New environmental fines: companies will now have to dig deeper into their pockets

Companies operating without an environmental and unified environmental use permit or operating in a manner inconsistent with it can be fined up to HUF 2 billion. Companies will also face stricter penalties for violating noise and air protection regulations. In the event of a violation of waste management regulations, the fine can increase to HUF 500 million, and on-site fines can also be very expensive.

In order to protect water quality, the amount of the fine will be doubled for companies that discharge wastewater into sewer systems. Higher sanctions can also be expected in the case of waste management violations, and the authority will not reduce the penalties, so companies must pay the full amount.

The data of companies affected by serious environmental violations – in the case of a fine exceeding HUF 50 million – are published in the Register of Administrative Sanctions and on the website of the Ministry of Energy, and the operation of the company is suspended for the duration of the violation.

“Responsible and law-abiding operations require continuous attention from corporate management, and well-established, third-party certified environmental management systems can provide a framework for this. Failed or incomplete environmental protection measures not only pose a risk of financial sanctions – fines of up to billions – but can also result in serious indirect damage, such as reputational damage. Negative consequences can be prevented by establishing an effective environmental management system or by reviewing compliance with environmental legislation,”

emphasizes Attila Jenei, EY Climate Change and Sustainability Partner.