Budapest has been awarded the mission title for climate-neutral cities!

Budapest towards climate neutrality

Budapest was awarded the Mission Label for climate neutral cities! Gergely Karácsony received the award from the European Commission on May 7, 2025 at the 100 Climate-Neutral and Smart Cities Mission conference in Vilnius.

The Municipality of Budapest joined the European Commission’s Mission of 100 Climate-Neutral and Smart Cities in 2022 and prepared its Climate City Contract, which sets out a comprehensive roadmap for achieving climate neutrality. The strategic document aims to reduce carbon emissions by 80% and offset the remaining 20%. The European Commission recognises Budapest’s climate neutrality Action Plan and Investment Plan by awarding it the EU Mission Label. The recognition of the Climate City Contract supports the mobilization of additional EU funds available to Mission Cities and the implementation of climate protection projects.

The aim of the Mission is to make the participating cities hubs of experimentation and innovation in the fight against climate change. Cities play a major role in climate change: 75% of EU citizens live in cities and more than 70% of global CO2 emissions are attributed to cities. Climate change is seriously affecting both city residents and businesses operating in Budapest, therefore, it is in our common interest to do everything we can to minimise the damage. The Municipality of Budapest and the stakeholders of the urban ecosystem are committed to being at the forefront of climate action – to create a liveable and sustainable Budapest.

The Climate City Contract consists of three units:

1. The Commitments document summarises the strategy and action plan to achieve the 2030 target and expresses the commitment of signatories to support the climate-neutrality transition. As the Municipality of Budapest has a direct influence on only 5% of emissions (municipal buildings and institutions: 2%, public transport 2%, other e.g. street lighting, vehicle fleet: 1%), a high level of involvement of the urban ecosystem is a key element in the implementation of the Mission.

2. The Action Plan has been prepared in line with the environmental and development concepts and action plans of the Municipality of Budapest. The strategic objectives set out in the Action Plan include measures to support the decarbonisation of transport, increase energy efficiency, decarbonise electricity generation and involve key stakeholders such as businesses, district authorities and national government.

3. The Investment Plan aggregates municipal resources and quantifies the volume of investments needed to meet climate neutrality targets and identifies cost bearers. The plan demonstrates that reducing urban emissions not only increases

resilience and aids adaptation, but also pays for itself in the national economy over a 10-year timeframe.

Following the adoption of the Climate City Contract, the Municipality of Budapest plans to implement internal capacity building initiatives, awareness raising campaigns, and the development and implementation of a climate budgeting methodology in addition to the coordinated implementation of sectoral projects. Additionally, a cooperation framework is being developed to ensure the active involvement of NGOs and citizens in Budapest.