Iceland: A Sustainability Case Study - Laurence Chapman

In August 2020, I joined two friends on a weekend trip to Iceland. We flew on the Friday and stayed until Sunday evening. During our short time there, we drove a hired 4X4 hundreds of miles from our Reykjavík AirBnb; covering many of the best waterfalls and attractions, from a glacier to the tectonic fault line and the original spot where Icelandic parliamentary democracy was founded.

From our short stay there, it was clear to me that Iceland is a global leader when it comes to environmental policy and promoting sustainability and environmental protection.

The use of geothermal energy is extensive. Unlike perhaps any other country, Iceland is in a unique position of having volcanic activity underneath most of its ground, meaning it can harness the energy for electricity and hot water. We experienced the unique use of geothermal energy at the Blue Lagoon which is said to be one of the twenty-five wonders of the world. Hosting a modern hotel and spa complex which looks like the extravagant home of a Bond villain, the Blue Lagoon is an outdoor pool which is naturally blue due to its silica content and is around forty degrees-celsius thanks to the thermal energy pumped up from underneath[1].

Although Iceland needs to use its unique features and protect its environment for its tourism-reliant economy, one gets the impression that, as a nation, they genuinely care about sustainability and environmental protection; from preserving wildlife and habitats, to using more sustainable energy sources.

Iceland being a world leader in addressing pollution control and management of natural resources was confirmed in an environmental performance report[2] by Yale and Columbia University. Iceland understands the balance and link between economic activity and sustainability, and how they can be complimentary. For example, their sustainable quota system for fisheries appear to be working by supporting an important section of the economy whilst remaining sustainable. Additionally, Iceland is a global fighter for cleaner waters, boasting some of the cleanest territorial oceans in the world.

Aiming to halt and reverse the soil erosion and desertification occurring in Iceland is one of the country’s main environmental priorities. This happens mainly due to wind erosion on the vast empty plains that scatter the Icelandic countryside between mountain ranges. The Icelandic Soil Conservation Service has been fighting to reclaim land lost to desertification since 1907[3].

One of the most important things that Iceland has to focus on is the fine balance between growing demand for energy from tourism which is important for the economy and preserving some of Europe’s last great, unique wildernesses. This can be done through careful planning, conservation efforts and pushing for clean energy such as from hydroelectric and geothermal sources in limited areas of land.

The Icelandic Ministry for Environment has seen growth in size and competencies since the 1990s. It now covers areas such as pollution control, nature preservation, mining and planning[4]. In recent years, environmental and land-related legislation has been extended, mostly as a result of participating in the European Economic Area and European Union which has resulted in a solid framework for managing resources. Although much has been done in balancing environmental and economic impacts in areas such as hazardous waste and fishing, there is arguably still scope for cutting down on emissions and increasing user fees for environmental services through the implementation of economic instruments.

This appears to be working slowly with economic activity increasing across all major industries whilst NOx and SOx are increasing slower than GDP. A major switch from oil to geothermal heating has also helped improve Iceland’s pollution management. As well as the aforementioned fishing quota system, Iceland maintains sustainable use of natural resources whilst protecting its important nature reserves through the use of planning restrictions, municipality boundaries and land ownership rights. Generally speaking, all this has been followed and developed from the plan put in place in The National Environmental Strategy, ‘Towards Sustainable Development’[5] and the subsequent 1997 National Sustainable Development Action Plan.

Iceland is always expanding and reviewing its sustainability goals and environmental protection rules through regular meetings. For instance, almost 2,000,000 hectares of land (in around 100 sites) are now protected under the Nature Conservation Act as well as under other laws. To balance the production of renewable energy and protect land, Iceland’s Ministry of Industry has now developed a master plan for hydro and geothermal energy resources[6].

Moreover, based upon EU regulations, Iceland has detailed legislation on Environmental Impact Assessments. The Icelandic Environmental Impact Assessment Act[7] aims to ensure that for projects which may have significant environmental, community and nature effects have a full assessment completed. This is then checked and used in the planning process whilst being published to encourage public contribution[8].

However, with the exception of several European micro-states, Iceland still has the second-highest rate of vehicle ownership in the world and has very few electric and hybrid cars which are unable to cover the vast distances required in the baron landscape in sub-zero temperatures. Iceland’s minimal public transport also induces a higher vehicle ownership rate. Perhaps in the future, Icelandic people may be able to use electric vehicles when the technology improves and use renewable energy to power them.

Moreover, Iceland’s greenhouse gas emissions are not what one may think. Exposed after the Paris Convention in 2015, Iceland’s greenhouse gas emissions increased by 19% between 2005 and 2013. Per capita, this equates to 14 tonnes which is higher than Japan, the UK, Germany, Russia and South Korea.[9]. Although Iceland was allowed to increase its carbon emissions under an exemption in the 1997 Kyoto Protocol, it is still expected to miss its next UN convention targets.

Iceland lacks the nuclear waste, pesticide factories and open pit mines of other developed.

Although Iceland is clearly working towards being a prosperous sustainable nation through its environmental protection laws, following EU regulations and expanding its Ministry for Environment, the country also profits from its green image.

Internationally, Iceland is seen as one of the most beautiful and environmentally friendly states in the world. However, much of this is thanks to some of its policies and branding. When you walk into Keflavík Airport, a large poster from Landsvirkjun, the state power utility, welcomes you to “the land of renewable energy.” The official government website even proclaims that “Iceland is the world’s greenest country.” Although, at a first glance, Iceland’s total footprint is very low, this is due to its population size (330,000). When scaled up to the size of France or Germany’s, this small island would be one of the worst on the planet.

To conclude, Iceland, although beautiful, has a more complex relationship with sustainability and environmental protection than previously thought. There is no doubt that some good progress has been made by Iceland, and that the country protects its valuable and unique land well by using renewable energy in many areas. However, it is also apparent that Iceland has an environmental paradox; the country profits from its strong green-image branding, and from protecting its prettiest environments as they are the country’s main tourist attraction. In reality, Iceland is not convincingly the sustainable world leader one might think it is, with surface research or even a weekend tourist trip there concluding this.

[1] Official Blue Lagoon Information Site [2] Environmental Performance Index (EPI); Yale Centre for Environmental Law & Policy and the Centre for International Earth Science Information Network at Columbia University, in collaboration with the World Economic Forum and the Joint Research Centre of the European Commission. [3] The Icelandic Soil Conservation Service. (Icelandic Government 2020) [4] The OECD Environment Programme: Environmental Performance Review of Iceland. [5] The National Environmental Strategy, ‘Towards Sustainable Development’, (1993) [6] Iceland Master Plan for Hydro and Geothermal Energy Resources [7] The Icelandic Environmental Impact Assessment Act [8] Iceland, D. Sigurðardóttir, European Procurement & Public Private Partnership Law Review Vol. 12, No. 3 (2017), pp. 358-364. [9] Greenhouse Gas Emissions Statistics: Tonnes Per Capita: Japan (9); the UK (8); Germany (9); Russia and South Korea each (12.5). See also: Iceland’s Environmental Paradox.