Iceland

This Strategy is the basis for the climate adaptation plan, as Article 5(a) of the Climate Change Act No 70/2012 provides that the Minister shall have such a plan prepared. It sets out various core values, core goals and goals for policy areas, coordination, working procedures and general oversight and evaluation.

The goals cover the areas of natural hazards; planning; water and sewage; energy; transport; private sector; fisheries and marine fish farming; agriculture; tourism; insurance and financial activities; public health; national interests, the labour market and social infrastructure; coordination of research and information; coordination of efforts to elaborate and implement measures and general goals across societal structures; and planning, status assessment and general oversight and evaluation of adaptation efforts.

The Climate Action Plan aims to boost efforts in cutting net emissions in order to reach the government‘s aim to make Iceland carbon neutral before 2040. The plan consists of 34 government measures, ranging from an increase in reforestation to a ban on new registration of fossil fuel cars by 2030. The main emphasis of the document is: 1) to phase out fossil fuels in transport, 2) to increase carbon sequestration in land use, by restoration of woodlands and wetlands, revegetation and afforestation.&nbsp; Climate mitigation measures will get an increase in funding of almost 7 billion Icelandic krónur in the period 2019-2023. A general carbon tax, already in place, will be gradually increased (it was increased by 50% in the beginning of 2018, and will be increased by 10% in 2019, and by 10% again in 2020). The plan was thoroughly updated in 2020.&nbsp;

The objective of this Regulation is to reduce greenhouse gas emissions and to ensure that operators of establishments within the scope of the EU Emissions Trading Scheme meet the conditions for participation in the system. This Regulation applies to the licensing allowance of operators falling within the scope of the EU trading system with allowances pursuant to Art. Act no. 70/2012 on climate, ie. on the conditions for issuing an emission permit, form and substance of a permit to issue, a procedure for issuing a permit to issue and changes to a permit to discharge. This Regulation was amended in September 2013 for operational reasons.

In accordance with Article 4 of Directive 2009/28/EC this National Renewable Energy Action Plan (NREAP) sets out the Government's strategic approach and concrete measures on how Iceland will meet the mandatory national targets for 2020 laid down in Directive 2009/28/EC, including the overall target and the 10% target on share of energy from renewable sources in transport. The NREAP is based on the template for the national renewable energy action plans, adopted by the Commission. With this plan, Iceland aims at the following: 1) having renewable energy sources replace imported energy, 2) Iceland‘s energy harnessing shall be sustainable for the good of society and the public, 3) A precautionary and protective approach will be followed in hydroelectric and geothermal energy production, 4) The energy strategy will support diversified industry, emphasising the development of ecologically beneficial high-tech industry, 5) The energy strategy will aim at sustainable utilisation, avoiding for instance aggressive utilisation of geothermal areas, 6) To encourage better energy utilisation, for instance, by developing industrial parks and factories, horticulture stations, recycling and other activities utilising the steam energy of sustainable geothermal plants, and 7) Connection of the Icelandic electricity system to Europe, through an interconnector, shall be examined further.

This Act aims to increase the share of renewable energy sources in land transport and efficiently reduce greenhouse gas emissions accordingly. Art. 3 states that the fuel supplier must ensure that at least 3.5% of the total energy value of the fuel for use in transport comes from renewable sources. This baseline raises to 5.0 % from 1 January 2015. Renewable fuels derived from organic or inorganic waste materials which can not be used in human or animal feed, such as organic waste, solid waste solids, cellulose and lignocellulose can be considered twice as much as the same amount otherwise renewable fuel.&nbsp; Art. 4 defines the fuels complying with this Act, and states that manufacturers or retailers of renewable fuels shall demonstrate that the fuel is renewable and its production complies with the sustainability criteria. Only biofuels considered sustainable by the Ministry in charge of this matter can be deemed renewable (based on biodiversity and carbon impacts).

The objectives of this act are to reduce greenhouse gas emissions economically and efficiently, to increase the binding of carbon from the atmosphere, to promote adaptation to the effects of climate change, and to create conditions for the government to cope with Iceland's international commitments on climate issues. The Environment Agency conducts the implementation of this Act and takes the administrative decisions it is required to take in them. The Agency must also account for greenhouse gas emissions and carbon emissions from atmospheric emissions in accordance with Iceland's international commitments in this area. Article 5 discusses a climate action plan to be prepared by the minister in charge. Since its approval, this Act was amended a number of times.

This law implements a carbon tax for emissions of carbon dioxide in Iceland and defines its legal framework and applicability. It also discusses taxation on electricity and hot water.

This law requires the Civil Protection and Security Council in the Ministry of Justice to create a civil protection policy once every three years. It also requires the National Commissioner of Police to handle day-to-day civil protection matters, including disaster response.

This Act aims at ensuring the origin of electricity produced from renewable energy sources, in order to promote the utilisation of renewable energy sources and create the conditions for trade. Landsnet, Iceland's energy company, is in charge of controlling that the energy comes from renewable sources, based on guidelines established by the National Energy Authority (art. 3).

Iceland National Inventory Report (NIR). 2025

Iceland. Adaptation Communication. Version 1., Adaptation Communication from Iceland in 2023

Iceland National Communication. NC8; Biennial Report. BR5

Iceland's National Inventory Report submitted in 2023

Iceland. 2022 National Inventory Report (NIR), National Inventory Report from Iceland in 2022

515% reduction in emissions from land use (below 2005 levels) by 2030

43% reduction in emissions from EU-ETS Aviation and heavy industry (below 2005 levels) by 2030

66% reduction in ESR emissions for waste management (below 2005 levels) by 2030

5% reduction in ESR emissions for agriculture (below 2005 levels) by 2030

11% increase in ESR emissions for F-gases and chemical use (below 2005 levels) by 2030

67% reduction in ESR emissions for energy production and small industry (below 2005 levels) by 2030

42% reduction in ESR emissions for ships and ports (below 2005 levels) by 2030

21% reduction in ESR emissions for land transport (below 2005 levels) by 2030

29% reduction in ESR emissions (below 2005 levels) by 2030

Net zero - Make Iceland carbon neutral before 2040

10% transport energy from renewable by 2020

5% land transport fuel from renewable by 2015

Iceland

Documents

Targets (17)