Energy Transition: The Real Estate Challenge - Part One

The Principality of Monaco has committed to reducing its greenhouse gas (“GHG”) emissions by 55% by 2030, compared with 1990 levels, to achieve carbon neutrality by 2050. In this respect, the Mission for Energy Transition ("MET"), created to manage projects to limit these GHG emissions and develop renewable energy, has set up a national action plan, financed by the Green Fund, with a €25 million budget.

This plan focuses on the three sectors that emit the most GHG emissions: road transport, waste treatment and buildings’ energy consumption (particularly heating and air conditioning). The latter sector, which is the focus of this article, currently represents approximately 35% of GHG emissions.

Monaco has around 1,480 buildings and even if the new ones are increasingly efficient in terms of energy consumption, they still only represent one percent of the building stock, all the others being old. It is therefore on this last category of buildings that efforts must be concentrated, in partnership with the building managers, whose role is essential for the success of this energy transition and for meeting the objectives. In fact, building managers are already involved in a number of topics such as facade renovation, energy audits and consumption monitoring. 

In order to support and accelerate the changes necessary for the renovation of this built heritage in order to increase its energy efficiency, many incentive measures, which can be combined, and some of which are limited in time, as listed below, have been put in place and are added to an already existing system and to the regulations in force.

 

Restoration of a notable building

For operations such as the restoration of facades, replacement of shutters, change of entrance doors, repair of mouldings, deterioration’s adjustments, repair of roofs, etc., a financial assistance is allocated up to 30% of the cost of the work, with a capped amount of €20,000, until 31 December 2021.

 

Work in a dwelling for residential use

The tenant or owner of this type of dwelling located in Monaco may apply for a grant of 20% of the cost of the work, up to a maximum of €2,000 for those over 65 years old and €1,500 for those under 65 years old, paid directly to the company on receipt of the invoice.

 

Upgrading to standards of dustbin storage

There is a regulatory obligation to bring these storages up to standards in order to improve their accessibility, safety and to allow waste sorting. Aid is allocated to the first 100 owners or building managers who request it. The amount, limited to 50% of the cost of the work, is capped at €10,000 if the work is carried out before 30 June 2021.

 

Window renovation

Poorly insulated or single-glazed windows cause 15 to 30% of energy loss. For this reason, a grant is available to owners who apply before 31 August 2025 for the renovation of single-glazed windows in their dwellings, as well as in the communal areas of their residential or mixed-use buildings located in Monaco (provided that they have been completed for at least 10 years at the time of the application).

The amount of the grant per owner depends on the number of dwellings concerned, calculated by means of a percentage applied to the amount of work including all taxes and capped at a certain amount per window, which may be increased in certain cases. However, the total amount awarded to a single owner may not exceed €20,000 including all taxes.

 

Roof insulation

Aid may be granted to owners who wish to insulate flat roofs, unconverted loft space or pitched roofs in buildings that have been completed for at least 10 years at the time of application.

The amount is fixed, per building, at 35% of the cost of the works, including all taxes, up to a limit of €50,000.

This amount is increased by 5% on the amount including all taxes of the subsidised work and by €10,000 with regard to the maximum amount when a company established in Monaco carries out the work (mandatory until 31 December 2021).

 

Renovation of commercial premises

A subsidy may be granted to the first traders, located in the Principality, who apply for it in order to carry out embellishment or renovation work on their premises, already opened to the public or vacant, with a view to returning these premises to commercial use. If the application is accepted, the amount of the grant is 20% of the cost of the work, including taxes, up to a maximum of €10,000.

The State will then pay this amount directly to the company (located in Monaco) on an invoice basis and once the work has been carried out before 30 June 2021.

 

Purchase of small appliances and fixtures intended to reduce energy consumption

A subsidy, valid until 30 June 2021, can be granted for these purchases for dwellings of individuals and business premises located in the Principality, with a capped amount of €3,000 and covering up to 30% of the total amount of eligible invoices. It is valid only once per beneficiary and is limited to certain reasons, such as the replacement of a gas or older generation cooker with an A-rated electric one, the purchase of LEDs or the installation of thermostatic radiator valves. The small appliances and fixtures must either be purchased on Monegasque territory or installed in the apartments or premises by a Monegasque company.

For equipment that may have an impact on the facades, it is required to contact the Department of Forward Studies, Urban Planning and Mobility to have the work projects approved and with the co-owned building manager, whose agreement will be requested in order to benefit from the grant.

 

Call for exemplary renovation projects

This measure is aimed primarily at the oldest housing buildings (pre-1990), also known as notable buildings, which are responsible of the highest GHG emissions. The aim is to accelerate their energy renovation by allocating, from the first quarter of 2021, subsidies for studies and work (wall and roofing insulation, change in energy generation, etc.), if the project has been selected, and after an energy audit has been carried out. Projects will be required to comply with a Sustainable Mediterranean Buildings of Monaco (“BD2M”) approach.

The ceilings will vary according to the project and all winners will benefit from the same capped amount.

Several counters will be opened for a minimum of 2 years to give co-owner buildings time to carry out their audits and their BD2M works program and benefit from these grants.

 

For further information, please visit the official website of the Principality's Energy Transition: transition-energetique@gouv.mc

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This range of measures will enable the Principality to move towards a responsible society, with more moderate energy consumption, based in particular on renewable energy.

It is therefore up to all those involved in the real estate sector - architects, builders, developers, property managers - to go into action and train themselves on all measures to reduce GHG emissions and to be proactive on energy issues.

 

Valeri Agency, as a property and co-owner building manager, is concerned by this energy transition and will be able to explain the measures and help you in your projects.

Do not hesitate to contact us!