The Highlights of Energy Transition in the Principality of Monaco

Press release: Princely Government – Monaco

Three key dates mark Monaco’s determination to reduce its GHG emissions:

  • 1992 – The ratification of the United Nations Framework Convention on Climate Change (UNFCCC).
  • 2006 – The signing of the Kyoto Protocol, as desired by H.S.H. the Prince from the time of His accession.
  • 2015 – The Paris Agreement, for which H.S.H. the Prince set the course with commitments in line with the climate emergency: – 50% by 2030 and carbon neutrality by 2050.

These objectives imply a reduction rate in our GHG emissions that is 4 times faster than that pursued until now, and therefore the involvement of each and every one of us.

The action taken in the last two years includes the creation of the solar survey of the Principality of Monaco (, which makes it possible to identify the solar potential of every roof, the area that can be used for installing solar panels and annual production. This tool offers owners, managing agents and individuals fast access to data that can help them decide whether to install solar panels on the roof of their building. As early as 2014, to encourage this approach to promoting solar energy, the Government introduced a financial incentive in the form of a feed-in tariff for electricity produced, and a 15-year guaranteed subsidy for photovoltaic energy production. The growth potential of this form of renewable energy is significant in Monaco, even if the surface area of solar panels has more than doubled this year, from almost 3,000 m2 to more than 6,000 m2.

As concerns renewable energy, the Government and the Monegasque Gas and Electricity Company (Société Monégasque de Gaz et d’Electricité) (SMEG) have created the “Monaco Energies Renouvelables” (M.E.R.) company and have acquired eight photovoltaic parks in seven Departments in the South of France. M.E.R.’s objective is for Monaco to become one of the first States to have the capacity for 100% green electricity production, equivalent to the amount consumed in its territory.

New energy regulations for buildings have been implemented, given that the energy consumption of buildings represents more than a third of GHG emissions and is therefore a priority issue for the Principality. This text sets out, in particular, for new buildings, maximum energy consumption and a minimum rate for the use of renewable energy, including: the prohibition of fuel oil in 2022 in old buildings; an obligation to carry out energy audits from 2022 for buildings built between 1930 and 1990; and an obligation to carry out thermal insulation work during certain types of building renovation work. These new regulations apply to both existing buildings and new buildings under construction. Covering only new real estate operations would not be mathematically sufficient to achieve the desired greenhouse gas reduction objectives, because the Principality has around 1,480 buildings, which represent more than 3 million m² of usable above-ground surface area, of which almost 61% relates to housing and 11% to offices.

With regard to mobility, the Government introduced incentives for the purchase of electric vehicles in 1994. These were extended in 2004 to include hybrid/electric vehicles, and since 1 January 2019, to electric bicycles. Aid for purchasing electric bicycles amounts to 30% of the price of the vehicle, including taxes, and is capped at EUR 400. Aid for purchasing four-wheeled electric vehicles is EUR 10,000, and EUR 10,000 for plug-in hybrid vehicles emitting less than 21 g/km of CO2. Aid for purchasing four-wheeled electric vehicles amounts to EUR 10,000 for four-wheeled vehicles and EUR 10,000 for plug-in hybrid vehicles that emit less than 21 g/km of CO2. In addition, the Public Car Parks Office provides users of electric vehicles with more than 600 free public charging sockets and offers discounts on its season tickets. Electric vehicles are also exempt from car tax and benefit from free above-ground parking. With approximately 3,000 registrations, environmentally friendly vehicles (electric and hybrid) now represent almost 5.5% of the fleet.

Last July, the new “Monabike” electric bicycle scheme was introduced, with 33 stations and almost 300 bicycles. In its 2 months of operation, the number of trips made is equivalent to the number made during the whole of 2018 under the previous scheme.

Since July 2018, all vessels in Monegasque waters have been required to use refined fuel or be fitted with a smoke treatment system. This ban on heavy fuel oil applies to all vessels anchored in Monegasque waters that sail or are moored in the territorial waters of Monaco (12 nautical miles).