Hungary’s green bond wins CBI award

Climate Bonds Initiative, a non-profit organisation appraising sustainable financial solutions, has awarded Hungary for its green bond, first issued last year, the finance ministry said on Wednesday.

At the virtual award ceremony, Hungary was recognised as a sovereign green market pioneer, the statement said.

The award shows an appreciation for Hungary’s efforts to curb climate change,

the statement said.

The bonds were issued in euros in June 2020 for a 15-year term, to be used exclusively for green investment, the ministry cited state secretary Gábor Gion, the head of the steering committee supervising the Hungarian Green Bond Programme, as saying.

The programme is a “watershed” measure in the fight against climate change and the loss of biodiversity, Gion said.

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As we reported before, a recently published climate research examined the expected impact of climate change in the Carpathian Basin, including various Hungarian cities. In terms of climate indices, the research focused primarily on the increasing number of so-called tropical nights, referring to those nights when the lowest temperature is above 20°C. The study examined both an optimistic and a pessimistic scenario.

According to the research results,

the number of tropical nights will increase significantly in several Hungarian cities until the end of the century.

As we previously reported, the temperature rose to a record high in Budapest this February. Therefore, it is not surprising that the Hungarian capital is also involved in the increasing number of tropical nights. In the city centre, an average of 13 tropical nights per year was measured between 1981 and 2010, while in the rural outskirts of Budapest, it was only 3. In the period 2021-2050, their number is expected to increase to 20-22 in the city centre, while in the suburbs it might be around 8. The discrepancy can be explained by the fact that in the most densely built-up parts of Budapest, surface temperatures of up to 5°C are higher during the day than in the suburban areas.

As the Hungarian news portal Portfolio reported, by the end of the century,

the number of tropical nights per year in Budapest might increase to 54, while in the optimistic version, “only” 29 such nights are likely.

The situation can be even more difficult in the most densely populated areas of the capital, where the annual number of tropical nights can exceed 60. Significant growth is also expected in the areas around the city, with 12-31 tropical nights.

Source: MTI