Environmental Policies
#30Key Findings
Despite a growing focus on the issue of environmental conservation, Iceland receives comparatively low rankings (rank 30) with regard to environmental policies. Its score on this measure is unchanged in comparison to 2014.
The government’s recently adopted climate strategy contains the ambitious goal of making the country carbon-neutral, with a full energy conversion, by 2040. A 55% emissions reduction as compared to 2005 is targeted for 2030. An early focus is on phasing out fossil fuels in the transport sector, and increasing carbon sequestration through afforestation, revegetation and wetlands restoration.
Climate mitigation measures are slated to receive significant new funding, and a general carbon tax already in place will be gradually increased. A high-profile private initiative is seeking to reduce greenhouse gas emissions by restoring wetlands.
The country is active in Arctic-region environmental affairs. Whaling and fishing practices remain sources of serious contention with the EU and other international bodies.
The government’s recently adopted climate strategy contains the ambitious goal of making the country carbon-neutral, with a full energy conversion, by 2040. A 55% emissions reduction as compared to 2005 is targeted for 2030. An early focus is on phasing out fossil fuels in the transport sector, and increasing carbon sequestration through afforestation, revegetation and wetlands restoration.
Climate mitigation measures are slated to receive significant new funding, and a general carbon tax already in place will be gradually increased. A high-profile private initiative is seeking to reduce greenhouse gas emissions by restoring wetlands.
The country is active in Arctic-region environmental affairs. Whaling and fishing practices remain sources of serious contention with the EU and other international bodies.
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How effectively does environmental policy in your country protect and preserve the sustainability of natural resources and environmental quality?
10
9
9
Environmental policy goals are ambitious and effectively implemented as well as monitored within and across most relevant policy sectors that account for the largest share of resource use and emissions.
8
7
6
7
6
Environmental policy goals are mainly ambitious and effectively implemented and are monitored within and across some of the relevant policy sectors that account for the largest share of resource use and emissions.
5
4
3
4
3
Environmental policy goals are neither particularly ambitious nor are they effectively implemented and coordinated across relevant policy sectors.
2
1
1
Environmental concerns have been largely abandoned.
Historically, environmental policy has not been a high priority on Iceland’s political agenda. The Ministry for the Environment and Natural Resources was established, comparatively late, in 1990. The ministry was a single-issue ministry for the environment until 2013 when it was merged with the former Ministry for Fisheries and Agricultural Affairs. Then, a new minister for environment and natural resources was appointed in 2014, and environment was separated from agriculture and fisheries. In early 2022, in yet another organizational overhaul and increase in the number of ministries, the new Ministry of the Environment, Energy and Climate was created.
Iceland is rich in onshore energy and freshwater resources, and has substantial offshore fisheries. However, apart from the fisheries management system in operation since the mid-1980s, there has been little discussion about how to preserve these resources, reflecting a popular assumption that these resources are, in effect, unlimited.
In April 2019, the government resolved to reduce its carbon footprint by instructing public employees to:
1. Reduce both domestic and international air travel, and use digital technology instead;
2. Use the most environment-friendly option possible to get to and from work;
3. Use electric rental cars where possible.
In September 2018, the government announced a new climate strategy, intended to boost efforts to cut net greenhouse gas emissions. The new measures aim to help Iceland meet its Paris Agreement targets for 2030 and reach the government’s ambitious goal to make Iceland carbon neutral before 2040. The main emphasis of the new plan is on phasing out fossil fuels in transport and increasing carbon sequestration through afforestation, revegetation, and restoration of wetlands. Climate mitigation measures are envisaged to receive a substantial increase in funding, almost ISK 7 billion, between 2019 and 2023. A general carbon tax, already in place, will be gradually increased.
The Agreement on the Platform for the Coalition Government of the Independence Party, the Left-Green Movement and the Progressive Party in November 2021 emphasizes environmental issues. Stating that “Iceland should be at the forefront of international environmental action,” it says that “an independent national target of a 55% reduction in emissions for which Iceland is directly responsible by 2030, compared to 2005 levels. Emphasis will be placed on targeted and ambitious measures to reduce emissions from land use and accelerate energy conversion in all areas. The goal is to achieve carbon neutrality and full energy conversion no later than 2040, which will make Iceland the first state to be independent of fossil fuels.” These words signal ambitious intentions in environmental affairs.
A privately run environmental initiative is The Wetlands Fund (Votlendissjóður), a private equity fund operated by socially responsible companies and individuals. The fund aims to reduce greenhouse gas emissions through wetland restoration in collaboration with landowners, the state, municipalities, companies, NGOs and individuals. Research shows that drained wetlands are responsible for about 60% of CO2 emissions in Iceland. This proportion does not include international flights over Iceland, but all other transport and industry are included. Wetland restoration is an effective measure against climate change.
Not much is known about the possible environmental effects of the rapid expansion of foreign tourism. Prior to the collapse of tourism due to the COVID-19 pandemic, which struck in 2020, the number of tourists arriving in Iceland each year had increased to seven times Iceland’s population.
Citations:
Agreement on the Platform for the Coalition Government of the Independence Party, the Left Green Movement, and the Progressive Party. November 2021.
Law on nature protection (Lög um náttúruvernd) 2013 nr. 60, 10 April.
Votlendissjóður. https://www.votlendi.is/hlutverk.
Vernd og orkunýting landsvæða (rammaáætlun) 89. mál þingsályktunartillaga Þál. 13/141 141. löggjafarþingi 2012 – 2013.
Government Offices of Iceland: https://www.government.is/news/article/2018/09/10/Iceland-launches-new-Climate-Strategy-boosting-efforts-to-reach-Paris-goals/. Accessed 22 December 2018.
Iceland is rich in onshore energy and freshwater resources, and has substantial offshore fisheries. However, apart from the fisheries management system in operation since the mid-1980s, there has been little discussion about how to preserve these resources, reflecting a popular assumption that these resources are, in effect, unlimited.
In April 2019, the government resolved to reduce its carbon footprint by instructing public employees to:
1. Reduce both domestic and international air travel, and use digital technology instead;
2. Use the most environment-friendly option possible to get to and from work;
3. Use electric rental cars where possible.
In September 2018, the government announced a new climate strategy, intended to boost efforts to cut net greenhouse gas emissions. The new measures aim to help Iceland meet its Paris Agreement targets for 2030 and reach the government’s ambitious goal to make Iceland carbon neutral before 2040. The main emphasis of the new plan is on phasing out fossil fuels in transport and increasing carbon sequestration through afforestation, revegetation, and restoration of wetlands. Climate mitigation measures are envisaged to receive a substantial increase in funding, almost ISK 7 billion, between 2019 and 2023. A general carbon tax, already in place, will be gradually increased.
The Agreement on the Platform for the Coalition Government of the Independence Party, the Left-Green Movement and the Progressive Party in November 2021 emphasizes environmental issues. Stating that “Iceland should be at the forefront of international environmental action,” it says that “an independent national target of a 55% reduction in emissions for which Iceland is directly responsible by 2030, compared to 2005 levels. Emphasis will be placed on targeted and ambitious measures to reduce emissions from land use and accelerate energy conversion in all areas. The goal is to achieve carbon neutrality and full energy conversion no later than 2040, which will make Iceland the first state to be independent of fossil fuels.” These words signal ambitious intentions in environmental affairs.
A privately run environmental initiative is The Wetlands Fund (Votlendissjóður), a private equity fund operated by socially responsible companies and individuals. The fund aims to reduce greenhouse gas emissions through wetland restoration in collaboration with landowners, the state, municipalities, companies, NGOs and individuals. Research shows that drained wetlands are responsible for about 60% of CO2 emissions in Iceland. This proportion does not include international flights over Iceland, but all other transport and industry are included. Wetland restoration is an effective measure against climate change.
Not much is known about the possible environmental effects of the rapid expansion of foreign tourism. Prior to the collapse of tourism due to the COVID-19 pandemic, which struck in 2020, the number of tourists arriving in Iceland each year had increased to seven times Iceland’s population.
Citations:
Agreement on the Platform for the Coalition Government of the Independence Party, the Left Green Movement, and the Progressive Party. November 2021.
Law on nature protection (Lög um náttúruvernd) 2013 nr. 60, 10 April.
Votlendissjóður. https://www.votlendi.is/hlutverk.
Vernd og orkunýting landsvæða (rammaáætlun) 89. mál þingsályktunartillaga Þál. 13/141 141. löggjafarþingi 2012 – 2013.
Government Offices of Iceland: https://www.government.is/news/article/2018/09/10/Iceland-launches-new-Climate-Strategy-boosting-efforts-to-reach-Paris-goals/. Accessed 22 December 2018.
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To what extent does the government actively contribute to the design and advancement of global environmental protection regimes?
10
9
9
The government actively contributes to international efforts to design and advance global environmental protection regimes. In most cases, it demonstrates commitment to existing regimes, contributes to their being advanced and has introduced appropriate reforms.
8
7
6
7
6
The government contributes to international efforts to strengthen global environmental protection regimes. It demonstrates commitment to existing regimes and occasionally contributes to their being advanced and/or has introduced some appropriate reforms.
5
4
3
4
3
The government demonstrates commitment to existing regimes, but does not contribute to their being advanced and has not introduced appropriate reforms.
2
1
1
The government does not contribute to international efforts to strengthen global environmental protection regimes.
The new Ministry of the Environment, Energy and Climate is responsible for the country’s involvement in international environmental affairs. Iceland participates in the United Nations Environment Programme and is active under the Rio Declaration and Agenda 21 in areas of sustainable development. Iceland is also one of the eight member states of the Arctic Council, a cooperation forum directed primarily toward environmental affairs and sustainable development, which includes five working groups. Two of these working groups – the Conservation of Arctic Flora and Fauna and Protection of the Arctic Marine Environment – are located in Akureyri, in the north of Iceland. In early 2016 it was decided to move the secretariat of the International Arctic Science Committee (IASC) from Potsdam, Germany to Akureyri. The mission of IASC is to encourage and facilitate cooperation in all aspects of Arctic research, among all countries engaged in Arctic research and in all areas of the Arctic region.
Whaling remains a controversial economic activity in Iceland. On 15 September 2014, all 28 EU member states as well as the United States, Australia, Brazil, Israel, Mexico, and New Zealand formally protested the continued practice of whaling in Iceland. The government of Iceland has not yet reacted to this protest and whaling continues, even though it is increasingly difficult to find markets for whale meat. Whale watching is popular among tourists.
Iceland is still engaged in a dispute with the European Union over quotas for mackerel fishing. In 2014, an agreement was reached between the European Union, Norway, and the Faroe Islands. However, the agreement did not include Iceland. Mackerel migrates in huge numbers from international to Icelandic waters and Iceland has been accused of overfishing mackerel. No agreement had been reached with these counterparties by early 2022.
Iceland was fully engaged at the Paris conference on climate change in late 2015 and, on 22 April 2016, the minister of environment and natural resources signed the Paris agreement. New measures included in a new climate strategy (September 2018) are meant to help Iceland meet its Paris Agreement targets for 2030 and reach the government’s ambitious goal to make Iceland carbon neutral before 2040.
Citations:
Fiskistofa (2022), Staða makrílveiða (The state of mackerel fishing), http://www.fiskistofa.is/veidar/aflastada/afliimakril/. Accessed 2 February 2022.
Whaling remains a controversial economic activity in Iceland. On 15 September 2014, all 28 EU member states as well as the United States, Australia, Brazil, Israel, Mexico, and New Zealand formally protested the continued practice of whaling in Iceland. The government of Iceland has not yet reacted to this protest and whaling continues, even though it is increasingly difficult to find markets for whale meat. Whale watching is popular among tourists.
Iceland is still engaged in a dispute with the European Union over quotas for mackerel fishing. In 2014, an agreement was reached between the European Union, Norway, and the Faroe Islands. However, the agreement did not include Iceland. Mackerel migrates in huge numbers from international to Icelandic waters and Iceland has been accused of overfishing mackerel. No agreement had been reached with these counterparties by early 2022.
Iceland was fully engaged at the Paris conference on climate change in late 2015 and, on 22 April 2016, the minister of environment and natural resources signed the Paris agreement. New measures included in a new climate strategy (September 2018) are meant to help Iceland meet its Paris Agreement targets for 2030 and reach the government’s ambitious goal to make Iceland carbon neutral before 2040.
Citations:
Fiskistofa (2022), Staða makrílveiða (The state of mackerel fishing), http://www.fiskistofa.is/veidar/aflastada/afliimakril/. Accessed 2 February 2022.