Dóra Fazekas Carbon Market Implications for new EU - UniCredit ...

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The effects of the EU ETS on Hungarian participants may be divided into two categories. It is
necessary to distinguish between the effects of the scheme on the Hungarian state and on affected
companies. The state had to consider a set of strategic issues related to the introduction and
operation of the scheme, on the one hand. On the other hand, it also had to establish the institutional
framework of the system, and ensure the utilization of auction revenues and the enforcement of
sanctions. At the same time, the system posed administrative burdens for affected companies. For
Hungarian companies, the most important goal was compliance and meeting the requirements of the
scheme. In the author’s opinion, the system was not successful during the pilot phase in reducing
Hungary’s emissions, since it did not manage to motivate the obligated parties. If, however, the
scheme is viewed more as a learning process, it may be said to have been successful.
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