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Hungary has increased its climate ambitions by legislating a carbon neutrality goal for 2050 and adopting a long-term vision with the National Clean Development Strategy, which guides energy policy decision making. Hungary has a strong starting point with considerable low carbon generation, and the government has an ambitious target of 90% clean electricity by 2030. Alongside nuclear energy, a diverse renewable energy portfolio and greater power system flexibility for the integration of high shares of solar PV are critical. The country needs to lower fossil fuel consumption, increase energy efficiency and promote investments in clean energy technologies and human resources to deliver a just and inclusive transition. In this report, the IEA provides energy policy recommendations to help Hungary effectively manage the transformation of its energy sector in line with its goals.