Low water prices hinder industrial recycling investments in Hungary

Low industrial water prices in Hungary are hindering investments in water recycling and conservation technologies. According to András Torma, an associate professor at Széchenyi István University, while companies increasingly recognize water as a critical strategic asset and a potential risk to business continuity, the financial return on complex water-management projects is too slow to justify the cost.

Currently, the regulated price for industrial water consumption, including the water resource levy, is 637 HUF per cubic meter. This low unit cost creates a paradox where the necessity of water security is acknowledged, but economic decision-makers hesitate to approve large-scale sustainability upgrades.

The challenge is compounded by shifts in the industrial landscape, with the rise of water-intensive sectors such as battery manufacturing, vehicle production, and data centers. Additionally, climate change is increasing water demand due to rising temperatures and higher cooling requirements, even as droughts reduce river levels.