Test modal

Extensive legislative processes have begun in most States to implement a sustainable construction economy at the Member State level. These are embodied in the adoption of primary central-level normative and other non-binding legal acts - mainly strategies, plans and recommendations. Central regulators are supplemented by a system of local level regulators in accordance with local characteristics. In addition, many settlement-level regulators formulate local-level sustainability rules among settlement development regulators, especially in line with the concept of sustainable settlement planning1 and the smart city.2 The OECD also stated in its report (referenced earlier)3 that the regulators of the countries examined primarily focus on energy-related measures and pay less attention to the examination of the entire life cycle from the point of view of sustainable buildings. Most of the responding countries have introduced mandatory energy efficiency codes, primarily for insulation and preferring the green retrofit method. In addition, for new buildings, most new regulators have already begun to accept near-zero standards as the new norm. E.g. in Japan, by 2050, all buildings aim for net zero energy efficiency. To this end, standards are set for each type of building (e.g. for non-residential buildings) and in July 2022 the country revised its law on the energy conservation of buildings in order to meet the energy efficiency standards of buildings by 2025.

 

In addition, quite a few countries have also introduced green building regulations corresponding to local specificities: for example, in order to combat the urban heat island effect, Tokyo has required newly built, renovated or expanded private facilities above the size of the legally defined area to provide green cover.7 The recently updated California 2022 Building Energy Efficiency Standards encourage the use of efficient electric heat pumps.8

 

The already referenced Transition Pathway for Construction9 presents a number of forward-looking national measures or plans that support the green transition of the construction industry, such as highlighting:

 

In the recent period, a significant legislative process has begun in order to ensure the sustainability of buildings. A number of strategies and legislation have been adopted. We would like to present the newest and most significant of these in this chapter.

 

The issuance of central regulations regarding certain areas of construction appears under the jurisdiction of several ministries. Currently, the Minister of Construction and Transport is responsible for construction regulation, settlement development and settlement planning, and the protection of settlement image. At the same time, the minister in charge of the Prime Minister’s Office is responsible for the enforcement of sustainability aspects in relation to individual commercial buildings, as well as for matters related to rust zone action areas.11 The various building supervision and construction licensing powers are divided between several authorities, and the process of building authority procedures is quite complex, requiring the cooperation of several specialised administrations and other administrative bodies.

 

The central legal regulator of Hungarian construction law is Act C of 2023 on Hungarian architecture, which entered into force on October 1, 2024, with a few exceptions. The new law covers several sustainable construction issues, among others

The law authorises the issuance of nearly a hundred lower-level laws in order to define further detailed rules.

 

In Hungary, from January 1, 2021, Act LVII of 2015 on energy efficiency introduced the energy efficiency obligation system, an obligation based on energy efficiency improvement investments operating on a market basis, and new alternative energy efficiency policy measures were also recorded, the planning and continuous monitoring of which is only possible on the basis of modern indicators in order to continuously achieve the EU targets. The certification of the energetic characteristics of buildings is determined by government decree 176/2008 (VI. 30.). Based on the decree, the certificate must be issued for the building as a whole.

 

Finally, it is also worth mentioning the Hungarian ESG Act that entered into force in the summer of 2024.14 According to the new law, the register of the ESG report published by the company must be public, its content can be read and viewed by anyone without restriction. Based on the principle of double materiality, businesses disclose appropriate information about their sustainability risks and opportunities, as well as their impact on people and the environment. In addition, the law stipulates, among other things, that the company must take long-term sustainability opportunities into account in order to enforce the principle of environmental sustainability during its business activities, and ensures that they are implemented in its business strategy. In addition, in accordance with the principle of social responsibility, the company examines and manages the social and environmental effects of its operations during its business activities and takes a role in promoting the values laid down in the Fundamental Law, especially family-friendly operations. The law also lays down the detailed rules for how the company can prevent or minimise social responsibility or environmental risks in its supply chains in accordance with the social responsibility and environmental due diligence requirements or eliminate violations of social responsibility or environmental protection obligations. According to the law, the company fulfils its obligations by preparing an annual ESG report on the fulfilment of its due diligence obligations for the purpose of sustainability for the previous business year, which must be audited by an ESG certifier.