Green Real Estate in Monaco: 2025 Standards and Incentives

Published on October 2, 2025 and written by Cyril Jarnias

Monaco, Pioneer of Green Real Estate in 2025

In a context where sustainability is becoming a global priority, Monaco, often associated with luxury and sophistication, aims to be a pioneer in green real estate innovation.

In 2025, the principality, concerned about its ecological footprint, is strengthening its rigorous environmental standards, encouraging real estate developers to adopt more eco-friendly practices.

This movement toward greener architecture is not only beneficial for the environment but also promises to redefine Monaco’s urban landscape while increasing property values and resident well-being.

Introduction to Green Real Estate in Monaco

Green real estate refers to a set of practices aimed at designing, constructing, renovating, and operating buildings while minimizing their environmental impact. The main objectives are reducing carbon footprint, optimizing energy efficiency, preserving natural resources, and ensuring occupant well-being. This involves rigorous material selection (bio-based, recyclable), improved insulation, use of renewable energy (solar panels, heat pumps), and smart water management.

The fundamental aspects of green real estate include:

• Significant reduction in energy consumption
• Limited use of fossil fuels
• Reduced greenhouse gas emissions throughout the building’s lifecycle (construction, operation, renovation)
• Increased property value through environmental performance
• Improved comfort and indoor quality for users

In the specific context of Monaco:

Monaco has demonstrated a strong commitment to sustainable development for several years. The Principality has adopted various ambitious ecological policies to align its urban planning with more environmentally respectful approaches.

Several reasons make green real estate particularly relevant for Monaco:

• Very limited territory: restricted land area requiring optimization of every built square meter.
• High urban density: urgent need to improve energy performance without expansion possibilities.
• High energy dependency: essential reduction in consumption through efficient or self-sufficient buildings.
• Increased sensitivity to living environment and international prestige: strong expectations for sustainable architectural innovation.

The Principality has thus implemented various recent standards oriented toward sustainable real estate development:

Standard/Policy	Main Objectives
Enhanced thermal regulations	Reduce energy needs during construction/renovation
HQE/LEED/BREEAM Certification	Guarantee high environmental quality
Material requirements	Promote local/bio-based/recycled materials
Tax incentives	Encourage green investments

These measures are accompanied by economic incentives such as subsidies or tax benefits for developers committed to this transition.

The expected benefits for Monaco are multiple:

Economic Advantages

• Structural reduction in energy costs for occupants/investors
• Higher property valuation in light of future regulatory requirements
• Enhanced appeal to international clients sensitive to these issues

Environmental Benefits

• Direct contribution to Monaco’s targeted carbon neutrality
• Optimal preservation of existing urban and natural territory
• Tangible improvement in urban comfort despite high density

The widespread adoption of “green” practices thus positions Monaco as an innovative model where economic performance aligns with environmental excellence

Ecological Standards for Construction in Monaco

Environmental regulations for construction in Monaco are based on a strict framework inspired by the most demanding international standards. The main requirements include:

• Energy Efficiency: High-performance thermal insulation to reduce heating and cooling needs, limitation of energy loss through excellent air tightness, and mandatory use of energy-efficient lighting systems.
• Natural Resource Management: Sanitary equipment must limit water consumption. Integration of renewable energy (photovoltaic solar, geothermal) is strongly encouraged, and sometimes mandatory depending on building type.
• Waste Reduction: The source correction principle requires sector players to prioritize prevention and direct treatment of environmental impacts during each project phase.

Requirement	Objective	Practical Application
Thermal insulation	Reduce energy consumption	High-performance insulating materials
Air tightness	Limit energy losses	Mandatory on-site testing
Efficient equipment	Reduce water & energy usage	Specific faucetry, LED lighting
Renewable energy	Decarbonize electricity production	Solar panels/geothermal wells

The Monegasque Environmental Code also establishes several fundamental principles:

• Right to a healthy environment
• Prevention and precaution principle
• Source correction
• Polluter-pays principle
• Integration of sustainable development in all public policies

Recent Government Initiatives:

The government has strengthened its standards through:

• Financial incentives to promote energy renovation and sustainable construction,
• Systematic encouragement of international environmental certifications (LEED, BREEAM or HQE),
• Active support for technological innovations, particularly in using bio-based or recycled materials.

Iconic Examples:

Maritime Extension “Mareterra”: This new eco-district perfectly illustrates these requirements. It integrates a marine ecological belt to preserve existing underwater biodiversity; its construction site minimizes noise pollution with a dedicated sound barrier; it extensively uses renewable energy, sustainable materials, and anti-waste devices.

Real Estate Renovation: Several recent buildings have obtained HQE or BREEAM certification through extensive use of rooftop solar thermal systems and systematic recycling of construction waste.

International/Regional Collaborations:

Monaco is actively involved in various collaborations:

• Participation in Mediterranean networks for sharing best practices in sustainable urban planning.
• Cooperation with the European Union through specific agreements even though Monaco is not a direct member.
• Technical partnerships with international institutes specialized in energy efficiency or responsible urban construction management.

Summary list:

• Standards inspired by LEED/BREEAM/HQE applied locally
• Financial incentives & national technological support
• Pilot projects demonstrating effective carbon footprint reduction

These combined efforts position Monaco as a regional model for ecological requirements applied to the real estate sector

Subsidies for Renewable Energy

Monaco aims to become a model of energy transition, with ambitious goals such as reducing greenhouse gas emissions by 55% by 2030 (compared to 1990) and achieving carbon neutrality by 2050. The real estate sector is at the heart of this strategy, representing approximately 35% of the country’s total emissions.

Types of subsidies available for renewable energy integration:

• Direct subsidies for individuals and condominiums
  – Coverage of up to 20% of work costs, capped at €2,000 for housing, aimed at installing equipment promoting renewable energy or energy renovation.
• National Green Fund
  – Endowed with approximately €25 million, it finances the national action plan, with a significant portion dedicated to buildings (efficient heating, air conditioning, solar panels).

Subsidy Type	Maximum Amount	Target Audience	Main Objective
Work subsidy	€2,000	Owners/tenants	Renewable energy installation/renovation
Green Fund	Variable by project	Condominiums/Businesses	Renovation & energy innovation

Objectives and legal ecological standards:

• Progressive requirement for all new public and private buildings to achieve high energy performance levels.
• Regulatory encouragement to integrate solutions such as photovoltaic or thermal solar in new constructions or major renovations.
• Strict compliance with the Monegasque environmental framework in all new real estate projects.

Key Government Initiatives:

• Creation in partnership with SMEG (Monégasque Electricity and Gas Company) of Monaco Energies Renouvelables (M.E.R.), a company investing in solar, wind, and hydroelectric development—both domestically and abroad—so Monaco virtually has equivalent green energy to cover its national consumption.
• Regular acquisition by M.E.R. since 2017 of *photovoltaic power plants* totaling over 128 MWp, representing nearly one-third of annual national electricity needs covered by own production.

Main Eligibility Criteria:

• Be a legally declared owner or tenant in Monaco
• Building located in Monaco
• Work compliant with technical specifications set by the Energy Transition Mission
• Complete application filed before actual construction start

Standard Procedure:

1. Prior submission of application to competent service (Energy Transition Mission)
2. Technical analysis according to defined energy criteria
3. Written notification if accepted; payment after post-work inspection

Concrete Examples:

> Several older residential buildings recently benefited from the Green Fund to install enhanced thermal insulation combined with rooftop solar panels; this resulted in measured reductions of up to 30% in their annual energy bills and significant local CO₂ reduction.

> Thanks to M.E.R. investments, Monaco already covers nearly 34% of its annual electricity consumption through its own green power plants distributed across several French regions.

The implemented measures demonstrate not only real impact on national carbon footprint but also position Monaco as an exemplary European laboratory in the real estate transition toward clean energy.

BREEAM Certification and Its Application in Monaco

BREEAM certification (Building Research Establishment Environmental Assessment Method) is a pioneering international framework for assessing building environmental performance. Created in 1990 by BRE in the UK, it draws on over thirty years of scientific expertise and has established itself as a global reference for promoting sustainability in the real estate sector.

The fundamental principles of BREEAM are based on:

• Integration of environmental, social, and economic criteria at each stage of the building lifecycle.
• A flexible approach adaptable to different types of real estate assets, new or existing.
• Assessment of multiple themes: sustainable resource management, energy efficiency, indoor health quality, waste management, soft mobility, and climate change adaptation.
• A system based on continuous improvement: performances are measured across several levels (Pass to Outstanding).

The growing importance placed on sustainable construction, driven by ESG (Environmental, Social, and Governance) commitments, now makes the BREEAM label a differentiating criterion for institutional investors and real estate developers.

Year	Key BREEAM Event
1990	First “Offices” certification launched
2000s	Extension to collective housing & renovations
Since 2015	Enhanced international application; local adaptation

In Monaco, the recent adoption of the BREEAM label fits within an ambitious policy aimed at reducing the national carbon footprint. The Princely Government actively encourages this approach through:

• Direct financial aid for certified projects,
• Subsidies linked to environmental audits,
• Technical support during preliminary phases with the Urban Planning Department,
• Increased land value for properties meeting international standards.

Locally concerned buildings mainly include:

• New office buildings
• High-end residences
• Major renovations of historic hotels
• Mixed projects integrating commerce & housing

Concrete examples in Monaco that have obtained certification:

“Tour Odéon” – iconic residential building integrating optimized energy resource management from its design
“Mareterra” – eco-designed district on maritime extension achieving Excellent level thanks to circular economy innovations
SBM Offshore Headquarters – labeled offices promoting user well-being while drastically reducing energy consumption

The economic advantages observed include:

• Significant reduction in operational costs (energy/water)
• Higher property valuation during resales or rentals
• Increased attractiveness to responsible investors

On the environmental front, we see:

• Effective reduction of CO₂ emissions associated with certified buildings
• Preferred use of bio-based or recycled materials
• Measured improvement in indoor comfort (air/light quality)

To further encourage these initiatives in 2025:

Indicative list of available aids/subsidies:

• Subsidy up to 20% on costs related to green audits/certifications for projects >3,000 m²
• Specific bonuses for renovations reaching a minimum threshold defined by ministerial decree
• Temporary partial exemption from certain local taxes related to sustainable land use

The Monegasque government also continues its partnership actions with:

• Main local private actors through common charters (“National Pact for Energy Transition”)
• Regular organization of technical workshops bringing together developers/architects/operators around BREEAM feedback

Thus structured around a strong public/private collaborative dynamic and supported by clear incentive policies, the local application of this certification consolidates Monaco among European pioneering locations in green real estate.