Hungary has significant freshwater resources, supported by major river systems such as the Danube and the Tisza in addition to groundwater reserves. However, the country is highly dependent on water inflows from abroad: 96% of its freshwater resources originate outside its borders, giving Hungary the fourth-lowest level of internal freshwater resources per capita among European Union (EU) countries. The country is also facing growing pressures on water resource quantity, including high per-capita abstraction levels (increasing by 1% on average per year since 2014), illegal groundwater use, and rapid water drainage through a 100 000-kilometre network of canals, channels and ditches that limits natural water retention. Moreover, in 2022, 22.9% of water in the public supply network was lost due to leakage. Historically, Hungary has primarily focused on managing floods and excess inland water, considering that one-quarter of its territory lies on floodplains. Nevertheless, climate change is reshaping the risk landscape: droughts have occurred in 23 of the last 30 years, and climate-related economic losses in Hungary totalled EUR 6.5 billion between 2000 and 2023. More than one-third (39%) of such losses were incurred in 2022 alone, when a historic drought caused the second-highest per capita loss in the EU27 at EUR 253 per inhabitant.
To navigate these challenges, Hungary governs its water resources through a multi-level system involving national, sub-basin and municipal authorities across the Danube and Tisza River Basins and transboundary waterbodies. Under the leadership of the Ministry of Energy, assisted by the General Directorate for Water, eight national ministries are involved in water policymaking and implementation. They are supported by an Inter-Ministerial Committee on Water Management, a Drought Protection Operational Task Force and the Hungarian Energy and Public Utility Regulatory Authority. Transboundary co-operation on water is pursued through the International Commission for the Protection of the Danube River and Transboundary Water Committees shared with seven neighbouring countries. At sub-national level, 12 Territorial Water Management Directorates and 12 County Government Offices carry out operational and permitting tasks, while Water Management Councils serve as consultative and advisory platforms for water management at sub-basin and sub-catchment levels. Municipalities oversee water supply and sanitation services delivered by 34 state or municipally owned operators.
Hungary’s water and climate policy framework has evolved considerably over the past 30 years, building on the 1995 Water Management and Environmental Protection Acts, and later shaped by EU water-related directives and international climate objectives. Since the 2010s, new laws have strengthened disaster management, consolidated water utility services, reinforced the framework for irrigation, embedded climate mitigation and adaptation in law, and added water conservation and water shortage management to state responsibilities set out in the 1995 Water Management Act. Strategic documents, including the National Water Strategy, River Basin Management Plans and the National Climate Adaptation Strategy, provide overarching guidance for water and climate action in line with EU commitments.
A wide range of economic instruments, financial mechanisms and information systems support water resources management. Hungary’s three-pronged water pricing policy consists of a water abstraction charge, an agricultural water service fee, and tariffs for residential and non-residential public water supply users. Its water-related expenditure remains below the EU27 average and is highly dependent on revenues from water tariffs and EU funding.
Despite these advances, water governance in Hungary remains highly fragmented and lacks co-ordination, which weakens policy coherence, implementation and accountability. Repeated ministerial reorganisations and shifting responsibilities have eroded the technical capacities of national and subnational government entities involved in water management. Moreover, unclear rules on water retention, water scarcity and the ownership of tertiary infrastructure create operational and maintenance challenges. Low water and wastewater tariffs prevent full cost recovery, discourage efficient water use and leave utilities struggling to fund essential maintenance and investment. The effectiveness of economic instruments such as the water abstraction charge is hindered by low rates and exemptions from payment during periods of water scarcity. Enforcement is also challenging as authorities lack resources to monitor and control illegal water abstraction. These issues are compounded by data gaps, limited alignment across sectoral policies in energy, industry, agriculture, forestry and land use, and uneven stakeholder engagement.
Key recommendations
Strengthening water governance in Hungary is essential to further support and achieve long-term water resilience in the context of climate change. In line with the OECD Principles on Water Governance, this report suggests tailored policy recommendations around five key areas.
1. Consolidate institutional foundations for climate-resilient water governance. Water governance systems should be designed for the challenges they are meant to address. This means that “functions” (e.g. the role of water in driving climate adaptation) should guide “forms” of governance (e.g. decision-making structures such as ministries). Consolidating institutional foundations would involve limiting the disruptive impacts of frequent changes to the institutional framework; strengthening inter-governmental co-operation on water and climate adaptation by ensuring that additional ministries (e.g. the Ministries of Interior, Foreign Affairs, Finance, and Construction and Transport) join the Inter-Ministerial Committee on Water Management; and strengthening the capacities of key water-related government bodies for climate resilience.
2. Leverage economic and regulatory instruments to manage water demand. This would entail adjusting water abstraction charges at levels that enable cost recovery and water demand management, in line with the EU Water Framework Directive, and reviewing and reforming potentially harmful subsidies, while exploring the taxation of negative environmental externalities (e.g. a stormwater fee). It is also suggested that Hungary review water permitting thresholds and requirements to enhance data collection on water use and better manage demand as a result; adopt a resource-based approach to water permitting that explicitly incorporates water scarcity considerations; and strengthen compliance with water regulation through adequate inspections, enforcement and sanctions.
3. Adopt a long-term vision for water security. Defining a long-term vision for water resilience under a changing climate, in the form of a strategy or plan, is crucial to set clear objectives for water and climate adaptation in Hungary. Such a strategy should tie together existing plans and programmes related to water and support the integration of water security considerations into agriculture, industry, energy, and land use policies among others. It could serve as an entry point to align policy, planning, operational objectives and actions across levels of government. In parallel, Hungary could enhance the quality, coverage, harmonisation and granularity of water-related data to support a strategic vision and evidence-based decision-making for water, and ensure that robust data and information systematically inform policy development and implementation across sectors and levels of government.
4. Strengthen multi-level governance for a place-based approach to water policy that combines decentralised governance with national oversight and reflects regional differences in water availability and climate risks. Hungary could notably strengthen the capacity of Territorial Water Management Directorates and Water Authorities to enable place-based implementation of national water objectives, while supporting municipalities in adapting water management practices to climate change through targeted and conditional financial support, capacity building, knowledge sharing and peer learning. Clarifying the mandates and expanding the resources of subnational Water Management Councils would also help them serve as effective platforms for stakeholder engagement and potentially water policy oversight at sub-basin level. The next cycle of River Basin Management Plans (2027-2032) could embed more place-based water retention and drainage measures.
5. Enhance transparency, engagement and monitoring for integrity and trust. Hungary should consider strengthening transparency and public access to information on water, climate and environmental policy to build public trust, improve accountability and support evidence-based decision-making. This could involve, for example, establishing a one-stop shop for water, climate, and environmental information, and ensuring the systematic publication of key advisory outputs made by independent or government bodies. Engaging stakeholders across society, particularly during earlier stages of the policy cycle, could also become a standard practice to inform decisions and improve public acceptance of water and climate policies. For example, new legislative proposals could be screened for alignment with climate adaptation objectives by an independent panel of experts.