ALM UNDP

Summary:

Background

Located in western Hungary, Lake Balaton is the largest freshwater lake in Europe and one of the shallowest
large lakes in the world. The flora and fauna of the surrounding landscape are particularly diverse due to the
mild climate and a large number of rare and protected plant species can be found in the area. The Lake
Balaton Resort Area (LBRA) has significant agricultural and recreational value. Arable land, vineyards and
orchards take up some 80% of agricultural land (49.1 % of LBRA’s land is agricultural), but the economy of
LBRA is driven predominantly by highly seasonal tourism. Summer tourists, concentrated in lakeside
communities, can temporarily triple the area’s population, exerting substantial stress on the environment and
infrastructure. According to official statistics, tourism related income in the region is about US$1.5 billion/year,
but the actual figure may be up to two to three times higher.

Due to its shallow profile and precarious water quality and water balance situation, Lake Balaton is uniquely
sensitive to both natural and anthropogenic influences. While the ecological parameters of the Lake and its
watershed have long been in constant change, current trends appear to indicate the beginnings of a new
trajectory, characterized by accelerated change increasing the vulnerability of both ecological and socioeconomic
subsystems. Adverse changes in environmental variables in the watershed have already led to
increased costs. Following many years of water quality problems, including eutrophication, a negative water
balance caused water shortages, starting in 2000, which lasted for four years. The exact causes are still
being debated, as multiple forces of change are at play, including climate change. The situation has raised
serious concerns, as there are many other shallow lakes and reservoirs in Hungary and the region facing
similar vulnerability and adaptation problems.

Solution
The project will lead to measurable improvements in vulnerability assessment and adaptation capacity, and
on-the-ground results will be achieved through initiatives financed by a small grants programme using
innovative financing mechanisms, such as public-private partnerships. Long-term impacts will be ensured by
integrating criteria related to adaptation to global change into the regular grant-making activities of the LBDC,
which receives funding from the national government budget. The project aims to engage stakeholders in:

* developing lake- and watershed-specific information systems which interface with national
information systems to help identify, understand, and track issues critical for vulnerability and
sustainable development;
* identifying and analyzing adaptive strategies and policy initiatives;
* formulating and implementing pilot adaptation initiatives to capture global environmental benefits,
and increase social and ecosystem resilience;
* synthesizing lessons learned and sharing them with relevant local, national, and international
audiences; and
* short and long cycle project monitoring and evaluation.