In order to advance the regeneration of brownfield areas, a reform package on the amendment to the Act on the Formation and Protection of the Built Environment was introduced on 4 June 2019.
According to the amendment, brownfield area is a parcel of land or sum of parcels of lands, not including the agricultural and forestry areas, that were abandoned following their primary use for industrial, commercial, transport or defence purposes, they are typically under-utilised, degraded and usually loaded with environmental pollution, although they could be regenerated to a value-added and developed area by environmental and technical development.
The amendment stipulates furthermore that if there is a brownfield area in the administrative territory of a municipality, such municipality must define the brownfield area and its regeneration concept, as well as the possibilities for its development.
By defining the brownfield areas, the Hungarian Government is reacting to the social and economic problems linked to these territories. Developments in brownfield areas could help to decrease urban sprawl and a more sustainable and compact urban structure could be created with efficient and sustainable usage of resources.
By Gabriella Galik, Partner, KCG Partners Law Firm