Wednesday, October 5, 2022

HomeInnovationHungary supports SMEs to scale up domestic green economy

Hungary supports SMEs to scale up domestic green economy

The Hungarian government launched a grant of 7.3 billion forints (21.2 million euros) to accelerate the domestic green economy by supporting sustainable investments of Hungarian businesses, announced Minister of Finance Mihály Varga.

“Hungarian businesses can secure up to 400 million forints (1.2 million euros) to finance the acquisition of new equipment, the development of technological systems, infrastructure and real estate investments,” Minister Varga explained.

“In the wake of the coronavirus crisis, it is particularly important to support SMEs, as they create jobs, help to maintain the competitiveness of the Hungarian economy and to sustain its leading position in terms of economic growth in the European Union,” claimed Mr Varga.

He emphasised that the funding will contribute to achieving higher productivity and added value, as well as to the reduction of the environmental impact of industrial activities.

The call was announced under the so-called Economic Development and Innovation Operational Programme (GINOP), that aims to stimulate the economy by accelerating the competitiveness of small and medium-sized enterprises and the use of financial instruments to cover objectives, like increasing renewable energy production and improving the energy efficiency of households and public buildings.

Just at the beginning of summer, the Hungarian parliament passed a new law that confirms climate-neutrality by 2050 as a legally binding obligation. The government underlined several times that the climate targets must be achieved without putting the economic growth of the country in jeopardy.

SMEs provide employment for around two-thirds of the total workforce in Hungary. However, they are greatly exposed to the negative impact of the ongoing epidemic outbreak and the arising liquidity squeeze.

In its Climate and Environmental Protection Action Plan, published at the beginning of this year, the government pledged to strengthen the competitiveness and energy independence of domestic SMEs by providing 32 billion forints (92.8 million euros) for the full or partial replacement of their energy supply with locally available renewables.

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