern part of the country, the construction of a new photovoltaic (PV) power plant and industrial energy storage unit utilizing refuse-derived fuels (RDF) at the MPP site are currently under investigation.  

The reorganization of the Mátra Power Plant goes beyond the technological issues and must also consider the socio-economic and environmental impacts of the Northern Hungary region affected by the power plant’s operation. The power plant has a significant socio-economic impact within its narrower area, including the creation and maintenance of jobs, indirect job creation in related businesses or local tax revenues. Therefore, the revitalization must pay special attention to the diversification of the region’s economy and labour market and to a just transition (“Just Transition”), building on the unique potential of the site and the power plant’s value chain.

A significant part of households in the country relying on lignite-based heating are in the region of the Mátra Power Plant. During the revitalization and transition, our goal is to supply residential heating demand with clean energy and reduce energy consumption. Furthermore, we want to encourage the installation of residential solar systems in the region of the power plant, to partially replace electricity production.

The large-scale site of the Mátra Power Plant may be suitable for multi-purpose utilization beyond its energy related functions. These include opportunities for expansion and diversification of the industrial park, expansion of agricultural or storage and logistics functions, and the preservation and presentation of the mining cultural heritage.

Energy poverty

Hungary will measure the effectiveness of its policy to further reduce heating difficulties by monitoring the share of households that spend at least 25% of their income on energy management (9.8% in 2016). Priority should be given to vulnerable user groups. In connection with this, Hungary will focus primarily on two well-defined social groups: large families living in a family house in small settlements, and pensioners living alone in an apartment complex (and sometimes a family house).

Public transport

In order to slow down the growth rate of energy consumption in the transport sector, it is of outmost importance to develop the public transport system and increase its utilization. Under the Green Bus Program already adopted by the government, nearly 1,300 environmentally friendly local buses are expected to be operational by 2029.

The Mátra Power Plant and its region

Mátra Power Plant is a key player in Hungarian energy sector, providing 13% of domestic electricity production in 2019. Since then, the share of production has fallen. It is also a major regional employer, approximately providing a livelihood for 2,000 workers and their families in the region, and the activities of a 1,000 companies are also closely linked to the plant’s operations.

At the same time, the coal-fired power plant is responsible for 9% of domestic CO2 emissions in 2019, making it the largest emitting facility in Hungary. Since then, carbon dioxide emissions have fallen below 8%. Therefore, it’s clear that without the environmentally and climate-friendly transformation of the Mátra Power Plant, the emission reduction targets set in the domestic policy strategies cannot be achieved. The aim of the project, in addition to carbon offsetting, is to preserve jobs and businesses in the region and to bring about economic development and diversification in the region.

The project also aims to address the challenges of typically low-income households in the area that are still heated with lignite, contributing to the deterioration of air quality in the power plant’s region.

Access to Hungarian NECP documents (HU):

• NECPs of the EU Member States and assessment report of the Commission
• Hungarian NECP with annexes on the webpage of the Hungarian Government
• Regulation (EU) 2018/1999 on the Governance of the Energy Union and Climate Action