The Icelandic Climate Council will soon conclude its four-year appointment period. On this occasion, the council assessed the progress made in domestic climate action during the last four years.

Humanity is currently experiencing a climate-related transformation on an unprecedented scale. Climate change is an existential threat to humanity and amplifies other global threats. In the assessment report of the Intergovernmental Panel on Climate Change (IPCC), which Iceland, along with other member states, approved in March 2023, it was reaffirmed that halving global greenhouse gas emissions by 2030 is necessary to limit global warming to a 1.5°C increase. Fundamental system changes are required in all areas, including international investments and financial systems. To fulfil that goal, the transition must also be fair and contribute to the protection and restoration of biodiversity.

Iceland is among the countries that have released the most greenhouse gas emissions per capita since 1990. Based on the European Economic Area (EEA) agreement, Iceland participates in the cooperation of European countries on climate actions. Still, Iceland’s and Norway’s involvement in the decision-making process within the cooperation is limited. Therefore, it is crucial for the national government to closely monitor, intervene promptly, and inform the public about Iceland’s objectives within the European context. At the same time, the Parliament and public administration need to make efforts to inform the public about the challenges that lie ahead, must engage in an open dialogue about the way forward, and strive to achieve consensus on necessary actions.

Icelandic society has already experienced and will increasingly face disruptions due to direct and indirect consequences, both domestically and internationally, of climate change. Adequate and targeted adaptation measures need to be implemented to respond effectively. Experience has shown that good preparedness and response plans significantly reduce the damages and societal costs associated with climate change impacts. An adaptation strategy is in place, and an action plan is being developed; in addition, five municipalities are participating in a recent adaptation project under the responsibility of the Ministry for the Environment, Energy, and Climate and the Icelandic Regional Development Institute. It is crucial to follow the adaptation strategy and implement the measures outlined in the following action plan as soon as possible.

The government’s actions on climate affairs have not yielded the desired results. Progress has only been made in a few areas, while overall emissions have increased. A well-defined climate policy with time-bound and measurable goals is still lacking, despite the existence of an action plan. If no corrective measures are taken, Iceland will not meet its commitment to reduce emissions by 2030, which it has jointly undertaken with EU member states. Furthermore, it will further deviate from the goal of carbon neutrality by 2040. As a nation, we bear a shared responsibility to address the climate crisis, and it is urgent that elected representatives, both in the Parliament and local governments, assume their greater responsibility with enhanced seriousness and commitment.

According to the Climate Council’s opinion, the public authorities must prioritize the following:

1. A clear climate policy must be formulated.
2. Climate governance at the national and local levels needs to be strengthened and enhanced.
3. Government action must be intensified, and all policy tools should be effectively employed to achieve the objectives.
4. Expert knowledge across a wide range of climate issues must be utilized in policymaking and follow-up.
5. The capacity of governments and the business sector to collectively respond to the climate crisis needs to be further activated.
6. Significant improvements are needed in research and monitoring of land-based emissions to support decision-making.

1. A clear climate policy must be formulated.

• A clear and holistic climate policy with timed and measurable short and long-term goals for all sectors is still lacking, despite the presence of an action plan. Therefore, it remains unclear how Iceland intends to achieve its international and domestic commitments for emissions reduction by 2030. At the same time, Iceland needs to be prepared to participate in the carbon-neutral economy that is emerging internationally and be ready for the rapidly growing risk of climate change impacts. There is also a lack of shared understanding of what the legislative goal of carbon neutrality by 2040 entails and how to effectively implement it within the next 17 years. Long-term plans and short-term goals are not aligned. The lack of long-term vision and predictability undermines all government, business, and household actions.
• The Climate Council urges national and local authorities to promptly create an environment for shaping a clear vision of the future, which promotes fair transitions and connects climate goals with objectives in public finance, changing business practices, accelerating technological development, societal changes, and consumption patterns. Such a climate policy needs to be shaped in a cross-party manner, through open dialogue and presented for discussion and approval at Althingi (Icelandic Parliament). It is also crucial that Althingi will regularly be informed in a formal manner about the progress of climate actions, enabling direct involvement in monitoring Iceland’s climate goals
• A fair transition is a prerequisite for achieving consensus on necessary climate actions and ensuring success. Thus, climate policy and action plans must be based on this crucial foundation.

2. Climate governance at the national and local levels needs to be strengthened and enhanced.

• The Climate Council reiterates its previous recommendations regarding the need for coordination within the Government regarding climate issues. It is essential to ensure that issues related to climate receive the importance that corresponds to being one of society’s primary priorities for the next decades. Furthermore, political leadership in climate issues needs to be strengthened through a clear and transparent division of responsibilities between ministries and clear ministerial accountability. Collaboration among officials from the relevant ministries responsible for specific aspects of climate issues should be formalized and transparency in policymaking and coordinated actions actively ensured.
• It is urgent to enhance climate governance at both the national and local levels and ensure the direct involvement of municipalities in all climate-related policy-making and decision-making processes conducted by the government. Simultaneously, efforts should be made to improve and enhance the services and support provided to municipalities by the relevant institutes.

3. Government measures must be intensified, and all policy tools should be effectively employed to achieve the objectives.

• The Climate Council reiterates its concerns, as stated in its statement on June 9, 2022, that the goals for reducing greenhouse gas emissions by 2030 are unclear and insufficient. Calculations indicate that based on the current policies and actions of the governments, fossil fuel consumption will continue to increase. It is evident that the measures taken by the government in recent years have not yielded the intended results, and Iceland still has a long way to go to meet international as well as domestic commitments regarding emission reductions.
• The Climate Council urges the government to take decisive action and assume clearer leadership in implementing necessary measures to reduce greenhouse gas emissions in all sectors. The Council also recalls its previous recommendations on the need for effective implementation of climate governance at all levels of government, where economic governance supports climate objectives. Additionally, there is a need for more effective utilization of spatial planning, including national land-use planning, in support of climate objectives. Continued development of renewable energy infrastructure, improved energy efficiency, and reduction of loss in electricity, which is proportionally significant domestically, must be pursued.

4. Expert knowledge across a wide range of climate issues must be utilized in policymaking and follow-up.

• It is essential to ensure that policy formulation and decisions in the field of climate change are based on the best available knowledge. The Climate Council has previously pointed out this is not the case and reiterates its earlier recommendations. The Council also emphasizes that climate policy and actions need to be grounded in reliable social and economic data on the societal impacts of climate measures, in addition to environmental scientific evidence.
• The Climate Council urges the national and local authorities to establish as soon as possible, their vision and strategy on how scientific advice should be applied in policy formulation and decision-making processes. The Council also reiterates its recommendations that the Science and Technology Council should review the allocation of funds for research and participation in domestic and international collaborations related to climate change issues.

5. The capacity of governments and the business sector to collectively respond to the climate crisis needs to be further activated.

• Collaboration between the Ministry of Environment, Energy, and Climate and the business sector on measures that can deliver results by 2030 has shown progress, with seemingly a strong willingness from the business community to work together. This raise hopes that a shift in practices is underway. To facilitate this transition, climate governance needs to move to an emergency level, working closely with businesses and investors and providing them with prompt guidance and support through effective governance mechanisms. It is crucial to maintain transparency regarding goals, strategies, and outcomes.

6. Significant improvements are needed in research and monitoring of land-based emissions to support decision-making.

• Greenhouse gas emissions from land use are relatively significant in Iceland, making it crucial to have well-founded data on the carbon balance of ecosystems through robust research and monitoring. The Climate Council reiterates its call for a formal pathway for scientific advisory on this important but understudied field within the country.
• Emissions from land use have not been subject to binding targets for actual reduction in net emissions, but that will change starting in 2026. This change will have significant implications domestically. Although the government has made considerable progress in research and monitoring in this field in recent years, it is necessary to allocate much greater resources to data collection on the carbon balance of the country’s ecosystems.