Environment

EIB halts loan for Budapest Airport expansion over breach of EU environmental law

EIB halts loan for Budapest Airport expansion over breach of EU environmental law

Photo: Budapest Airport

Published

January 11, 2022

Country

Comments

comments icon

0

Share

Published:

January 11, 2022

Country:

Comments:

comments icon

0

Share

The European Investment Bank (EIB) has halted the payment of a EUR 200 million loan to expand the Budapest Airport in Hungary because the authorities haven’t analyzed how the investment could contribute to air pollution, noise pollution, and greenhouse gas emissions. According to CEE Bankwatch Network, the case represents a violation of EIB’s policy and EU environmental law.

The EIB granted Budapest Airport EUR 200 million in December 2018 for the new investments needed to secure conditions for a 50 percent increase in passenger traffic within the next eight years. A guarantee also backed the loan from the European Union budget under the European Fund for Strategic Investments, Bankwatch noted.

However, two Hungarian civil society groups: the National Society of Conservationists – Friends of the Earth Hungary (MTVSZ) and the Association for Civilized Air Transport, with the support of Bankwatch, submitted complaints. It triggered the investigation by the EIB’s Complaint Mechanism.

The investigation by the EIB’s Complaint Mechanism was triggered by complaints from NGOs

The investigation report, published in late 2021, has revealed that no environmental impact assessment has been done for the project and found that the residents have been deprived of their right to be consulted on the plans to expand the airport and on measures to mitigate the impacts, Bankwatch said.

Civil society groups now urge the Hungarian authorities to ensure that noise levels from the airport are in line with EU and World Health Organization standards and support the most affected residents, including offering to buy out homes in the loudest areas and subsidizing full insulation in houses further afield.

The disbursement of the loan has been discontinued at least until the EIB receives the decision of the Hungarian authorities on whether a full environmental impact assessment is required for the expansion of the airport. Bankwatch stressed a proper evaluation should account for the cumulative impacts of the different project components.

The EIB’s due diligence for the project lacked basic necessary documentation

The report also confirmed allegations raised by the civil society groups regarding failures within the EIB in screening the project’s compliance with the bank’s policies and informing the public about the project and its implications.

The EIB’s due diligence for the project lacked necessary documentation and therefore had no grounds to conclude it complies with the bank’s standards, Bankwatch said.

The environmental impacts and the climate footprint of larger airports must be adequately assessed.

Teodóra Dönsz-Kovács, a campaigner with the MTVSZ, said the Hungarian government and the airport operator should take joint responsibility for addressing the impacts of the current operation of the airport regardless of whether the government buys the airport, as it intends, or not.

According to Zoltán Frik, President of the Association For Civilized Air Transport, the report gives new hope and impetus to the residents to continue their struggle. He added that the environmental impacts and the climate footprint of larger airports must be properly assessed.

Anna Roggenbuck, Policy Officer with CEE Bankwatch Network, announced that the EIB is currently revising its environmental and social policies and adopting a new policy within weeks.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

Three cities reviving protests against Rio Tinto lithium project Jadar in Serbia

Three cities reviving protests against Rio Tinto’s lithium project in Serbia

20 July 2025 - Opponents of Rio Tinto's plan to mine and process a lithium and boron ore called jadarite in western Serbia held a protest in Loznica

bih epbih waste incineration tpp tuzla trial

BiH’s power utility EPBiH cancels waste co-incineration trial in Tuzla coal plant

18 July 2025 - Power utility Elektroprivreda Bosne i Hercegovine aborted a waste co-incineration test at its Tuzla coal power plant

Belgrade in focus challenges and solutions for sustainable urban development Ivan Gazdic cms

Belgrade in focus: challenges and solutions for sustainable urban development

17 July 2025 - The author of the feature is Ivan Gazdić, Attorney at Law and Partner at Petrikić & Partneri AOD in cooperation with CMS Reich-Rohrwig Hainz

Successful completion of the WISE serbia mentorship program trust, support, and personal transformation

WISE Serbia mentorship program successfully completed: trust, support, and personal growth

24 June 2025 - The first mentorship program of the WISE Serbia women’s network in sustainable energy, the green economy, and climate action was successfully concluded with an event held in Belgrade