The City

Monaco Promotes Purchase of Electric and Hybrid Vehicles to Support the Most Virtuous

June 29, 2023
Monaco Promotes Purchase of Electric and Hybrid Vehicles to Support the Most Virtuous

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Monaco's government has made the purchase of an eco-friendly vehicle a cornerstone of its policy since 1994. Thanks to this incentive, nearly 15% of vehicles in Monaco are eco-friendly, 48% of which are electric.

Starting from June 26, 2023, the aid mechanism is set to evolve to support the purchase of the most virtuous vehicles, both by individuals and professionals. For personal vehicles, the conditions are as follows:

The vehicle must be electric or hybrid electric-petrol and cost less than €60,000 excluding options. The aid amount varies according to the CO² emission level, with three possible scenarios:

  • Vehicles emitting less than 21 g/km of CO² receive aid of 30% of the vehicle's base price (capped at €10,000).
  • Vehicles emitting between 21 to 50g/km of CO2 receive a flat-rate premium of €5,000.
  • Those emitting between 51 to 98 g/km of CO2 receive a flat-rate premium of €1,500.

An incentive system has also been set up to benefit professionals and associations adopting virtuous, electric or hybrid electric-petrol vehicles in their activities. For the purchase of electric goods trucks >3.5 tons emitting less than 21 g/km of CO², the aid has been set at 30% of the vehicle's base price (capped at €15,000).

In the case of hybrid goods trucks >3.5 tons emitting between 21 to 50 g/km of CO², a fixed-rate premium of €10,000 is provided. For vehicles with emissions between 51 to 98 g/km of CO², the premium is €5,000.

For transport vehicles for professional use (e.g., taxis, rental cars with drivers), the aid mechanism is as follows:

- If the vehicle is electric or a hybrid electric-petrol and emits less than 21 g/km of CO², the aid is 30% of the base price of the vehicle (capped at €12,000).
- If the vehicle emits between 21 to 50g/km of CO², a fixed-rate premium of €7,000 is given.
- If the vehicle emits between 51 to 98 g/km of CO², a fixed-rate premium of €3,000 is awarded.

This new structure of aid mechanisms aims to encourage more citizens, professionals, and associations in Monaco to adopt electric or hybrid vehicles, leading to further reductions in greenhouse gas emissions and a healthier environment.

All these measures come as part of Monaco’s wider initiative to combat climate change and uphold its commitment to sustainability. They will be regularly reassessed and adapted according to market trends and technological developments.

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