At its 127th session on 19 May 2026, the Montenegrin Cabinet established the Draft Law Amending the Law on Environmental Liability, which regulates the procedure for determining liability for environmental damage and the application of preventive and remedial measures. The draft fully harmonises national legislation with Directive 2004/35/EC of 21 April 2004, fulfilling obligations under Negotiating Chapter 27 - Environment and Climate Change.
The directive's objective is to remedy damage "in kind", restoring the environment to its original condition rather than providing monetary compensation, and the law establishes environmental liability as a special category distinct from civil liability. At the same session the Cabinet adopted the Decree on Activities and Installations Requiring an Integrated Permit, transposing the EU Industrial Emissions Directive.
For investors weighing land or projects with environmental exposure near Tivat, Luštica Bay or the wider Bay of Kotor, this is incremental Chapter 27 momentum and a tightening compliance regime to watch through 2026.
Source: Government of Montenegro