Hungary completed ratification of the Energy Charter Treaty in March 1998. Budapest is divided into 23 districts, which are responsible for many local services. The municipalities are responsible for the provision of most local services, including street-lighting, kindergartens and elementary schools, housing and a wide range of public buildings. Many of Hungary's district heating systems are also owned by municipalities. The counties are responsible for schools other than elementary, universities, hospitals and retirement homes.
Counties also have the task of co-ordinating environmental policy.
Although there is a considerable decentralisation of power in Hungary, local authorities finances are heavily dependent on allocations from central state budget. Two-thirds of the spending power of municipalities comes from central government. The Hungarian Energy Efficiency Business Council was launched in May 1999 in Budapest. It is an NGO whose mission is to promote energy efficiency policies, programmes and technologies that create jobs, foster economic growth and reduce greenhouse gas emissions. One of its first activities will be to produce a directory of energy efficiency businesses in Hungary.