Budapest Climate Agency

Budapest Climate Agency (BCA) began operations in June 2024 after being established by the Municipality of Budapest. The agency was established with the primary goal of developing a city-level energy strategy and accelerating decarbonisation with a plan to focus on residential buildings at first and then widen the scope of the BCA’s activities in the following years. 

Buildings are in focus for BCA as this sector is responsible for 60% of the GHG emissions of Budapest, with 38% attributed to the residential energy consumption. This is also a complicated sector to mitigate, which can have a significant positive impact. 

BCA operates as a 100% municipality-owned not-for-profit public benefit limited company. Currently, the agency has a staff of six employees. 

Mission 

The mission of BCA is to: 

• Support municipalities and other property operators in the capital and its districts in promoting sustainable energy use. 

• Develop and implement comprehensive concepts that build bridges between different sectors. 

• Share knowledge and expertise to establish partnerships, inform the public, and develop support programmes. 

• Work on technical solutions that are also accessible to vulnerable groups. 

• Provide examples of how to reduce emissions, primarily by improving the energy efficiency of buildings and using renewable energy sources. 

Activities  

The efforts of the agency are being supported by the European Commission’s 100 Climate-Neutral and Smart Cities Mission. As part of the NetZeroCities pilot project, the agency has a major role in carrying out the “Budapest CARES” (Budapest Climate Agency for the Renovation of HomES) project.  

In addition to these tasks, the Municipality of Budapest expects the BCA to play a coordinating role in other areas of urban climate measures (e.g. building energy efficiency, integration of renewable technologies, renovation strategy for municipal buildings, PED concepts, as well as running comprehensive public awareness programmes) and participating in and initiating international projects that address these areas. 

Key tasks for the BCA include:  

• Completion of the Budapest CARES project 

• Defining the institution’s role and functions within the broader municipal structure 

• Generating pilot projects within and beyond the Budapest CARES framework 

• Designing tailor-made financial schemes and technical support for different buildings and social groups 

• Running public awareness and attitude-shaping campaigns during and after the project. 

• Coordinating key stakeholders involved in deep renovation and building a common platform for them. Participation in national and international collaborations. 

Projects 

During its operations, BCA has participated in several EU/National projects and is planning to take part in further international initiatives. In the framework of the Budapest CARES project, the agency is going to launch two pilot schemes targeting prefabricated multi-apartment buildings and solid fuel replacement: 

• Budapest Green Panel Programme: supporting the renovation of prefabricated buildings with approx. 30% nonrefundable grant and technical expertise. The grant is provided by the city and the participating district municipalities. The overall investment is expected to be HUF 16bn (EUR 40m) 

• TOP+ Replacing Residential Solid Fuel Heating Systems: Awaiting governmental announcement of the call in the framework of Territorial Operational Programme (total budget HUF 1bn, EUR 2.5m). This pilot project is expected to set to launch in 2025 and plans to model the replacement of solid fuel heating systems in Budapest, addressing energy poverty as well as air quality issues. The agency plays a coordinating role in areas that will shape the long-term direction of Budapest’s energy transition.