First steps – the nascent green bond ecosystem in Hungary

Abstract

This study aims to provide a complex overview of the sustainability aspect of green mortgage and corporate bonds issued in the Hungarian market. The assessment is based on the green bond frameworks, the business profile of each issuer, and the publicly available data of the issuances. The study analyses the seven sectors of the green bond market (real estate, construction, mortgage banks, holding companies, manufacturing, agriculture, wholesale and retail trade). It is proven that out of the sustainable development goals (SDG), SDG 7 is the most supported one. Most issuers plan to use metrics related to pollution prevention, energy efficiency, clean transportation, and water- and wastewater management. Moreover, in four of the seven sectors involved, corporate awareness of green issues could be considered high.

Environmental impact of mortgage bond purchases: presentation of a possible estimation methodology

“…In this context, 40 per cent of the final energy consumption in Hungary is related to buildings (MNB, 2022b). In their comprehensive study on the Hungarian green bond market, Becsi et al (2022) also highlight the high share of real estate in emissions and the need for modernisation in Europe and Hungary.…”

A gazdasági, a társadalmi, a pénzügyi és a környezeti fenntarthatósági szempontok megjelenése a Magyar Nemzeti Bank gyakorlatában

“…Öszszességében az MNB magas fokú elvárásaival közvetetten, a végrehajtott vásárlásokkal és a JMM-szabályozásban nyújtott kedvezménnyel pedig közvetlenül tudta támogatni a hazai zöld jelzáloglevél-piac megszületését, illetve ezen keresztül a zöld jelzálog-hitelezési folyamatokat. Egyúttal az is látható, hogy a jelzálogbankok működésében egyre fontosabb elemként jelenik meg a környezeti fenntarthatóság kérdése, a kibocsátott zöld jelzáloglevelek piaci részaránya pedig már meghaladja a teljes európai piacon mérhető hasonló arányszámot (Bécsi et al, 2022). (Lásd 7. ábra)…”

The Appearance of Economic, Social, Financial and Environmental Sustainability Aspects in the Practices of the National Bank of Hungary

“…All in all, the NBH was able to indirectly support the emergence of the domestic green mortgage bond market and, in this way, the green mortgage lending process through its high expectations and indirectly through the purchases made and the relief granted in the MFAR regulation. At the same time, it can be seen that the issue of environmental sustainability is becoming an increasingly important element in the operation of mortgage banks, with the market share of green mortgage bonds issued already exceeding the comparable ratio for the European market as a whole (Bécsi et al, 2022). (See Figure 7)…”