Hungary Presents Proposals to Accelerate Electromobility Transition


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Hungary submitted an eleven-point package of recommendations on accelerating the switch to electric vehicles to the European Union's Competitiveness Council on Wednesday, according to a report by state news wire MTI.

Presenting the package at a press conference, National Economy Minister Márton Nagy called for coordination at the European level to support EVs, noting that member states' policies were fragmented at present.

He said charging infrastructure needed to be developed and regulatory burdens eased to boost competitiveness, while focusing on technology-neutral processes and circular economy.

Fielding questions, Mr Nagy put the cost of the proposals, tabled at an informal meeting of EU competitiveness ministers in Budapest on Tuesday, at around EUR 100 bln.

Addressing the EU's temporary punitive tariffs on some Chinese EV manufacturers, Nagy said Hungary's government didn't support protectionist measures and warned that the step could lead to the outbreak of a trade war "which wouldn't be good for either side". 

In the 11-point package, the government proposes tightening the Alternative Fuels Infrastructure Regulation to require EV charging infrastructure for light-duty vehicles every 50 km, by 2027, with at least four charging points of 150 kW each, but preferably 300 kW.

It proposes requiring EU-level operators of 80pc of all service stations to provide fast-charging options with capacity of at least 150 kW, but preferably 300 kW, for EVs.

It proposes a Europe-wide subsidy program for public charging station infrastructure, earmarking EUR 15 bln for charging stations and EUR 15 bln for grid upgrades, until 2035, and a further EUR 20 bln scheme for home charging stations, covering 60% of investment cost, or EUR 900-1,500 per station. 

Procedures for issuing permits necessary for power grid upgrades to accommodate charging station infrastructure should be streamlined, and state aid rules should be eased for EV research and development, manufacturing, and supply chains, according to the proposals.

The government proposes offering EUR 4,500 to EU citizens for the purchase of new EVs, funding the EUR 50 bln scheme from revenue from a tax on CO2 emissions over thresholds and the next 2028-34 EU budget. It also proposes specific subsidies for the purchase and leasing of used EVs. 

The government proposes a Europe-wide fleet renewal scheme to accelerate the electromobility transition for commercial vehicles and buses.

To support longer lifespans of EVs, it proposes advancing technology-neutral procedures for replacing batteries or battery parts, while requiring recycling of spent batteries in a framework involving state-supervised certification agencies.

The government proposes allocating EU budget support to make road transport solutions carbon-neutral while prioritizing rail transport.

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