New Climate Agency in Budapest takes the lead toward a sustainable future

Budapest has taken a key step in its journey towards climate neutrality with the recent establishment of the Budapest Climate Agency. The city faces significant challenges with energy efficiency in its vastly outdated building stock, which is responsible for around 60% of the city’s carbon emissions. Created under the EU’s Climate Neutral and Smart Cities Mission, the new agency aims to support energy-efficient renovations and tackle energy poverty, making it easier for homeowners to access financial products and technical solutions.

Budapest’s Climate Agency follows a global trend seen in cities like London, New York, and Copenhagen, where local climate agencies have been set up to implement sustainable urban policies. Budapest’s agency will operate as a one-stop-shop, collaborating with commercial banks and international financial partners to develop innovative financial models. These will allow private homeowners and institutions to upgrade their buildings, reduce energy consumption, and help the city move closer to its climate neutrality goals.

Beyond financial support, the agency aims to foster community involvement and shape public attitudes around sustainable living, focusing on how energy-efficient practices can become an everyday part of life. This focus on community engagement mirrors efforts seen in other climate agencies around the world, such as Paris, where collaboration with local communities is key to the city’s climate resilience plans.

Budapest’s Climate Agency is part of a broader European effort to address climate change. The establishment of this agency signals Budapest’s determination to accelerate its climate efforts by addressing the energy needs of its residents and transforming the city’s housing stock for a more sustainable future.s and city-wide efforts to cut down on harmful greenhouse gases. 

The Hungarian capital is one of 53 cities selected for the NetZeroCities Pilot Cities Program, part of the broader EU Cities Mission which supports the transition toward climate neutrality.