Today’s ESG Updates
- Hungary Faces EU Fund Deadline: Hungary risks losing €10bn in EU recovery funds unless it meets 27 reform milestones tied to governance and rule of law.
- New South Wales Reopens Gas Exploration: NSW restarts gas exploration after a decade, cutting fees and triggering environmental concerns.
- Australia Rules Out Gas Export Tax: Australia will not add new taxes on existing gas export contracts in its upcoming budget, citing energy security.
- Italy Considers Fuel Tax Cuts Extension: Italy may extend fuel tax relief to help with energy costs while seeking more EU budget flexibility.
Hungary faces deadline to secure frozen EU recovery funds
Péter Magyar is meeting Ursula von der Leyen to discuss unblocking Hungary’s frozen EU funds before he is inaugurated in early May. Budapest risks permanently losing €10 billion at the end of August if it fails to meet required milestones and reforms. The money is part of Hungary’s EU Covid recovery allocation, previously frozen due to concerns regarding corruption, judicial independence, and democratic standards.
Unlocking the recovery money requires complying with 27 EU-mandated “super milestones,” covering procurement, judicial independence, and academic freedom. Magyar holds more than two-thirds of the seats in parliament, which is expected to allow for the quick approval of necessary legislative changes. The new government is also seeking relief from daily migration dispute fines, approval for billions in SAFE program loans, and a return to the Erasmus program for Hungarian universities.
The European Commission is cautious about this situation following a 2024 experience with Poland, where pledged reforms stalled after funds were released.
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Further reading: Hungary’s Magyar meets von der Leyen to game-plan unlocking frozen EU funds
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New South Wales reopens gas exploration amid energy and environmental debate
New South Wales has opened new areas for gas exploration for the first time in a decade to revive the domestic industry and support energy grid stability. Application fees for exploration have been slashed from A$50,000 ($35,815) to A$1,000. Two frontier locations in the state’s west are being opened, with a 2021 preliminary study suggesting there could be four specific sites.
Minister for Natural Resources Courtney Houssos stated that gas remains important for heating, manufacturing, and electricity despite data showing gas for power generation is at a two-decade low.
Environmental and farming groups criticized the plan, with NSW Farmers President Xavier Martin raising concerns about “1,000 cowboys” impacting biosecurity and water risks.
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Further reading: Australian state offers first gas exploration permits in a decade
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Albanese rules out new gas export tax in upcoming federal budget
Australian Prime Minister Anthony Albanese has confirmed that the upcoming federal budget, to be handed down on May 12, will not include a new tax on existing gas export contracts. The government was not influenced by the pressure to introduce a 25% tax on gas exports due to concerns about alienating major Asian trading partners, such as Japan, Singapore, and Malaysia.
In 2023-24, the commonwealth obtained $1.48bn in PRRT (Petroleum Resource Rent Tax), which is just a small fraction of export revenue because the 40% tax applies after capital costs are deducted. Albanese linked gas exports directly to Australia’s fuel security, saying gas investment is vital to maintaining domestic gas reserves, particularly in Western Australia.
Current contracts are protected, but the Prime Minister did not rule out future changes, such as a windfall tax or further PRRT adjustments.
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Further reading: Anthony Albanese rules out gas export tax on existing contracts and criticises ‘populist’ campaign
Italy considers extending fuel tax cuts amid energy costs
Prime Minister Giorgia Meloni stated that Italy is considering extending the cut in fuel excise duties beyond May 1 to help households and businesses manage high energy costs. The government has already spent around 700 million euros to cut excise duties on petrol and diesel for just over 40 days. Italy has set aside almost 1 billion euros ($1.17 billion) to extend and reinforce tax breaks designed to encourage employers to hire staff.
Meloni is calling for the European Commission to allow budget leeway for energy costs, which is specifically envisioned for defense and security spending. Under the National Escape Clause, the EU allows deficit increases for defense spending that must not exceed 1.5% of national output per year between 2025 and 2028. Italy planned to increase its defense spending by 0.15% of GDP this year and next, and by 0.2% in 2028. A 0.15% increase in defense spending is worth around 3.7 billion euros.
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Further reading: Italy may extend excise duty cut on fuels, seeks more lenient EU budget rules
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the Cover Photo: Péter Magyar, the next Prime Minister of Hungary. Cover Photo Credit: © European Union, 1998 – 2026
