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Government Decree 323/2007. (XII. 11.) Korm.
on the implementation of Act LX of 2007
on the implementation framework of
the UN Framework Convention on
Climate Change and the Kyoto Protocol

thereof
Acting within its original legislative competence conferred under paragraph (1) of Article 35
of the Constitution, and pursuant to the authorization conferred under paragraphs b)-e) and i)
of subsection (5) of Section 14 of Act LX of 2007 on the implementation framework of the
UN Framework Convention on Climate Change and the Kyoto Protocol thereof, the
Government has adopted the following Decree:
Scope of the Decree
Section 1
(1) The Decree shall apply to:
a) legal persons taking part in project activities implemented through international cooperation
as defined in subsection (8) of Section 2 of Act LX of 2007 on the
implementation framework of the UN Framework Convention on Climate Change and
the Kyoto Protocol thereof (hereinafter: Éhvt.),
b) legal persons trading in emission reduction units as defined in subsection (15) of
Section 2 of Éhvt. and certified emission reductions as defined in subsection (17) of
Section 2 of Éhvt.,
c) account holders of the accounts in the national transaction registry as defined in
Section 5 of Éhvt..
(2) In matters not regulated under Sections 3-6 and 20-21 of this Decree, Government Decree
254/2007. (X. 4.) Korm. (hereinafter: Ávr.) on the management of state property shall apply.
(3) In matters not regulated under Sections 20-35 of this Decree, Government Decree
217/1998. (XII. 30.) Korm. on state financial procedures shall apply.
I. General provisions
Definitions
Section 2
For the purposes of this Act:
1) fundamental research: experimental or theoretical work undertaken primarily to
acquire new knowledge of the underlying foundations of phenomena and observable
facts, without any direct practical application or use in view;
2) industrial or applied research: systematic study and investigation that is conducted
primarily to obtain specific, new practical knowledge that can be used for the
development of new products, techniques and services, or for the substantial
improvement of existing products, techniques and services;
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3) state aid: any aid as defined in subsection (1) of Section 87 of the Treaty
Establishing the European Community (hereinafter: EC Treaty) and the de minimis
aid as defined in subsections (1) and (5) of Section 1 of Government Decree
85/2004. (IV. 19.) Korm. on procedures related to State aid under subsection (1) of
Section 87 of the Treaty Establishing the European Community and the map for the
grant of regional aid (hereinafter: Government Decree 85/2004);
4) Investor: a Party included in Annex I of the UN Framework Convention on Climate
Change (hereinafter: Framework Convention) promulgated by Act LXXXII of 1995,
which has ratified the Kyoto Protocol (hereinafter: Protocol) and in accordance with
the international commitments is eligible to acquire verified emission reduction units
from joint implementation projects, and any legal entity authorised by such a Party to
acquire emission reduction units;
5) independent joint implementation project verifier: a legal person with a registered
office either in Hungary or abroad that is accredited to verify joint implementation
projects pursuant to a separate legal instrument;
6) initial investment: an investment in material and immaterial assets relating to the
setting up of a new establishment, the extension of an existing establishment,
diversification of the output of an establishment into new additional products or a
fundamental change in the overall production process of an existing establishment, or
the acquisition of such establishment;
7) small and medium sized enterprises (hereinafter: SMEs): enterprises as defined in
subsection (1) of Section 3 of Act XXXIV of 2004 on Small and Medium-sized
Enterprises and the Support Provided to Such Enterprises;
8) experimental development: the acquiring, combining, shaping and using of existing
scientific, technological, business and other relevant knowledge and skills for the
purpose of producing plans and arrangements or designs for new, altered or improved
products, processes or services. These may also include, for example, other activities
aiming at the conceptual definition, planning and documentation of new products,
processes and services. The activities may comprise producing drafts, drawings, plans
and other documentation, provided that they are not intended for commercial use;
9) direct emission reduction with double counting impact: a joint implementation project
realised in Hungary is considered to have direct double counting impact if compared
to the baseline emissions of the installation, the project results in the reduction or
limitation of the emission of greenhouse gases specific for that installation, and the
installation or in case of more than one installation, the installations that can be
individually identified fall under the scope of Annex I of Act XC of 2005 on the trade
of greenhouse gas emission allowances (hereinafter: Üht.);
10) indirect emission reduction with double counting impact: a joint implementation
project realised in Hungary is considered to have indirect double counting impact, if it
results in the reduction or limitation of the emission of greenhouse gases concerning a
group of installations under the scope of Annex I of Üht. that cannot be individually
identified;
11) research and development: research and development as defined in paragraph b) of
Section 12 of Act XC of 2003 on the Research and Technological Innovation Fund;
12) research and development project grant: aid granted to projects aiming at fundamental
research, industrial or applied research or experimental development;
13) large investment project: an initial investment in capital assets with an eligible
expenditure of above EUR 50 million calculated in HUF at present value; a large
investment project will be considered to be a single investment project when the initial
investment is undertaken within a period of three years by the same undertaking or
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undertakings and consists of fixed assets combined in an economically indivisible
way. To assess whether an initial investment is economically indivisible, the technical,
functional and strategic links and the immediate geographical proximity shall be taken
into account. The economic indivisibility will be assessed independently from
ownership. For the conversion to euros the prices and exchange rates on the date when
the aid is granted shall apply; in case of large investment projects which are notified
individually according to Government Decree 85/2004, the prices and exchange rates
on the date of the date of notification shall be applied;
14) international commitments: the Framework Convention, the Protocol promulgated by
Act IV of 2007 on the promulgation of the Kyoto Protocol adopted in 1997 at the 3rd
Conference of the Parties to the UN Framework Convention on Climate Change and
the decisions qualifying as international agreements adopted by the Parties;
15) own resources: financial contribution by the beneficiary to the development project
that does not involve resources originating from state aid;
16) project developer: a legal person with registered office in Hungary that carries out
the emission reduction activity in a joint implementation project realised in Hungary,
or in case of more than one project developer, the legal person acting as a
representative authorised by such project developers;
17) account holder: the account holder of an operator holding account or a person holding
account created in accordance with Articles 15 and 19 of Commission Regulation
(EC) No 2216/2004 of 21 December 2004 for a standardised and secured system of
registries pursuant to Directive 2003/87/EC of the European Parliament and of the
Council and Decision No 280/2004/EC of the European Parliament and of the Council
(hereinafter: Regulation 2216/2004/EC);
18) aid intensity: the ratio of the aid content and the discounted value of eligible costs,
expressed as a percentage;
19) aid content: the value of the aid granted to the beneficiary calculated based on the
methodology provided in Annex 2 of Government Decree 85/2004;
20) Buyer: a Party taking part in international emissions trading or a legal person that is
authorised to trade in assigned amount units by a Party.
Asset management of assigned amount units
Section 3
The National Treasury Asset Management Private Limited Company (hereinafter: MNV Zrt.)
shall enter into an asset management contract, as defined in Ávr., with the Minister
responsible for environmental protection (hereinafter: Minister), who acts as the legal trustee
of the units, within 15 days after the communication prescribed in subsection (7) of Section 9
of Éhvt.
Section 4
In addition to the obligatory elements prescribed by Ávr., the asset management contract – in
view of the specific nature of assigned amount units – shall include in particular:
a) definition of the given commitment period;
b) the total amount of assigned amount units generated for the commitment period;
c) the identification codes connected to the assigned amount units;
d) the date when the assigned amount units have entered into the Treasury’s assets;
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e) the information obligation towards the MNV Zrt. about the retreat and cancellation of
Kyoto units; and
f) the contents of the reporting obligation according to Section 5.
Section 5
The contents of the asset management contract under Ávr. are determined by the Parties to the
contract in a way that
a) the amount and the change in the amount of assigned amount units that belong to the
Treasury’s assets can be established,
b) the Minister sends the National Emission Inventory and the forecasts to be provided for
the National Registration System to MNV Zrt. annually,
c) the value of the assigned amount units does not form part of the inventory, and
d MNV Zrt. is authorised to acquire information about the account holding assigned amount
units belonging to the Treasury’s assets through the operator of the national transaction
registry.
Section 6
(1) Kyoto units, being limitedly transferable intangible assets, can be freely transferred once
having ceased to belong to the Treasury’s assets.
(2) The date when Kyoto units cease to belong to the Treasury’s assets and the title of
ownership is gained by the new holder is the date of registration in the transaction registry.
National transaction registry
Section 7
(1) A Kyoto unit can only be held on one account of the national transaction registry at a
given point of time.
(2) The account holder is authorised to hold emission reduction units and certified emission
reductions on his operator holding account.
(3) On a person holding account emission reduction units and certified emission reductions
can only be held by legal persons having authorisation pursuant to Sections 17-18.
(4) Account holders of operator holding accounts and person holding accounts are hereby
authorised to acquire and sell the allowances defined in Üht. and to hold them on their
accounts.
Account maintenance fee
Section 8
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(1) The amount of maintenance fee that shall be paid for the authentic registration and
management of Kyoto units (hereinafter: account maintenance fee) is stipulated in Annex 1.
(2) The account maintenance fee shall be paid to the special appropriation account Nr.
10032000-00287261-00000000 of the Treasury. The account maintenance fee is the revenue
of the operator of the national transaction registry that it shall be expended on the operation
thereof.
(3) In matters not regulated under this Decree, such as the rules of paying the account
maintenance fee and the legal consequences of non-performance, Government Decree
213/2006. (X. 27.) Korm. on the implementation of Act XC of 2005 on the trade of
greenhouse gas emission allowances shall apply.
II. Rules of procedure of project activities
implemented through international co-operation
Section 9
Legal persons with registered office in Hungary may apply for the endorsement and approval
of a joint implementation project to be realised in Hungary, and for the approval of their
participation in a joint implementation project or a clean development mechanism project to
be realised outside the territory of Hungary.
Rules of procedure for the approval of joint implementation projects to be realised in the
territory of the Republic of Hungary
Section 10
(1) Application for the endorsement of a joint implementation project to be realised in
Hungary shall be submitted both electronically and in writing to the Ministry of
Environment and Water (hereinafter: Ministry) according to the Project description
prescribed in Annex 2 (hereinafter: Project description). In the application the applicant shall
declare that the joint implementation project will not have direct double counting impact
pursuant to subsection (9) of Section 2 or indirect double counting impact pursuant to
subsection (10) of Section 2, or that the project is included in the reserve established in the
National Allocation Plan for the period of 2008-2012.
(2) Within 8 days after the submission of the complete application, the Ministry registers the
joint implementation project. If the application does not conform to the requirements
prescribed in subsection (1), the Ministry calls the applicant to complete the documentation
with a deadline of 15 days.
(3) The Ministry publishes on its official website the title of the joint implementation project
and the project data in subparagraphs 1.1, 1.2 and 5-7 of Annex 2.
(4) Within 30 days after the submission of the complete application, the Minister sends the
Project description to the Ministers responsible for agriculture and rural development,
economic affairs and transport, foreign affairs, local government and regional development,
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financial affairs, and to the Minister leading the Prime Minister’s Office (hereinafter: the
ministers concerned) with a deadline for comments of 10 days. If no comment is given
within the deadline, it shall be assumed that it supports the Minister’s view.
(5) Within 45 days after the submission of the complete application, the Minister – taking
into account the comments provided by the ministers concerned – shall issue a Letter of
Endorsement based on the Project description for the joint implementation project, or shall
reject the project.
(6) The Project developer shall be notified of the decision within 8 days. The rejection of the
project shall be accounted for in the notification.
(7) In order to be endorsed, a joint implementation project shall fulfil the following criteria:
a) it shall contain all data prescribed in Annex 2,
b) the greenhouse gas emissions to be reduced or limited by the project shall be included
in the National Registration System and the preliminary greenhouse gas calculations
shall conform to the calculation methods and emission factors applied in the National
Registration System,
c) it shall be in accordance with the requirements prescribed by the international
commitments,
d) according to the preliminary calculations provided, the project shall lead to the net
emission reduction of emissions of anthropogenic origin calculated in carbon dioxide
equivalent (environmental additionality),
e) according to the preliminary calculations provided, it cannot be realised in an
economically sound way without the transfer of the generated emission reduction
units (financial additionality),
f) the realisation of the project is not prescribed by any act or legal instrument in force
(legal additionality),
g) if it involves hydroelectric power production project activities with a generating
capacity exceeding 20 MW, it shall respect the relevant international criteria and
guidelines, including those contained in the World Commission on Dams November
2000 Report “Dams and Development - A New Framework for Decision-Making”;
h) the planned emission reduction of the project can be compensated for from the
reserve established by the National Allocation Plan for the period of 2008-2012
pursuant to Section 16 and the rules of the National Allocation Plan,
i) the Project developer is not under insolvency, liquidation or dissolution proceedings
and it does not have public debts overdue by more than 90 days,
j) it shall not aim at the establishment or development of facilities using nuclear energy,
k) if the project involves reforestation or afforestation, it shall be conducted pursuant to
Act LIV of 1996 on forests and the protection of forests and the principles and
requirements adopted by the Forest Stewardship Council, duly observing the
ecological capacity of the given area,
l) it shall not have direct or indirect double counting impact on the European Union
greenhouse gas emissions trading system unless the accounting performed is in
accordance with Section 16, and
m) the realisation of the project has not started before the issuance of the Letter of
Endorsement unless evidence is provided that the project would not be completed
without the additional financial resources originating from the project due to a
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substantial change in circumstances which has arisen after the starting of the
realisation of the project.
(8) The Minister shall make the decision defined in subsection (5) based on:
a) the requirements set forth in subsection (7),
b) the considerations set forth in subsections (1)-(2) of Section 20, and
c) the compatibility of the project with the National Environmental Protection
Programme, the National Climate Change Strategy and the professional strategies in
accord therewith.
Section 11
(1) The Project design document of the joint implementation project shall be submitted to the
Ministry pursuant to Annex 3 within 6 months after the issuance of the Letter of
Endorsement for approval. It shall be submitted both electronically and in writing.
(2) The Project developer shall attach a Determination Report prepared by an independent
joint implementation project verifier to the Project design document, according to which the
project fulfils all criteria laid down in subsection (8).
(3) If the Project design document does not conform to the requirements prescribed in
subsections (1)-(2), the Ministry calls the Project developer to complete the documentation
with a deadline of 15 days.
(4) The complete Project design document shall be published on the official website of the
Ministry.
(5) Within 90 days after the submission of the complete application, the Minister sends the
Project description to the concerned ministers with a deadline for comments of 30 days. If no
comment is given within the deadline, it shall be assumed that it supports the Minister’s
view. In case of disagreement, a meeting shall be held within 5 days with the invitation of all
concerned ministers.
(6) Within 130 days after the submission of the complete application, the Minister – taking
into account the comments provided by the concerned ministers – shall issue a Letter of
Approval based on the Project design document for the joint implementation project, or shall
reject the Project design document.
(7) The Project developer shall be notified within 8 days after the issuance of the Letter of
Approval or the rejection of the Project design document. The rejection of the Project design
document shall be accounted for in the notification.
(8) In order to be approved, a joint implementation project shall fulfil the following criteria:
a) it shall comply with the requirements laid down in paragraphs c)and f)-m) of
subsection (7) of Section 10,
b) based on the detailed calculations submitted in the Project design document, it shall
be in accordance with the criterion of environmental additionality,
c) based on the detailed financial calculations and cash-flow data submitted in the
Project design document, it shall be established that the project is in line with the
Information Note on financial additionality published by the Minister, and
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d) the greenhouse gas emissions to be reduced or limited by the project shall be
included in the National Registration System and the greenhouse gas calculations
submitted in the Project design document shall conform to the calculation methods
and emission factors applied in the National Registration System.
(9) By the Letter of Approval the Minister confirms that the joint implementation project is
in accordance with Article 6 of the Protocol.
(10) The Letter of Approval is issued for the period requested by the applicant, but at longest
until 31 December 2012.
(11) Based on the Letter of Approval emission reduction units can only be generated for
verified emission reductions realised after 1 January 2008.
(12) The Letter of Approval does not exempt the Project developer from the obligation of
obtaining the necessary permissions for the realisation of the joint implementation project.
Submission of the emission reduction purchase agreement
Section 12
(1) Within 90 days after the receipt of the Letter of Approval, the Project developer shall
submit the emission reduction purchase agreement concluded with the Investor.
(2) In the emission reduction purchase agreement the maximum amount of emission
reduction units to be transferred shall be determined in a way that the amount of the emission
reduction units transferred cannot exceed 90% of the verified net emission reduction
achieved by the joint implementation project and the value of the emission reduction units
transferred cannot exceed 130% of the total cost of the joint implementation project.
Monitoring joint implementation projects realised
in the territory of the Republic of Hungary
Section 13
(1) The Project developer shall submit an annual report on the realisation and operation of
the approved joint implementation project until 31 March every year; in addition, in
exceptional cases the Minister may call the Project developer to submit an extra report
within 30 days. The contents of the annual report are prescribed by Annex 4. The report shall
be submitted both electronically and in writing.
(2) To the annual report the Project developer shall attach a verification report prepared by
an independent joint implementation project verifier (hereinafter: Joint Implementation
Verification Report), the contents of which are prescribed by a separate legal instrument.
The Verification Report validates the emission reduction achieved by the project in the given
period and confirms that the project has been carried out in conformity with the Project
design document.
(3) If the Project developer fails to meet the deadline defined in subsection (1), the Minister
calls him to comply with the reporting obligation with a deadline of 15 days.
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(4) Pursuant to the international commitments, the Minister prepares an annual report about
the project activities implemented through international co-operation.
(5) The Project developer shall report to the Minister a change in the data supplied in the
course of the approval procedure within 10 days after the change has taken place.
(6) The report defined in subsection (1) – except for the financial report and the results of
internal audits – and the Joint Implementation Verification Report defined in subsection (2)
shall be published on the official website of the Ministry.
Withdrawal of the Letter of Approval
Section 14
The Minister shall withdraw the Letter of Approval if the Project developer
a) withholds an important fact, data or circumstance or reports an untruthful fact or
supplies false data in the course of the procedure laid down in Sections (10)-(11) in
order to obtain the Letter of Endorsement or the Letter of Approval, within 8 days
after having come to the knowledge of such occurrence;
b) fails to submit to the Ministry the emission reduction purchase agreement concluded
with the Investor within 90 days after the receipt of the Letter of Approval, or if the
agreement fails to comply with the requirements set down in subsection (2) of
Section 12;
c) in spite of the call for compliance, he fails to observe the reporting obligation
pursuant to Section 13 within the deadline;
d) fails to comply with the obligation of paying the supervisory fee defined in Section
13 of Éhvt. within the deadline and pursuant to the provisions set forth in a separate
legal instrument.
Transfer of the emission reduction units generated by joint implementation projects
realised in the territory of the Republic of Hungary
Section 15
(1) The joint implementation project results in the generation of emission reduction units in
accordance with the international commitments. The amount of emission reduction units
generated shall be in conformity with the verified net emission reduction realised by the
project and shall not exceed the limits set down in subsection (2) of Section 12.
(2) The requirements for the transfer of the emission reduction units are the following:
a) valid Letter of Approval,
b) valid emission reduction purchase agreement, and
c) the submission of the Joint Implementation Verification Report defined in subsection
(2) of Section 13 attached to the annual report defined in subsection (1) of Section 13
with a non-negative verification clause, and
d) if the Investor is not a Party included in Annex I of the Framework Convention, a
valid authorisation by a Party provided to the Investor.
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(3) The Project developer shall apply to the Ministry for the transfer of the emission
reduction units by submitting a request pursuant to the requirements of subsection (2).
(4) The Minister shall make a decision in writing on the transfer of emission reduction units
within 30 days after the submission of the application. If the application fails to comply with
the requirements of subsection (2), the Minister shall reject it. The rejection of the
application shall be accounted for.
(5) Based on the Minister’s decision, the operator of the national transaction registry shall
perform the transfer of the emission reduction units pursuant to the limits set down in
subsection (2) of Section 12 and in accordance with the emission reduction purchase
agreement to the account of the Investor if the Investor is a Party or to the account specified
by the Investor having valid authorisation until 31 May of the year following the given year of
the commitment period.
Accounting the emission reduction achieved by a joint implementation project having direct
or indirect double counting impact realised in the territory of the Republic of Hungary within
the European Union greenhouse gas emission allowance trading scheme
Section 16
(1) Emission reduction units generated by joint implementation projects of direct or indirect
double counting impact between 1 January 2008 and 31 December 2012 in the territory of the
Republic of Hungary can only be transferred if the same amount of allowances defined in
Üht. are cancelled simultaneously from the reserve for joint implementation projects specified
in a separate legal instrument. The decision on the transfer of emission reduction units and the
cancellation of allowances shall be made by the Minister.
(2) Based on the decision defined in subsection (1), the operator of the national transaction
registry shall perform the transfer of emission reduction units to the account specified by the
Investor at the same time as the cancellation of the same amount of allowances from the
reserve specified in subsection (1).
Regulation on joint implementation projects and clean development mechanism projects
realised outside the territory of the Republic of Hungary
Section 17
(1) Legal persons with registered office in Hungary may apply to the Minister for the
approval of acting as Investor in joint implementation projects and clean development
mechanism projects to be realised outside the territory of the Republic of Hungary and of
acquiring a percentage of the emission reduction units or certified emission reductions
generated by such projects pursuant to the provisions made by the contracting parties and
observing the legislation of the foreign State.
(2) The application defined in subsection (1) shall be submitted to the Ministry both
electronically and in writing with the contents specified in Annex 2, and it shall be certified
that the applicant is not under insolvency, liquidation or dissolution proceedings and it does
not have public debts overdue by more than 90 days.
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(3) Within 8 days after the submission of the complete application the Ministry registers the
project. If the application does not conform to the requirements prescribed in subsection (1),
the Ministry calls the applicant to complete the documentation with a deadline of 15 days.
(4) The Ministry publishes on its official website the title of the project and the project data
specified in subparagraphs 1.1, 1.2 and 5-7 of Annex 2.
(5) If the project complies with the international commitments, within 45 days after the
submission of the complete application the Minister shall approve the participation in the
joint implementation project or clean development mechanism project; otherwise, the
Minister shall reject the application.
(6) The applicant shall be notified of the decision within 8 days. The rejection of the project
shall be accounted for in the notification.
Approval of trading in emission reduction units or certified emission reductions
Section 18
(1) Legal persons with registered office in Hungary may submit an application to the
Minister for the approval of purchasing and selling emission reduction units, certified
emission reductions and to hold such units on a person holding account in the national
transaction registry. Legal persons with an authorisation defined in Section 17 shall submit
the application pursuant to Section 19.
(2) The application defined in subsection (1) shall be submitted to the Ministry both
electronically and in writing and it shall contain the following:
a) name, registered office, address, telephone number and electronic address of the
applicant, and
b) name, address, telephone number and electronic address of the contact person
appointed by the applicant;
and it shall be certified that the applicant is not under insolvency, liquidation or dissolution
proceedings and it does not have public debts overdue by more than 90 days.
(3) Within 8 days after the submission of the complete application the Ministry registers the
application. If the application does not conform to the requirements prescribed in subsection
(2), the Ministry calls the applicant to complete the documentation with a deadline of 15
days.
(4) Within 30 days after the submission of the complete application, the Minister approves or
rejects the application. Approval on the first occasion is valid for one year.
(5) The applicant shall be notified of the decision within 8 days. The rejection of the project
shall be accounted for in the notification.
(6) The name of registered applicants and the fact of approval or rejection shall be published
on the official website of the Ministry.
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(7) Legal persons whose application was approved pursuant to subsection (4) shall submit an
annual report with the contents specified in Annex 5. The annual report shall be submitted
both electronically and in writing.
(8) At the submission of the annual report defined in subsection (7) the legal person may
request the extension of the authorisation period defined in subsection (4) until 31 December
2012. The procedure for the approval or rejection of the request shall be conducted pursuant
to subsections (3)-(6).
Section 19
(1) Legal persons with an authorisation defined in Section 17 may submit an application for
the approval of trading in the emission reduction units and certified emission reductions
originating from the projects realised and to hold such units on a person holding account in
the national transaction registry. The application shall be submitted to the Ministry both
electronically and in writing pursuant to Annex 6.
(2) In case of clean development mechanism projects the applicant shall also submit
a) the Project design document in Hungarian or English containing the elements
specified Annex 2,
b) the Letter of Approval issued by the host country, and
c) the Validation Report prepared by a Designated Operational Entity as defined in
subsection (5) of Article 12 of the Protocol.
(3) The procedure for the approval or rejection of the application shall be conducted pursuant
to subsections (3)-(6) of Section 17; the deadline of the procedure, however, may be
extended by 15 days in cases where such extension is justified and the approval by the
Minister shall be valid until 31 December 2012.
III. Regulation of international emissions trading conducted by the Hungarian State
Conditions for selling assigned amount units
Section 20
(1) The decision proposal by the Minister on the sale or purchase of assigned amount units
shall be based on the following:
a) the communication published pursuant to subsection (6) of Section 9 of Éhvt.,
b) the National Emission Inventory,
c) the summary of the forecasts prepared pursuant to subsection (3) of Section 4 of Éhvt.,
d) the expected performance of the international commitments undertaken by Hungary,
including the obligation defined in subsection (4) of Section 9 of Éhvt.,
e) market mechanisms and price levels in the field of international emissions trading, and
f) the principle of the cost-effective realisation of emissions reductions.
(2) The Minister may sell assigned amount units based on his decision proposal, with the
assent of the Minister of Finance.
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(3) The Minister of Finance shall give his assent to the decision proposal defined in
subsection (2) within 15 days. It shall be assumed that the Minister of Finance has given his
assent if he does not propose an amendment based on professional considerations to the
decision proposal within 15 days after the receipt thereof.
Contract on the transfer of assigned amount units
Section 21
(1) If the Minister - based on the considerations laid down in subsection (1) of Section 20 and
the highest available price amongst the given market conditions - accepts the purchase offer
made by the Buyer, and the Minister of Finance has given his assent, the Minister shall
conclude the contract on the transfer of assigned amount units.
(2) Assigned amount units may be transferred to the Buyer at the date of the financial
performance of the purchase price.
(3) Within 30 days after the financial performance, the Minister shall inform the Minister of
Finance about:
a) the fact of the sale,
b) the amount of assigned amount units sold,
c) the purchase price of the assigned amount units, and
d) pursuant to subsection (3) of Section 10 of Éhvt., his proposal on the use of revenues
generated by the sale.
IV. Green Investment Scheme
Objectives of the Green Investment Scheme
Section 22
(1) The revenue originating from the financial performance of the sale of assigned amount
units pursuant to Section 20 shall be used by the Ministry to operate a Green Investment
Scheme.
(2) Within the framework of the Green Investment Scheme, based on the invitation for
applications in accordance with this Decree, financial support may be granted in order to
promote the objectives defined in subsection (3) of Section 10 of Éhvt.
(3) To a maximum of 5% of the resources at disposal the Minister may decide to make
expenditure on operational costs in connection with the operation of the Green Investment
Scheme.
(4) The tasks of management, decision drafting and supervision of the funds defined in this
Decree are carried out by the Ministry.
Requirements for funding
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Section 23
(1) Pursuant to this Decree, the following aids falling under the scope of subsection (1) of
Article 87 of the EC Treaty may be granted:
a) de minimis aid;
b) training aid;
c) research and development aid; and
d) regional investment aid.
(2) Aid defined in subsection (1) may be
a) grant, within that
aa) grant,
ab) interest rate subsidy,
b) refundable aid,
c) other payment.
(3) Within the framework of the Green Investment Scheme – unless otherwise regulated in an
international agreement - aid may be given to legal persons with registered office in Hungary,
organisations without legal personality, business associations without legal personality,
Hungarian branches of a foreign company, licensed private entrepreneurs and natural persons.
(4) Interest rate subsidy may be provided for the term defined in the credit agreement between
the beneficiary and the financial institution, but for no more than a maximum of 2 years after
the given year. The extent of interest grant may be up to 100% of the interest to be paid,
taking into account the aid intensity defined in Government Decree 85/2004.
(5) Depending on the nature of the objective supported, pursuant to the conditions laid down
in the invitation for applications, advance payment may be provided.
(6) The Minister shall publish in the invitation for applications and shall inform the
beneficiary of the aid (hereinafter: beneficiary) in writing in the aid contract about the type of
aid he receives from among the types defined in subsection (1). The information provided by
the Minister shall explicitly refer to the European Commission Regulation that applies to the
given aid type, by stating its exact title and the promulgation in the Official Journal of the
European Communities, and it shall state the exact amount of aid expressed in grant
equivalent.
De minimis aid
Section 24
(1) Aid provided under paragraph a) of subsection (1) of Section 23 falls under the scope of
Commission Regulation (EC) No 1998/2006 of 15 December 2006 on the application of
Articles 87 and 88 of the Treaty to de minimis aid (HL L 379/5. 2006. 12. 28.).
(2) As a prerequisite of receiving de minimis aid, the beneficiary shall make a declaration
about the grant equivalent of other de minimis aids received during the three previous fiscal
years.
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(3) At each decision concerning the grant of de minimis aid, the total amount of de minimis
aids granted in the fiscal year concerned and during the two previous fiscal years shall be
taken into account.
Training aid
Section 25
(1) Aid provided under paragraph b) of subsection (1) of Section 23 falls under the scope of
Commission Regulation (EC) No 68/2001 of 12 January 2001 on the application of Articles
87 and 88 of the EC Treaty to training aid (HL L 10/20. 2001. 1. 13.).
(2) Training aid may be granted for general training and specific training.
(3) The detailed rules for granting training aid are defined in Annex 7.
(4) The intensity of all aids originating from State resources provided for individual projects
(having the same eligible costs), including de minimis aid, shall not exceed the limits defined
in Annex 7.
Research and development aid granted for small and medium-sized enterprises
Section 26
(1) Aid provided under paragraph c) of subsection (1) of Section 23 for research and
development (hereinafter: R+D) projects, the preparation of technical feasibility studies and
patent costs falls under the scope of Commission Regulation (EC) No 70/2001 of 12 January
2001 on the application of Articles 87 and 88 of the EC Treaty to State aid to small and
medium-sized enterprises (HL L 10/33. 2001. 1. 13.).
(2) The detailed rules for granting R+D aid are defined in Annex 8.
(3) The intensity of any aid granted for R+D projects concerning the same eligible costs
cannot exceed the limits defined in Annex 8.
Regional investment aid
Section 27
(1) Aid provided under paragraph d) of subsection (1) of Section 23 for regional investment
falls under the scope of Commission Regulation (EC) No 1628/2006 of 24 October 2006 on
the application of Articles 87 and 88 of the EC Treaty to national regional investment aid (HL
L 302/29. 2006. 11. 01.).
(2) Regional investment aid can only be granted for an initial investment that leads to a net
reduction of greenhouse gas emissions by the beneficiary.
(3) Pursuant to this Decree regional investment aid may only be granted if the beneficiary
submits the application before starting the investment, and the Ministry confirms in writing
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that the project – in principle, and subject to further, detailed examination – fulfils the criteria
defined in this Decree for receiving aid.
(4) The aid can only be granted if the beneficiary assumes the obligation of maintaining the
investment in the recipient region for at least five years, or three years in the case of SMEs
(obligatory operational period), after the completion of the investment (the date of starting the
operation).
(5) The requirement in subsection (4) shall not prevent the replacement of plant or equipment
which has become out-dated within the period referred to due to rapid technological change,
provided that economic activity is retained in the region concerned for the minimum period.
During the obligatory operational period the replacement of the out-dated plant or equipment
and after its replacement the beneficiary cannot receive aid for the replacement of the plant or
the development.
(6) Material assets purchased by using a grant may only be used in accordance with the
objectives determined in the invitation for applications and the grant agreement until the
completion of the closing records (end of the maintenance period). Property created by the
investment supported by the scheme – if it becomes the property of the beneficiary – can only
be transferred or hired out with the preliminary approval of the Minister until the expiry of the
obligations prescribed in the grant agreement. If the Minister gives his approval to the
transfer, the beneficiary is exempted from the obligation of repaying the grant. In the absence
of such approval, the beneficiary shall repay the part of the grant equivalent to the value of the
material asset and the interests accumulated from the disbursement of the grant until the
repayment, multiplied by the twofold value of the prevailing central bank base rate at the time
of the transfer of the property.
(7) Under this Decree, investment grant cannot be provided to:
a) projects where costs (except for preliminary studies) have arisen before the
publication of the programme on the website of the Ministry pursuant to subsection
(1) of Section 28,
b) steel industry activities,
c) shipbuilding, repair or remodelling of ships,
d) coalmining,
e) activities in the synthetic fibres sector,
f) investments in fisheries and aquaculture activities pursuant to Council Regulation
(EC) No 104/2000 of 17 December 1999 on the common organisation of markets in
fishery and aquaculture products and investments in the processing and trade of
fishery products,
g) the transport sector, to the purchase of transport equipment (movable assets),
h) the primary production of agricultural products,
i) an organisation under insolvency, liquidation or dissolution proceedings, and
j) firms in difficulty that fit one of the criteria below:
ja) according to the last report available at the date of the submission of the
application, the own funds of the company does not amount to half of the
subscribed capital due to losses,
jb) in case of a company functioning under the limited liability of its members,
the initial capital has decreased by more than 50%, and more than 25% of the
reduction took place during the previous 12 months,
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jc) in case of a company where at least some of the members’ liability is
unlimited, the capital stated in the company books has decreased by more
than 50%, and more than 25% of the reduction took place during the
previous 12 months,
jd) the company fits the criteria for collective insolvency procedures prescribed
in a separate legal instrument, or
je) the company is insolvent, or collective insolvency proceedings has been
started against the company pursuant to a separate legal instrument.
(8) The starting date of work of the projects receiving a grant shall be the date of:
a) in case of a project involving construction activities:
aa) the first entry in the construction records (certified by the construction
records),
ab) at such construction activities where the keeping of construction records is
not obligatory, the date submitted in a declaration by the subcontractor –
based on the construction contract – concerning the start of construction
works;
b) placing an order for the first machine, equipment, material, product, etc. in case of
projects involving the purchase thereof,
c) in case of projects involving other activities, placing an order prior to the conclusion
of the contract or in the absence of a previous order, the date of concluding the first
contract for the implementation of the project,
d) if the project receiving the grant involves several areas (construction, purchase of
machinery, etc.), the earliest starting date of any of the activities corresponding to
the target areas.
(9) Ordering and preparing preliminary studies shall not be considered as the starting of work
pursuant to subsection (8).
(10) The detailed rules for granting regional investment aid are prescribed in Annex 8.
(11) The aid intensity of regional investment aid cannot exceed the rates defined in Annex 9.
Application procedure
Section 28
(1) The Minister shall publish the invitation for applications on the website of the Ministry
and in the official journal of the Ministry. The fact of publication, with reference to the place
of publication, shall be published in two national dailies as well.
(2) The application shall be submitted to the Ministry within the deadline and with the format
and contents determined in the invitation for applications.
(3) The applicant shall dispose of own resources to the extent defined in the invitation for
applications and shall provide it according to the conditions determined therein.
Section 29
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(1) The applicant - unless otherwise prescribed by the invitation for applications – shall pay a
non-recurring application fee at the submission of the application, which is
a) HUF 5 000 at grant requests equal to or being less than HUF 1 000 000,
b) HUF 10 000 at grant requests between HUF 1 000 001 and 5 000 000,
c) HUF 25 000 at grant requests between HUF 5 000 001-10 000 000,
d) HUF 50 000 at grant requests between HUF 10 000 001-50 000 000,
e) HUF 100 000 at grant requests equal to or being more than HUF 50 000 001.
(2) The mode of payment of the application fee shall be determined by the invitation for
applications.
(3) The application fee defined in subsection (1) does not have to be paid again if the
application that did not correspond to the prescribed criteria is re-submitted within 10 working
days after the receipt of the application.
Decision on the applications
Section 30
(1) The applications are admitted by the Ministry continually. The applicant shall be informed
about the admission of the application.
(2) By opening the admitted applications, the Ministry verifies whether they correspond to the
prescribed criteria within 15 working days. Applications that do not correspond to the
prescribed criteria shall be sent back to the applicant; applications fitting the criteria shall be
registered by the Ministry.
(3) The Ministry shall evaluate the applications – taking into account the objectives of the
application and with the participation of external experts, if necessary - fitting the criteria
prescribed in the invitation for applications within 20 working days after the deadline defined
in subsection (2). The evaluation deadline may be extended by 30 days by the decision of the
Minister in case of applications that are considered as complex based on the invitation for
applications. As a part of the evaluation, on-site examination may be held.
(4) The Ministry shall rank the evaluated applications.
Section 31
(1) The Minister shall make a decision on the submitted applications in writing.
(2) The Minister shall send his proposal on the decision concerning the grant to the concerned
ministers with a deadline for comments of 8 days.
(3) The Minister shall make the decision defined in subsection (1) – taking into account the
comments provided by the concerned ministers – within 90 working days after the submission
of the complete application.
Section 32
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(1) The Ministry shall regularly prepare an information brochure on the decisions within the
framework of the Green Investment Scheme; the brochure shall be published on the website
of the Ministry within 10 working days after the date of the decision and in the official journal
of the Ministry published after the date of the decision.
(2) The information brochure shall contain the name of the beneficiary, the object of the grant,
the place of the realisation of the project and the amount of the grant.
The grant agreement and its modification
Section 33
The grant agreement with the beneficiary – if all criteria for the conclusion of the contract
have been fulfilled – shall be concluded by the Minister or by the person appointed by the
Minister to conclude the contract on the Minister’s behalf. The beneficiary shall conclude the
contract within the deadline set by the Ministry, but not later than within 270 days after the
receipt of the decision.
Section 34
(1) The grant agreement may be modified due to reasons not imputable to the beneficiary, vis
maior or a change in data, or if there arises a new fact that was not known at the time of the
decision on the application and it represents a substantial change concerning the grant.
(2) The request for the modification of the grant agreement shall be submitted to the Ministry.
(3) The Minister shall evaluate the request and – with his proposal on the decision – shall send
it to the concerned ministers with a deadline for comments of 15 days, except for a request for
modification due to the change of data and except for the case defined in subsection (4). The
Minister or the person appointed by the Minister to act on the Minister’s behalf shall take into
account the comments provided and shall decide on the modification within 10 days.
(4) The grant agreement may be modified without consulting the concerned ministers if the
requested modification is to extend the deadline for termination for the first time and the
extension does not exceed 120 days. The deadline for submitting such a request is the 30th
day prior to the last day of the deadline for termination.
Supervision of funding
Section 35
(1) The objectives of the supervision of funding provided within the framework of the Green
Investment Scheme are the following:
a) promoting the proper use of funds,
b) identifying functional problems of the Green Investment Scheme and based on this
information, taking the necessary measures,
c) supervising the emissions reduction realised by the supported investment pursuant to
the methods prescribed in the invitation for applications.
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(2) The use of funding is supervised by the Ministry and by other organisations defined in
separate legal instruments and in the grant agreement. The Ministry may authorise external
experts or expert organisations to carry out the supervision.
(3) The supervision shall be carried out at the payment of funding, during the use of the
funding and after the termination of funding. As a part of the supervision, on-site supervision
may be held.
(4) If the use of funding is not proper, it is contradictory to the grant agreement or it differs
from the provisions thereof, it shall be recorded by the supervisory body. The supervisory
body shall immediately make a proposal to the Ministry for the necessary arrangements. The
beneficiary shall sign the records; the refusal of signing the records shall be noted in the
records by the supervisory body.
(5) The Ministry shall conclude the use of funding by an overall analysis on the efficiency,
effectiveness and expediency. Within 60 days after its preparation, the analysis – if such claim
was stipulated in the contract on the transfer of assigned amount units - shall be sent to the
persons appointed by the Buyer.
V. Closing provisions
Section 36
(1) This Decree – except for the provisions of subsection (2) of Section 11 and subsection (2)
of Section 13 – shall enter into force on 1 January 2008; it shall also apply to pending cases
and procedures.
(2) Subsection (2) of Section 11 and subsection (2) of Section 13 shall enter into force on the
day when the legal instrument on the verifiers of joint implementation projects realised in the
territory of the Republic of Hungary enters into force.
(3) Project developers who were issued a Letter of Approval before the entry into force of this
Decree shall submit the emission reduction purchase agreement concluded with the Investor
within 2 months after the entry into force of this Decree. If the Project developer fails to
submit it, or the emission reduction purchase agreement concluded after the entry into force of
this Decree does not comply with the requirements prescribed in subsection (2) of Section 12,
the Minister shall withdraw the Letter of Approval.
(4) In 2012 the Project developer shall comply with the reporting obligation defined in
subsection (1) of Section 13 on the implementation and functioning of the joint
implementation project until 15 December 2012. The operator of the national transaction
registry shall transfer the emission reduction units pursuant to subsection (6) of Section 14
until 31 December 2012.
(5) This Decree serves to comply with the following Community legal acts:
a) Articles 1-2 of Directive 2004/101/EC of the European Parliament and of the Council
of 27 October 2004 amending Directive 2003/87/EC establishing a scheme for
greenhouse gas emission allowance trading within the Community, in respect of the
Kyoto Protocol's project mechanisms,
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b) Articles 1-2 and 5 of Commission Decision of 13 November 2006 on avoiding double
counting of greenhouse gas emission reductions under the Community emissions
trading scheme for project activities under the Kyoto Protocol pursuant to Directive
2003/87/EC of the European Parliament and of the Council (2006/780/EC),
c) Article 2, 15 and 19 of Commission Regulation (EC) No 2216/2004 of 21 December
2004 for a standardised and secured system of registries pursuant to Directive
2003/87/EC of the European Parliament and of the Council and Decision No
280/2004/EC of the European Parliament and of the Council.
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Annex 1 to Government Decree 323/2007
The maintenance fee related to the national transaction registry
1. Extent and basis of the maintenance fee defined in subsection (1) of Section 8
Serial
number
Accounts in the national transaction
registry (amount of
Kyoto units/year)
Extent of the
maintenance fee
(HUF/year)
1. Operator holding account and
person holding account
1.1 - 10 000 20 000
1.2 10 001-100 000 61 000
1.3 100 001-1 000 000 142 000
1.4 1 000 001-3 000 000 285 000
1.5 from 3 000 001 610 000
2. Basis of the maintenance fee defined in subsection (1) of Section 8
The basis of maintenance fee is the total amount of emission reduction units and certified
emission reductions transferred to the account in the year before the year of payment.
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Annex 2 to Government Decree 323/2007
Required contents of the Project description
1. General information:
1.1 Subject of the project,
1.2 Place of implementation,
1.3 Information on the Project developer: name, registered office, address, phone number and
electronic address,
1.4 Information on the contact person appointed by the Project developer: name, address,
phone number and electronic address,
1.5 Time schedule of the realisation of the project (including the implementation of the
investment).
2. Technological and financial information:
2.1 Short description of the technology applied,
2.2 Preliminary financing plan for the project.
3. Source(s) of the emissions reduction and the expected extent of it:
3.1 Cause(s) of environmental and financial additionality, preliminary calculations concerning
these requirements, cause of legal additionality and the source(s) of emissions,
3.2 Extent of the expected emissions reduction.
3.3 In case of projects falling under paragraph k) of subsection (7) of Section 10, preliminary
calculations on the emission levels for the whole lifecycle of the project (from
reforestation/afforestation until the processing of wood after cutting).
4. Monitoring concept:
Main elements of the monitoring process.
5. Estimate of environmental impact:
Initial estimate of the environmental impacts of the project, and the procedure to be followed
concerning environmental impact assessment.
6. Planned procedure for stakeholder consultation:
Procedure of the stakeholder consultation in the preparatory phase of the investment, in
particular:
6.1 Rules on the publication of information concerning the project and on providing access to
the project documentation,
6.2 Plans for the public hearing or other measures for the sake of stakeholder information.
7. Summary of the project (for non-experts):
a) description of the project activity;
b) estimate of the environmental impact;
c) preliminary management plan for the prevention and mitigation of negative environmental
impacts.
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Annex 3 to Government Decree 323/2007
Required contents of the Project design document
1. General information:
1.1 Subject of the project,
1.2 Place of implementation,
1.3 Information on the Project developer: name, registered office, address, phone number and
electronic address,
1.4 Information on the contact person appointed by the Project developer: name, address,
phone number and electronic address,
1.5 Time schedule of the realisation of the project (including the implementation of the
investment).
2. Technological and financial information:
2.1 Description of the technology applied,
2.2 Financial plan of the project.
3. Baseline study that contains the following in particular:
3.1 Verification of additionality: detailed calculations that verify that the
development/investment in the framework of the project complies with the requirements of
environmental and financial additionality, and the verification of legal additionality;
In case of projects falling under paragraph k) of subsection (7) of Section 10, detailed
calculations on the emission levels for the whole lifecycle of the project (from
reforestation/afforestation until the processing of wood after cutting);
3.2 Emissions baseline: determination of the emissions baseline, introduction and verification
of the methodology applied; the baseline is the estimate of the emission level without the
implementation of the given joint implementation project, which serves as a basis for
comparison for determining the emissions reduction realised by the project;
3.3 Emissions reduction: the amount of emissions reduction realised by the project (tonne
CO2 eq./year); determination and analysis of the cost-effectiveness of the emissions reduction.
4. Determination Report:
Project design document Determination Report.
5. Monitoring plan:
Plan for the monitoring of the implementation of the project, including information and
reports to be submitted for the Minister.
6. Impact assessment:
Results of the impact assessment, or in case of projects subject to the obligation of preparing
an environmental impact assessment, results of the environmental impact assessment,
including potential changes in emissions beyond the project boundaries that are attributable to
the project; local/regional development impacts and impacts concerning labour force,
employment and other important economic areas. The impact assessment shall include the
other environmental impacts (beyond the project target of producing a net emissions reduction
of greenhouse gas emissions) of the activities realised within the framework of the project.
7. Summary of the stakeholder consultations:
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Summary of the stakeholder consultations held during the preparation of the project, in
particular:
7.1 Information on the publication of information concerning the project and on the access to
project documentation,
7.2 Information on the public hearing held or on the other measures taken in order to inform
stakeholders,
7.3 Summary of the stakeholder comments, identification of the comments accepted and
justification for the refusal of comments.
8. Summary of the project (for non-experts):
a) description of the project activity;
b) introduction of impact areas and impact processes;
c) estimate and evaluation of environmental impacts;
d) description of measures planned or realised for the prevention and mitigation of negative
environmental impacts;
e) potential changes in the health, life quality or lifestyle of people affected by the
environmental impacts;
f) measures to be taken in order to protect the environment and human health.
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Annex 4 to Government Decree 323/2007
Required contents of the annual report on the realisation and operation of an approved
joint implementation project
1. General information:
1.1 Subject of the project,
1.2 Place of implementation,
1.3 Information on the Project developer: name, registered office, address, phone number and
electronic address,
1.4 Information on the contact person appointed by the Project developer: name, address,
phone number and electronic address,
1.5 Reported period.
2. Baseline information
2.1 Baseline determined in the Project design document (in case of any change, detailed
description and explanation of the changes)
3. Project emissions
3.1 Introduction of project boundaries: emission types reckoned in the emissions of the
reported period,
3.2 Emissions of the project and detailed description of the calculations confirming it,
3.3 Leakage: net change in the emissions level of greenhouse gases attributable to the project
beyond the project boundaries.
4. Emissions reduction realised by the project in the reported period
4.1 Amount of net emissions reduction in the reported period (tonne CO2 eq./year)
4.2 Time schedule for implementation for the periods following the reported period
5. Description of the technology applied
5.1 Summary of the built-in equipment/facilities and of technical data
5.2 Detailed description of changes compared to the Project design document
5.3 Technical documentation (results of records of performance measurements)
6. Financial report
6.1 Investment and operational costs in the reported period
6.2 Financial support from state, local government, European Union or other sources used
during the reported period and verification that the project still complies with the requirement
of financial additionality
7. Verification report:
The Joint Implementation Verification Report.
8. Results of the internal audits of the reported period
Description of results.
9. Other environmental impacts
Description of other environmental impacts with reference to the reports thereof to be
submitted to other authorities.
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10. Summary (for non-experts)
10.1 Emissions baseline, project boundaries, applied technology
10.2 Emissions reduction in the reported period
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Annex 5 to Government Decree 323/2007
Required contents of the report by the holder of a person holding account
1. Information on the commercial activity of the account holder
1.1. Amount and price of the purchased emissions reduction units and certified emission
reductions;
1.2. Amount and price of the sold emissions reduction units and certified emission
reductions.
2. Origin of the emissions reduction units and certified emission reductions purchased
by the account holder
2.1. Identification codes of the emissions reduction units and certified emission reductions
purchased by the account holder
2.2. Title and place of implementation of the project generating the emissions reduction units
and certified emission reductions purchased by the account holder.
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Annex 6 to Government Decree 323/2007
Required contents of the application under Section 19 for holding and trading in
emissions reduction units and certified emission reductions originating from project
activities implemented through international co-operation
1.1 Subject of the project, place of implementation,
1.2. Information on the applicant: name, registered office, address, phone number and
electronic address,
1.3. Information on the Project developer in the host country: name, registered office, address,
phone number and electronic address of the organisation,
1.4 Information on the contact person appointed by the applicant: name, address, phone
number and electronic address,
1.5 Time schedule of the realisation of the project (including the implementation of the
investment).
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Annex 7 to Government Decree 323/2007
Conditions for granting training aid
1. The intensity of all aids originating from State resources provided for individual projects
(having the same eligible costs), including de minimis aid, with the exception defined in
paragraph 2, shall not exceed
a) in case of general training:
aa) 70% in case of SMEs,
ab) 50% in case of other enterprises,
b) in case of specific training:
ba) 35% in case of SMEs,
bb) 25% in case of other enterprises.
2. The upper limits specified in paragraph 1
a) shall be increased by 10 percentage points in case of trainings for employees who qualify
as underprivileged from the aspect of training,
b) shall be increased by 5 percentage points for beneficiaries operating in Pest county or
Budapest and by 10 percentage points for beneficiaries operating outside Pest county and
Budapest.
3. If the project contains both general and specific training elements and these elements
cannot be separated for the calculation of training aid intensity, or if the general or specific
nature of the training within the framework of the project cannot be established, the specific
training aid intensities shall be applied.
4. The eligible costs of a training project shall be:
a) trainers’ personnel costs,
b) trainers’ and trainees’ travel expenses,
c) other current expenses such as materials and supplies,
d) depreciation of tools and equipment, to the extent that they are used exclusively for the
training project,
e) cost of guidance and counselling services with regard to the training project,
f) trainees’ personnel costs up to the amount of the total of the other eligible costs referred to
in subparagraphs a)-e). Only the hours during which the trainees actually participate in the
training, after deduction of any productive hours or of their equivalent, may be taken into
account.
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Annex 8 to Government Decree 323/2007
Conditions for granting R+D aid
1. The intensity of any aid granted for R+D projects (having the same eligible costs), with the
exception defined in paragraph 2, shall not exceed:
a) 100% in case of fundamental research,
b) 60% in case of industrial or applied research,
c) 35% in case of experimental development.
2. The upper limits specified in paragraph 1 may be increased to a maximum of 75% aid
intensity in case of industrial or applied research and to a maximum of 50% aid intensity in
case of experimental development according to the following:
a) if the project is implemented outside Budapest and Pest county, maximum aid intensity
may be increased by 10 percentage points, if the project is implemented in Budapest or
Pest county, maximum aid intensity may be increased by 5 percentage points;
b) in case of programmes undertaken under the European Communities Framework
Programme for research and development, aid intensity may be increased by 15
percentage points;
c) the maximum aid intensity may be increased by 10 percentage points if one of the
following conditions is fulfilled::
ca) the project involves effective cross-border cooperation between at least two
independent partners in two Member States, particularly in the context of
coordinating national R+D policies; no SME in the Member State granting the aid
may bear more than 70% of the eligible costs,
cb) the project involves effective cooperation between an SME and a public research
body, particularly in the context of coordinating national R+D policies, where the
public research body bears at least 10% of the eligible project costs and has the
right to publish the results insofar as they stem from the research implemented by
that body,
cc) the results of the project are widely disseminated through technical and scientific
conferences or published in scientific and technical journals.
3. In case of collaborative projects, the maximum amount of aid for each beneficiary shall not
exceed the permitted aid intensity calculated by reference to the eligible costs incurred by the
beneficiary concerned.
4. In case of aid for feasibility studies preparatory to applied or industrial research activities or
experimental development activities, aid intensity shall not exceed 75%.
5. In case of aid for the costs associated with obtaining and validating patents and other
industrial property rights, aid intensity shall not exceed the limits specified in paragraphs 2-3;
in such cases, the aid intensity to be taken into account shall be the aid intensity pertaining to
the research activity that first leads to the subject of the given patent or other industrial
property right.
6. The eligible costs of an R+D project shall be:
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a) personnel costs (researchers, technicians and other supporting staff to the extent they are
employed in the research project) in accordance with Act C of 2000 on accountancy
(hereinafter: Accountancy Act);
b) historical cost of new instruments and equipments – pursuant to the Accountancy Act – to
the extent and duration they are used in the supported R+D project;
c) historical value and costs of technical knowledge and patents purchased or leased from
third parties pursuant to the Accountancy Act if the transaction was carried out under
market conditions; in case of financing by leasing, the leasing fee may only be taken into
account to the extent of the repayment of the capital;
d) direct eligible costs (of material and other expenses) in connection with the R+D activity:
da) cost of an R+D work ordered from a third part under market conditions,
accounted pursuant to the Accountancy Act,
db) cost of consultancy and equivalent services pursuant to the Accountancy Act if
they are used exclusively for the R+D activity,
dc) costs of materials, similar products and services pursuant to the Accountancy
Act, if they are used exclusively for the R+D activity,
e) those costs from among the general costs that can be indirectly assigned to the R+D
project according to the methodology specified in accountancy policies, in the ratio of the
projecting basis used for research and development.
7. In case of aid for a technical feasibility study, the costs of preparing the study shall be
accounted pursuant to the Act on Accountancy.
8. In case of aid for the costs associated with industrial property rights, the eligible costs shall
be the following:
a) all costs incurring before the granting of the right by the first industrial property rights
authority, including the costs in connection with the preparation, submission and
examination of the application and the fees incurring during the procedure for obtaining
the industrial property right before it is granted;
b) translation and other costs that incurred in front of an industrial property rights authority
other than the authority specified in subparagraph a) in connection with obtaining or
validating the industrial property right;
c) costs in connection with proving the conditions for granting or relating to the protection of
the validity of the industrial property right during the procedure for obtaining or protecting
the right even if these costs incurred after the granting of the industrial property right.
9. Pursuant to the Accountancy Act, the costs of consultancy and equivalent services in
connection with ordering studies and analyses shall be direct eligible costs pertaining to the
material and other expenses if these studies and analyses are exclusively used for the R+D
activity.
10. The aid documentation may specify eligible costs in narrower terms than under
paragraphs 6-9.
Courtesy translation – Hungarian version is authentic
33
Annex 9 to Government Decree 323/2007
Conditions for granting regional investment aid
1. Aid intensity for individual projects (having the same eligible costs) shall not exceed the
limits defined in subsection (1) of Section 30 of Government Decree 85/2004. (IV. 19.) Korm.
on procedures related to State aid under subsection (1) of Section 87 of the Treaty
Establishing the European Community and the map for the grant of regional aid.
2. In case of a large investment project, the aid intensity shall be
a) up to EUR 50 million calculated in HUF at present value, 100%;
b) for aid between EUR 50 and 100 million calculated in HUF at present value, 50%;
c) for aid above EUR 100 million calculated in HUF at present value, 34%
of the aid intensity specified in paragraph 1.
3. If the applicant at the time of the submission of the application qualifies as
a) small-sized enterprise, aid intensity – except for the projects in the transport sector and
large investment projects - shall be increased by 20 percentage points compared to the
value specified in paragraph 1,
b) medium-sized enterprise, aid intensity – except for the projects in the transport sector and
large investment projects - shall be increased by 10 percentage points compared to the
value specified in paragraph 1.
4. If an enterprise receives risk capital aid under the Community Guidelines on State Aid to
Promote Risk Capital Investments in Small and Medium-sized Enterprises (HL C 194/2.
2005.08.18.), within 3 years after providing risk capital aid the aid intensity of investment aid
granted to the given enterprise under this Decree shall be decreased by 20%.
5. In case of material or immaterial investment costs or the acquisition of an establishment,
aid shall be calculated based on the costs of acquisition.
6. At the purchase of material assets serving the objective of the investment, eligible costs
shall be the historical costs, pursuant to the Accountancy Act, of
a) the purchase price of the material asset at the acquisition of establishment;
b) patent, other industrial property rights, licence and know-how as immaterial assets, in case
of large undertakings, up to maximum 50% of the eligible costs (hereinafter: supportable
immaterial assets).
7. Except for takeovers, purchase of real estate or support given to SMEs, the assets acquired
in connection with the project shall be new. In case of takeover, purchase of real estate or
assets acquired by SMEs the transaction or the purchase of the asset shall be realised at
market value.
8. Costs related to the acquisition of assets under lease shall only be taken into consideration
if the lease takes the form of financial leasing and contains an obligation to purchase the asset
at the expiry of the term of the lease. For the lease of land and buildings, the lease must
continue for at least five years after the anticipated date of the completion of the investment
project or three years in the case of SMEs.
Courtesy translation – Hungarian version is authentic
34
9. The aid can only be granted if the beneficiary provides a financial contribution of at least
25 % of the eligible costs at the acquisition of material assets.
10. Eligible costs shall be taken into account at the usual market price even if they incurred
between the beneficiary and an affiliate person under a contract in which the purchase price is
different from the usual market price.
11. Immaterial assets shall only be taken into account as eligible costs if
a) they are used exclusively in the establishment receiving the regional aid,
b) they can be regarded as amortizable assets,
c) they are purchased under market conditions from a company in which the beneficiary does
not have any direct or indirect influence as defined in a separate legal instrument,
d) they are included in the assets of the beneficiary and they remain in the establishment
receiving the regional aid for at least five years or three years in the case of SMEs.
12. In case of large undertakings, the ratio of immaterial assets shall not exceed 50 % of the
eligible costs.
13. Only the purchase of a real estate that is indispensable for the implementation of the
project can be taken into account as eligible cost.
14. The following costs shall not be considered as eligible costs:
a) at the acquisition of establishment, the historical cost or purchase price of material assets
for maintenance,
b) historical costs of material assets that have already been used and for which the
beneficiary, another company or a licensed private entrepreneur has already been provided
financial support,
c) historical costs of material assets that were purchased by the beneficiary from a company
under insolvency or dissolution proceedings,
d) costs or expenses incurred before the date of the written confirmation issued by the
organisation responsible for the grant programme,
e) historical costs of passenger vehicles.