Ensuring ownership of the Sustainable Development Goals and the VNRs
Awareness raising
Since 2017, the government has emphasised raising awareness of Agenda 2030 and the Sustainable Development Goals. It has been clear from the beginning that Iceland will not reach the goals without widespread awareness and participation from the public, academia, civil society, and the private sector.
Two promotional campaigns were launched when Iceland’s first VNR report was published in 2019: one social media campaign envisioning the world in 2030 when the SDGs had been realised and one documentary series about an Icelandic teenage girl who travelled to Uganda, Iceland’s partner country in development cooperation, featuring the differences and similarities between the daily life of young people in the two countries, highlighting how some of the SDGs come into play.
In the spring of 2021, seventeen short television shows, one for each SDG, aired on RÚV, the Icelandic National Broadcasting Service. The shows were made for children and featured two kids, Aron Gauti Krinstinsson and Steinunn Kristín Valtýsdóttir, and their quest to learn about the SDGs. The aim was to educate children and young people about the SDGs and to encourage critical discussions about sustainable development at the national and international level. The episodes are available on the government’s SDG website together with teaching material from the UN that the UN Association in Iceland has translated. The shows were produced by KrakkaRÚV, the children’s channel on RÚV, in close collaboration with the Prime Minister’s Office and the Ministry for Foreign Affairs. When the shows aired, the Prime Minister, Minister for Foreign Affairs, and Minister for Education sent a letter to all primary schools encouraging teachers to familiarize themselves with the material and implement it in their teaching.
Awareness surveys
Six awareness surveys have monitored the success of SDG promotions in Iceland since 2017. Market research companies surveyed adults (18+) and asked the same questions each time.
Do you know, or have you heard of, the Sustainable Development Goals?
How well or poorly do you know the Sustainable Development Goals?
Do you work a lot or a little with the Sustainable Development Goals in your workplace or studies?
Where have you heard or seen information about the Sustainable Development Goals?
Respondents have also been asked twice to answer the question, “which of the Sustainable Development Goals would you like to see emphasized the most in Icelandic society today”. In the last survey, “which of the Sustainable Development Goals would you like to see given the greatest emphasis in the international community today” was asked.
Around 70% of respondents were aware of, or had heard of, the SDGs in 2018. This increased to almost 80% in 2020 due to government promotional campaigns and a popular TV series called “What have we done?” that discussed climate change and the SDGs.
New survey results show that more women (34%) than men (29%) know about the SDGs, and awareness is higher in the capital area (39%) than in the countryside (20%). Education and income are also important factors for awareness. Age is not a significant variable, but the highest age group (65+) has the lowest awareness (10%).
Of the respondents who know or have heard about the SDGs, 32% report knowing them well, and 37% work with them in their workplace or studies. Women and younger age groups are more likely to work with the goals, and higher education and income levels also have significant effects. The top five SDGs that participants would like to see emphasized the most in Icelandic society underwent considerable changes between 2021 and 2023. Health and well-being (SDG 3) has moved up to second place, while climate action (SDG 13) has moved down to fourth place. Environmental SDGs are generally considered less important than social and economic goals.
The respondents rank the SDGs in a different order internationally than domestically. Internationally, peace and justice (SDG 16), no hunger (SDG 2), and no poverty (SDG 1) are placed in the top three (see figure 5.4.), while environmental and climate-related goals are ranked in a similar order of importance as domestically.
The results of awareness surveys and focused measurements like these provide important information for the government’s implementation of the SDGs and strategic planning in the field of sustainable development. The survey results show that about a third of the population is not aware of the existence of the SDGs and that background variables such as gender, place of residence, age, education, and income have significant effects. Therefore, efforts must be made to reach the groups that have been left behind in terms of awareness with customized information material and consultation to ensure a just green transition will be just and inclusive sustainable development.
Website and project portal
In 2019, the government launched an online SDG portal that gives individuals, NGOs, business, institutions, municipalities, and others the opportunity to introduce projects that contribute to Iceland’s progress towards the SDGs. The purpose of the portal is to share information, to get ideas on how to incorporate the SDGs into your activities, and to find possible partners. Submitted projects must include new, measurable goals that promote sustainable development and the advancement of the SDGs. A timed plan must be included that specifies when the goal is expected to be achieved. In developing the portal, a few foreign examples were analysed, including Society’s Commitment to Sustainable Development from Finland and Australia’s SDG website.
In addition to the project portal, the government’s SDG website contains information about the 2030 Agenda and the Sustainable Development Goals, an online dashboard featuring the government’s assessment of Iceland’s progress towards the SDGs, toolboxes for municipalities and businesses, and other practical material on sustainable development and the government’s actions.
Business sector
In 2018, the government’s working group on the SDGs initiated the first partnership agreement with the Festa – Icelandic Center for Sustainability on promotional work among Icelandic corporations on the SDGs. Since then, the partnership has continued and evolved. Festa is a non-profit organization with almost 200 associated members which include all sizes of Icelandic companies, public organizations, pension funds, universities, the Central bank of Iceland, the City of Reykjavik, and a few other municipalities.
Festa agrees to continue to focus on the SDGs in its educational programs and lectures and to link all events to relevant SDGs in its event advertising. Also, Festa uses its media to promote the SDGs in the business world and to encourage its members to participate in the implementation of the SDGs. A few projects have been established alongside those broad objectives, such as, 17 Rooms workshops, a toolbox for Icelandic corporations, and education on upcoming changes in corporate sustainability reporting.
17 Rooms
As per an agreement in 2021, three pilot workshops organized by Festa took place based on the 17 Rooms methodology developed by the Brookings Institute and the Rockefeller Institution. The participants came from Festa’s member organizations, state and municipal authorities, non-profit organizations, and universities. The circular economy was a theme in all the workshops, and two of them specifically covered SDG 12 on sustainable consumption and production and SDG 13 on climate action.
The 17 Rooms approach involves participants from different sectors and with knowledge backgrounds coming together in a room, or workshop, for each SDG. The participants identify actions that can be carried out in collaboration over 12 to 18 months. The ideas that emerge are then presented to other rooms to find opportunities for collaboration.
In 2023, Festa and the Prime Minister’s Office will publish an extensive toolkit for the 17 Rooms method in Icelandic. With the toolkit, Icelandic corporations and universities will be able to facilitate workshops to deepen their work on and implementation of the SDGs.
Corporate sustainability reporting
An agreement was made in 2022 for Festa to offer education to Icelandic corporations on the upcoming changes in rules and regulations around the EU Taxonomy and Sustainable Finance Disclosures.
Working groups were formed on laws and regulations, sustainability information, and sustainable innovation, and seminars were organized for larger groups based on that work. As a result, Festa published a roadmap that covers the changes in disclosures and methodologies for responsible investments and sustainable operations, for which financial institutions and businesses of all sizes need to prepare.
The roadmap will be followed by ongoing education and awareness raising as the business sector and financial market goes through the upcoming transformations.
The main reason for this large increase is changes in the law on financial statements in 2020 that oblige a certain group of companies to disclose certain sustainability related aspects in their financial statements. Assumably, increased pressure from investors and other stakeholders has also led to more companies providing information on sustainability.
The sustainability reporting assessment will be repeated every two years. The 2022 assessment covers companies’ disclosure of their use of the SDGs both internationally and in Iceland. The results show that 56% of Icelandic companies identify specific goals in their reports. On average, five goals are mentioned per report, but only 6% of the companies report both the positive and negative effects of their activities on SDG progress.
It is noteworthy that Icelandic companies most often link their activities and priorities to SDGs 12 (83%), 5 (83%) and 13 (78%), whereas international companies most often mention SDGs 8 (72%), 13 (63%) and 12 (58 %). Also, the Icelandic companies rarely mention SDGs 1 (0%) and 2 (2%), while international companies mention SDGs 15 (9%) and 2 (22%) the least.
Next steps
Festa works as a bridge builder between and within the public and private sector and focuses on sustainable development through the SDGs, climate change, and corporate social responsibility. Therefore, collaboration with Festa is expected to continue through the common goal of supporting companies and organizations in leading by example, educating, and inspiring a future facing and sustainable economy in Iceland. Festa also has a representative on the Sustainability Council of the cooperation platform Sustainable Iceland.
Toolkits
A toolkit on the implementation of the SDGs for municipalities was published in May 2021. Its purpose is to guide municipalities on how they can contribute to the implementation of the SDGs in Iceland. The toolkit was prepared on behalf of the government’s working group on the SDGs in close cooperation with the Icelandic Association of Local Authorities and the cooperation platform between the state and local authorities on the SDGs.
The toolkit is based on foreign models along with examples from Iceland and lays out five steps that are intended to guide municipalities when working systematically towards the implementation of the SDGs. This is not an exhaustive list of actions for municipalities to implement the SDGs. Instead, it is intended to propose ways and give ideas for practical methods of approaching the goals, to connect with municipal goal setting, and promote sustainable development in daily activities.
Following the publication of the toolkit for municipalities, a toolkit on the implementation of the SDGs for the business sector was released in October 2021. The toolkit provides guidance on how buisnesses can contribute to the SDGs by aligning their activities, programs, and performance measures to the goals.
Festa, center for sustainability, consulted on the toolkit and provided content. As with the municipal toolkit, it is primarily based on foreign models with examples from Iceland.
Children and youth
This chapter is written by the SDG Youth Council
Proposals from the Youth Council for the United Nations’ Sustainable Development Goals
The Youth Council for the United Nations’ Sustainable Development Goals is comprised of 12 young people, aged 13 to 18 years, from all over Iceland. Our purpose is to raise awareness of the Sustainable Development Goals (SDGs) and sustainable development among our peers as well as in society as a whole.
It is now seven years until the SDGs are to be achieved, in order for coming generations to simply have a future. It is long past time to stop postponing the necessary actions, get to work and show that we can trust you to look after our country. As young people our vision is different: we realize that the world is changing and that we need to take action accordingly.
We have worked hard and reached an agreement on issues that are close to our hearts and where we see the best options for change, in view of their importance. These are education, environment and human rights issues in their entirety.
Our government has given us a great opportunity to make our voices heard and spotlight our ideas and we hope they will be followed up on as far as possible. Now that you have our proposals in your hands in written form, we hope you will take our voices seriously.
PROPOSALS TO THE GOVERNMENT OF ICELAND
Environmental and climate issues
These are the ultimate issues, given the situation on earth today.
Work to reduce Icelanders’ ecological footprint According to the conservation NGO Landvernd, the average ecological footprint of each person in Iceland is about seven times higher than what would be ecologically sustainable. Laws and regulations on responsible consumption and production need to be enacted, to encourage the public and businesses to consume less.
Education about food waste and consumerism Educate the public with the aim of having everyone realise the problems arising from immoderate consumption, food waste and unnecessary imports.
Expand green taxation With green taxation, businesses will pay tax according to their consumption and pollution. The green tax should act as an incentive to improve, while the tax revenue should be used to support projects related to environmental issues.
Schools and education
Are very important to us, as a large part of our lives are spent within school walls.
A new, more diverse and flexible national curriculum, developed in consultation with students and teachers The national curriculum for compulsory schools needs to be improved and modernised, both by changing the learning outcomes and making the curriculum more diverse. The national curriculum must be flexible and centred on the individual. It is obsolete and does not reflect our reality today.
Psychological services inside schools Too many children are on waiting lists for psychological services. We would like to have a psychologist working in schools at least once a week. The most important thing is for that person to be qualified and approachable.
Support innovation and independent thinking in students Empower students through instruction and diverse teaching methods that enable them to take informed decisions. Encourage students to submit unconventional and original projects that take into account developments that are occurring in the world.
Equality and human rights
Are what connect us all and give us the opportunity to be ourselves.
Provide help to refugees and immigrants to adapt to a new society in Iceland in the manner and at the pace that suits them best Make the system safer for them and reinforce institutions and organisations to be able to help them. Emphasis also needs to be placed on enabling these new residents to attend school, enjoy leisure pursuits and find employment.
The red bag - menstrual products available in as many places as possible We would like, in co-operation with you, to provide funding to organisations to start this project. Menstrual products are essential products that need to be available, especially if a young person suddenly starts their period and has no possibility of buying such products.
Improve the access of disabled people to society in the broadest sense People with disabilities have the right to education, employment, culture, information and services on an equal basis with others. More resources are needed for accessibility, because insufficient accessibility marginalizes people with disabilities.
“We are the Youth Council for the UN SDGs and we feel anxious about our future”
DEAR ICELANDIC GOVERNMENT,
We heard from young people who have to fight for their rights. We would like to draw attention to the struggles of these youth groups and organizations:
Youth Council of Samtökin 78 LGBTQ people are feeling a backlash, we are fighting to improve education and information on their issues and their struggle.
Youth Council of Þroskahjálp We want inclusive education and employment for disabled people. The Youth Council would also like to point out the long waiting list for apartments and residential facilities for disabled people.
Akureyri Youth Council Among other things, we emphasize better medical services in non-urban areas.
Anti-racists The platform wants to implement comprehensive education about racism and diversity in all compulsory schools in Iceland. It is important that people of colour take care of this instruction.
This chapter is written by the Icelandic UN youth delegate on sustainable development
Since 2020, the National Youth Council of Iceland (LUF) has elected a UN Youth Delegate on sustainable development. The representative is elected to participate in the United Nations’ HLPF on Sustainable Development, supported jointly by LUF, the Icelandic UN Association, and the Prime Minister’s Office. In total, six representatives are elected to work on the issues of human rights, climate change, sustainable development, children and youth, gender equality, and science, education and culture.
The UN Youth Delegate on sustainable development initiated and managed the following summary. A survey was sent to young people between the ages of 15-35 in Iceland and questionnaires were sent out to all LUF member associations. This summary was discussed at the joint forum of the member associations, where everyone had the opportunity to make comments and suggestions. The result of this consultation is summarised in this section.
According to Icelandic youth, the government has failed to guarantee young people a seat at the table when it comes to policy and decision making. Comprehensive youth participation is essential for the SDGs to be implemented. Many societies think of all decisions and regulations many generations into the future. To set a positive precedent, the government must take note of the diverse needs and demands of every generation. Only with this awareness can they effectively lead us towards a better future.
The Icelandic youth urge politicians to legislate the government’s obligations to establish a multidisciplinary and comprehensive national youth policy, as LUF has long demanded. That policy should ensure that the rights, safety, and basic needs of young people are met. Iceland is one of the few countries in the world that has not adopted such a policy despite UN resolution A/RES/50/81 from 1996 in which the UN urged those countries that had not already formalised such a policy to complete the process. In addition, youth-led non-governmental organisations are significantly underfunded, which makes the ability of young people to protect and promote their rights insufficient.
Iceland’s challenge is to take responsibility and act in accordance with its status as a wealthy consumer-intensive country. The Icelandic government must stop doing only what they can get away with and start contributing much more. Young people see the government making promises, suggesting solutions, and undertaking international agreements, but real action is lacking. The Icelandic government must do much more and quickly.
The result of the survey was that most young people in Iceland feel that SDG 13, actions in climate matters, is the most important goal both domestically and internationally. Furthermore, most respondents stated that they think that the Icelandic government is doing poorly or very poorly when it comes to implementing the goal.
The average Icelandic lifestyle is very consumer intensive. Therefore, it is necessary to take measures to reduce consumption. This requires radical social change and transformation of our economic systems where education on sustainability for young people plays a key role. In addition, Iceland must take responsibility for its spillover effects.
Nature must be given more value than our economic system. Costs and subsidies provided by the state must reflect their impact on the environment and promote a just transition. With the current incentives, the economic system has been prioritised at the expense of the climate, food security, nature, and the environment of Iceland and other nations. Iceland has a lot of potential for renewable energy, but its exploitation has irreversible impacts on the landscape and ecosystems. Biodiversity must be protected, energy must be prioritised in favour of socially sustainable projects, and ecological and accessible public transport ensured. Environmental issues are one of the main interests of the younger generations, and young people’s views must be taken seriously in decision-making, as is specifically stipulated in the Kunming-Montreal Global Biodiversity Framework to which Iceland is a party.
Iceland has succeeded in creating good access to education at the primary and secondary school levels. The universities are open, but there is a lack of an adequate support to ensure truly equal access to higher education in Iceland. The support of the Student Loan Fund is too low and young people work more during their studies as compared to neighbouring countries. In addition, students have no right to support if they lose their jobs. The student birth allowance is inadequate and impairs the right of young people to start a family. It is very important to strengthen the mental health of young people with accessible free social work and psychological services. Iceland has achieved good results by increasing funding to preventative health and social measures through research and leisure grants. However, there is a need for better support for young people in marginalised groups in education and in general social participation. Because of how advanced Iceland is on a global scale, Iceland should provide better support to other countries in need through international development cooperation led by young people for young people.
Recommendations to the government
Ensure real participation of and consultation with young people in the implementation of the SDGs. Take Finland as an example where it has become an established practice that young people are represented in all main institutional setups.
Create a comprehensive national youth policy with the active involvement of LUF and increase funding for youth work.
Set more ambitious goals in climate matters. Make a more powerful action plan with a timeline and quantified sub-goals. Execute actions that deliver sufficient emission reductions.
Enhance sustainable and active mobility by, among other things, establishing environmentally friendly public transport that is accessible to all.
Promote less consumption and take more drastic measures to prevent and compensate for the consequences of spillover effects.
Guarantee young people an adequate livelihood during their studies and during parental leave and equal rights in the labour market.
Ensure that mental health aid is accessible and free of charge.
Civil Society Organizations
The government´s working group on the SDGs has collaborated with Almannaheill – an umbrella organization for various civil society organizations in Iceland, on the introduction of and education on the SDGs since 2018. The last agreement made in 2021 aimed to encourage civil society organizations to integrate the SDGs into their daily activities. It entailed several educational meetings and workshops hosted by Almannaheill and the Icelandic UN Association in collaboration with the working group, followed by an awareness survey among Almannaheill’s member organizations.
The main results from this survey showed that, when asked if the organizations had integrated any of the SDGs, 50% of them answered yes, 30% where in prepreation, 15% said no and 5% said that they did not plan to. Additionally, the survey showed that the organizations answered that 45% of them considered themselves not in need of assistance with SDG integration, 30% said they might need assistance and 25% said they needed assistance.
With the introduction of Sustainable Iceland and the Sustainability Council, civil society organizations in Iceland have been given a platform to influence the government’s policy on sustainable development and the implementation of the SDGs. Through the Sustainability Council, the organizations will also play an important role in monitoring the progress of Iceland’s national policy on sustainable development and the regular update of the policy. The council includes representatives from 23 civil society organizations. In addition, all interested organizations were invited to participate in Iceland’s VNR. Their review can be found alongside the government’s review in chapter seven of the report.
As mentioned in chapter four, on civil society participation in the Icelandic VNR, the UN Association in Iceland was tasked with carrying out the civil society’s review of all 17 SDGs. The initiative was well received among the organizations and eventually 55 organizations took part in the writing of the review (see chapter seven). The group of organizations that came together are now more familiar with the SDGs and their interests span all the 17 goals. Therefore, there is a strong will to continue regular consultation and dialogue about the progress of the SDGs with civil society organisations.
Next steps
In the upcoming months, it will be elaborated in more detail how consultation with civil society organizations will take place at the level of the newly established Sustainable Iceland. It is expected that various thematic meetings will be regularly held with the Sustainability Council´s representatives and that measures will be taken to ensure that dialogue and consultation on the progress of the SDGs will continue be at the forefront of Sustainable Iceland’s work alongside the implementation of a national policy on sustainable development.
Academia
From the beginning, the government’s working group on the SDGs sought assistance from the Sustainability Institute at the University of Iceland for both data evaluation and advice on how to prioritize the SDG targets in Iceland. The two reports from the institute were invaluable for the work that ensued and came together in the first status report and 65 priority targets published in 2018.
Collaboration between the working group and the University of Iceland (UI) continued as the university committed to incorporate the SDGs and sustainability in its strategy for 2021-2026. As part of that commitment, UI started in 2019 to map the work of its academics with the goals and organized a series of events in collaboration with government’s working group. The aim of the series was to address one SDG in each event and bring outstanding academics from all academic fields forward to dissect and discuss the goals and the problems associated with them from as many angles as possible. Three events took place at the university, on SDG 1, SDG 3 and SDG 9, where the Prime Minister, Minister of Tourism, Industry and Innovation, and the Governor of the Central Bank of Iceland joined various academics in fruitful discussions. Unfortunately, when COVID-19 hit in early 2020, the series was halted.
The University of Iceland, led by the Sustainability Institute, recently published its first sustainability report with the results of an extensive mapping of its work on the SDGs in five main areas: research, teaching and learning, community outreach and partnerships, operations, and student initiatives. Furthermore, based on the goals of its strategy for 2021-2026 and its work programme on sustainability in teaching, research and university management, UI has defined four focus areas for its next steps towards sustainability:
FOCUS 1: Raise awareness and understanding of sustainability through presentations, workshops, sustainability research, and education dashboards.
FOCUS 2: Focus on sustainability in teaching and learning by increasing the number of courses and support for teachers. Make study programmes and courses related to sustainability available for students for all disciplines.
FOCUS 3: Work towards making UI carbon neutral by mapping emissions and introducing countermeasures.
FOCUS 4: Evaluate whether sustainability and interdisciplinarity should be considered when allocating grants from UI’s competitive funds.
Next steps
As reported later in this report (see page 37), the Sustainability Institute carried out an assessment of Iceland’s spillover effects for the Prime Minister’s Office earlier in 2023. The findings and recommendations from that research will be utilized by Sustainable Iceland to inform ongoing policy work to create a national strategy for sustainable development, as well as to guide future research and data gathering efforts. The Prime Minister’s Office and the University of Iceland will continue to collaborate on the SDGs and research Iceland’s spillover effects. This partnership will help advance the country’s efforts towards achieving Sustainable Development Goals domestically and internationally.
To strengthen the academic basis of its work, Sustainable Iceland will then invite members of all universities in Iceland and the National Council for Research and Innovation to nominate members to be part of an expert advisory group in the coming months. The role of this group will be to give independent advice to Sustainable Iceland and the Sustainability Council on topics related to sustainable development. The group will also be asked to review strategy documents and action plans. Knowledge and expertise in this area is developing fast, and it is important for Sustainable Iceland to have access to cutting edge research at any given time.
Integration of the Sustainable Development Goals in national frameworks
National policies and strategies
Fiscal strategy
In the past years, the government’s fiscal strategy has emphasised linking the SDGs to the targets set for various policy areas. The fiscal strategy is based on the state’s financial policy and the basic values and conditions as defined in the Act on Public Finances. It includes a detailed elaboration on the targets set out in the strategy, further expands the objectives of the financial policy, and analyses how these are to be achieved from one year to the next. The purpose of the fiscal strategy is to elaborate on the government’s revenue and expenditure targets and their development. The strategy shows the budget appropriations for state activities in 35 areas of operation for the next five years. Each area covers tasks, such as, the activities of the courts or universities, and the fiscal strategy outlines the basis for clear prioritisation of expenditures and effective preparation of measures to achieve the objectives of financial policy.
Linking SDG targets and the national wellbeing indicators to the state’s objectives for the various areas of operation offers an opportunity to map how specific targets are being implemented and, similarly, to estimate how much funding is allocated to the implementation of the goals at any given time. Doing so also provides the opportunity to map more precisely the connections between the goals in Iceland to anticipate any compromises that may be needed in policy formulation for the goals. Cost-benefit analyses of specific actions with respect to other objectives can be useful in drafting policy to maximise synergies and possible benefits accruing from certain funding. The same goes for possible opportunity costs.
Creating better links between the SDGs and the fiscal strategy and further refine the methodology has been on the government’s agenda for a while. A software solution for drafting the fiscal strategy and its links to the SDGs is being developed and will be implemented soon. This solution will provide an overview of the SDGs for policy experts to increase the coordination of strategies and programmes in different areas of operation. These goals will be pursued in close cooperation with the National Sustainability Council.
Sustainable financing
The Ministry of Finance and Economic Affairs has issued a Sovereign Sustainable Financing Framework along with an annex on financing for gender equality. This enables the government to issue sustainable, green, blue, social, and/or gender bonds in Iceland and abroad, although no such bonds have been issued to date.
Bonds issued under this sustainable financing framework and annex provide funding for certain defined treasury expenditures that fall into four categories: green projects (climate and environmental issues), blue projects (climate and environmental issues relating to the ocean, seafood, and related sectors), social projects, and gender projects. All project categories are considered to promote one or more sustainable development goal. Taken together, they cover all 17 SDGs, making this a very comprehensive sustainable financing framework.
Issuance of sustainable bonds requires rigorous reporting of the allocation of proceeds and impact of financing. To be able to account for the impact of financed projects, impact indicators have been defined, and whenever possible, the SDG indicators are used in addition to other relevant indicators. Allocation reports with clear links between different project categories and specific SDGs will facilitate better tracking of financing towards individual goals in the future.
Foreign policy, trade and international development cooperation
Iceland is a strong proponent of international law and the multilateral system, both of which underpin Agenda 2030 and the Sustainable Development Goals. The rule of law, fundamental freedoms, human rights, and democracy are key foreign policy areas for Iceland, and gender equality, the empowerment of women, and LGBTI rights feature prominently in Iceland’s participation in the work of international organizations.
Sustainability is taking a higher position on the agenda for foreign relations, including trade. Iceland is a member of the European Free Trade Association (EFTA), which jointly concludes free trade agreements with partner countries. The EFTA States acknowledge the need for enhanced policy coherence at the national and international levels in order to harness the potential for international trade to contribute to the promotion of sustainable development. Since 2010, the EFTA countries have systematically included model provisions on free trade and sustainable development in all negotiations for new free trade agreements and in updating existing agreements. The provisions include new articles on equal opportunities for all, trade and climate change, sustainable use of forests, trade and biodiversity, trade and sustainable use of fish stock and aquaculture, and responsible business practices. Furthermore, Iceland is among countries leading ongoing discussions on gender equality and sustainability in international trade within the WTO. Iceland is also participating in negotiations on the Agreement on Climate Change, Trade and Sustainability (ACCTS), an agreement that will use trade rules to tackle climate change and other environmental issues.
International development cooperation is an integral part of Iceland’s foreign policy. It is based on the Policy for International Development Cooperation, 2019-2023, which is currently being revised. The Minister for Foreign Affairs will foreseeably present the new policy for the period 2024-2028 to Parliament in the autumn of 2023. The policy is grounded in the SDGs and Agenda 2030, with a focus on sustainable development to eradicate poverty and hunger and to promote economic and social development, to promote and preserve peacebuilding and peacekeeping, and to provide humanitarian aid and emergency relief where needed. Three cross-cutting issues have been identified: human rights; gender equality, which is also a priority in itself; and environmental issues. In multilateral development cooperation, Iceland has identified four key partners: the World Bank, UNICEF, UN Women, and UNFPA and two, soon to be three partner countries: Malawi, Uganda, and Sierra Leone.
The Icelandic government has solid cooperation with Icelandic civil society organisations on, inter alia, the basis of framework agreements on development cooperation and humanitarian assistance. Cooperation with the private sector is based on the SDG fund that encourages the Icelandic private sector to invest in value and job creating projects and to support the development of the private sector in the Global South to attain the SDGs. The GRÓ Centre for Capacity Development, Sustainability and Societal Change coordinates the work of the four training programmes in Iceland in areas where Iceland has particular expertise: fisheries, geothermal energy, land restoration and gender equality.
Environment, sustainable use of resources, and actions to adapt to and mitigate the impact of climate change have gained increased importance in Iceland’s international development cooperation. Iceland has increased its support to and cooperation with multilateral organisations on climate issues and integrated climate issues into bilateral programmes, in line with the priorities of the partner countries’ governments. In April 2023, the OECD’s Development Assistance Committee (DAC) concluded a peer review on Iceland’s international development cooperation in which Iceland was commended for its strategic and focused approach to development cooperation.
Other strategies
Most government policies and strategies that have been developed since the SDGs came into force either take the goals into account or have a clear focus on sustainable development in general.
Below, several strategies and policies that cover all of the SDGs are combined. This showcases how SDG implementation is taking place in a comprehensive manner throughout the Icelandic government. However, the implementation itself mostly takes place within the responsible ministries.
Government policies are either set out in legislation or in strategic plans. In most cases, the strategic plan is a tool for the government to adhere to the legislation and to achieve its political goals. The number of active strategics plans in Iceland varies between 80-120 at any given time. Most strategies are ad hoc, but a number of them are developed in accordance with legislation that states that a certain strategy should be developed regularly.
Strong emphasis has been placed on integrating the SDGs, as well as the wellbeing priorities and wellbeing indicators, into the government’s five-year fiscal strategy. Linking SDG targets directly to specific government policy objectives offers an opportunity to map the means of implementation of specific targets, estimate funding allocation for the SDGs at any given time, and anticipate potential synergies and trade-offs. Additionally, efforts are being made to actively involve local authorities in their important role in implementing the 2030 Agenda.
Iceland has implemented several strategies that aim to promote sustainable development. One such strategy is Iceland’s Climate Strategy 2018-2030, which aims to reduce the country’s greenhouse gas emissions by 40% by 2030 as compared to 1990 levels. The strategy includes measures to reduce emissions from transportation, industry, and buildings, along with increasing the use of renewable energy and carbon sequestration.
Another strategy is the National Strategy on the Circular Economy 2021-2025, which aims to transition Iceland towards a circular economy where waste is minimized and resources are used more efficiently. The strategy includes measures to promote sustainable production and consumption, improve waste management, and increase recycling and reuse. These strategies are essential for Iceland to promote sustainable development and reduce its impact on the environment.
Additionally, Iceland’s National Action Plan for the Conservation and Sustainable Use of Biodiversity 2021-2030 aims to halt the loss of biodiversity in Iceland and promote the sustainable use of natural resources. The plan includes measures to protect habitats, species, and ecosystems, along with promoting sustainable land use and fishing practices. Iceland’s Arctic Policy is another strategy that aims to promote sustainable development in the Arctic region. The policy includes measures to protect the environment, promote sustainable resource use, and improve infrastructure and connectivity in the region.
Other strategies linked to specific SDGs are below:
SDG1:
Policy on Public Defence and Security
SDG2:
Food Policy
The Agricultural Policy
SDG3:
Health Policy until 2030
Plan of Action on Maternity Services until 2030
Public Health Policy
Road Safety Plan 2023-2037
National Air Quality Plan of Iceland 2018-2029
SDG4:
Education Strategy 2021-2030
SDG5:
Strategy for LGBTQ+ People 2022–2025
Strategic Plan for Gender Equality
Strategy for the Prevention of Sexual and Gender-Based Violence and Harassment among Children and Young People
Action Plan against Violence and its Consequences
SDG6:
River Basin Management Plan 2022-2027
SDG7:
Sustainable Energy Future - Energy Policy until 2050
SDG8:
Cluster Strategy for Iceland
Leading in sustainable development - Icelandic Tourism 2030
SDG9:
Science and Technology policy
Design and Architecture Policy until 2030
Cluster Strategy for Iceland • The Innovation Policy • Action Plan on the Fourth Industrial Revolution
Iceland’s Policy on Artificial Intelligence
SDG10:
Parliamentary Resolution on Action Plan on issues of Disabled People
Parliamentary Resolution on Action Plan on issues of immigrants 2022-2025
SDG11:
Regional Plan for 2022-2026 • Cultural heritage - Strategy for preservation and accessibility
National Planning Strategy 2015-2026
Policy on Public Defence and Security
National Air Quality Plan of Iceland 2018-2029
Policy on Settlement Patterns and Settlement Distribution
Regional Action Plans
Housing Strategy
SDG12:
Policy on Sustainable Procurement
Towards a Circular Economy
Together Against Waste – Waste Prevention Programme 2016-2027
Action plan on Plastic Issues
Education Strategy 2021-2030
Food Procurement Policy for Government Entities
SDG13:
Regional Plan for 2022-2026
The Climate Strategy of Government Offices
Climate Action Plan – Iceland’s main instrument to reach its commitment in the Paris Agreement and its emissions reduction goals for 2030
National Adaptation Strategy – In View of the Climate Crisis: Iceland’s Strategy on Adaptation to Climate Change
Policy on Public Defence and Security
SDG14:
Action plan on Plastic Issues
SDG15:
Regional Plan for 2022-2026
Land & Life – National Restoration and Forestry Plan
SDG16:
Strategy for the Prevention of Sexual and Gender-Based Violence and Harassment among Children and Young People
Child-friendly Iceland - Implementation of the United Nations Convention on the Rights of the Child
Action Plan against Violence and its Consequences
Action Plan against Human Trafficking and Other Forms of Exploitation
Action Plan against Money Laundering and Terrorist Financing 2021-2023
SDG17:
Development Cooperation Strategy
Assessment on Iceland’s spillover effects
This chapter is written by the Sustainability Institute at the University of Iceland
Debate and discussion about the spillover effects of countries in parallel with their implementation of the SDGs is ever increasing, and for good reason. Prosperous countries that rank high amongst other countries on lists that measure their success in implementing the SDGs have, in many ways, achieved good results at the expense of other countries or regions. The Sustainable Development Report 2022 publishes a spillover ranking of countries based on three dimensions: 1) environmental and social spillovers embodied into trade, 2) spillovers related to economic and financial flows, and 3) peacekeeping and security spillovers. It is clear that the SDGs will not be realized on a global scale without the concerted efforts of all the UN member states. Therefore, it is important that indicators that measure a country’s spillover effects be developed and coordinated further so that those countries with the highest spillover can be held accountable.
Iceland ranks low on the International Spillover Index. Those results resulted in the Prime Minister’s Office requested that the Sustainability Institute at the University of Iceland would carry out an assessment of the of Iceland’s spillover due to the implementation of the SDGs. The assessment contains a general summary of the spillover effects, including the development of the concept and the state of knowledge on it domestically and abroad. It also contains a status assessment of Iceland’s spillover effects that looks at the most damaging effects and how they can be measured, along with recommendations for next steps. The main findings of the audit written by the Sustainability Institute are as follows:
Spillover effects are the positive or negative impacts that one country’s actions can have on other countries’ ability to achieve the SDGs. The concept is complex and has evolved significantly since the emergence of the first spillover indicators. Comprehensive efforts are underway to assess, measure, and address spillover effects in order to contribute positively to global efforts towards sustainable development. Spillover effects can be categorized into three dimensions:
Environmental and social spillover effects embodied into trade
Spillovers related to economic and financial flows
Peacekeeping and security spillovers
Accurate and comprehensive data, as well as internationally agreed-upon analytical methods and models, are vital for measuring spillover effects. Unfortunately, due to a lack of data, international spillovers have not been fully measured to date.
While the Nordic countries, including Iceland, have made significant progress in implementing the SDGs domestically, they have also been found to generate significant negative spillover effects. According to the International Spillover Index, Iceland ranks 158th out of the 163 states with available data, indicating a high level of negative spillover effects. Iceland has the lowest ranking among the Nordic countries. It is insufficient for states to focus solely on implementing the SDGs domestically; they must also actively work to mitigate negative spillovers that may hinder the opportunities of developing nations in achieving the SDGs domestically. Most states are in the early stages of acknowledging and mapping their spillover effects. However, indirect efforts have been made through legislation and policy to counteract negative spillovers. It is crucial that spillover effects are given due consideration, and decisive actions are taken to prevent their adverse consequences.
Iceland’s negative spillover effects are, particularly in relation to the consumption of goods and its large number of imports. Recent studies indicate that the carbon footprint of Icelanders is amongst the highest in the world when all imported goods are considered. Consulted experts agree that significant work lies ahead for Icelandic authorities in addressing and combating these negative spillover effects. The main objectives can be categorized as follows:
Establish a clear vision, goals, and action plan
Enhance understanding of Iceland’s spillover effects
Promote a circular economy and reduce consumption
Increase Iceland’s contribution to international development cooperation
Four priority actions are proposed:
Present a clear vision, goals, and funded action plan
Establish a consultation platform for data collection and measurements related to Iceland’s spillover effects
Increase research and data collection efforts
Implement green incentives, green taxes, and a strategy for green public procurement
The results of the assessment will be used in the formulation of the national strategy on sustainable development, which is expected to be ready by the end of 2023 and s submitted to Parliament at the beginning of 2024. Cooperation with the Sustainability Institute at the University of Iceland is expected to continue for ongoing research on Iceland’s spillover effects, and the effects will, in some form, be included in the national indicators that will be defined in parallel with the national strategy on sustainable development. Since they will be domestic measures of Iceland’s success towards sustainable development, it is imperative that they also reflect Iceland’s influence beyond its borders.
Integration of the economic, social and environmental dimensions and leaving no one behind
Well-being Economy Governments (WEGo)
The philosophy of assessing the quality of life and well-being of a population goes beyond using economic measures such as GDP to emphasise the common denominator of well-being. The Icelandic government has prioritized this policy issue by participating in international cooperation and by developing a more robust data collection and measurement system. This involves collaborating with governments countries such as Finland, Scotland, Wales, Canada, and New Zealand to form the Wellbeing Economy Governments (WEGo), which places emphasis on monitoring and measuring non-economic factors that contribute to sustainability in the participating countries and globally. However, more data is needed on such non-economic measures and utilizing existing data remains a challenge.
It is important to consider factors beyond economics, such as, environmental and social factors that affect people’s daily lives, including health, housing, employment, education, income, and air and water quality, among others. Compiling measures that provide a comprehensive overview of the prosperity and quality of life in Iceland is essential. Many countries and international organizations have already prepared collections of measures to focus on the main pillars of sustainable development, although they do not provide a detailed description of all aspects of prosperity.
National wellbeing indicators have been developed through a collaboration among the Prime Minister’s Office, Statistics Iceland, and other parties. These indicators are grouped into three sub-components: social indicators, economic metrics, and environmental metrics, with 40 indicators in total, including one that was added in 2022 to report domestic violence. These indicators are further divided into subcategories and specific measurements. This set of measures is the first set of national indicators that shed light on both prosperity and sustainable development in Iceland, although it is important to continue developing them with measurements in key issue for international comparison.
From the changes observed in the last five years, 22 prosperity indicators have developed positively, seven remained the same, and five have developed negatively. Six indicators are still under construction, but they are being developed according to the standard of living survey from Statistics Iceland. Since May 2022, there has been an emphasis on updating prosperity indicators and publishing the status of the measures that have been in progress. By the end of 2023, it is expected that the status of all metrics will have been updated.
Assessment on the impact of proposed bills
When considering proposed bills, the government must consider their impact on certain public interests, both significant and minor. This is according to the regulations for the preparation and handling of government bills, in Icelandic called Mat á áhrifum lagasetningar. However, the regulations do not specify which interests to consider. This grants the relevant ministries some flexibility to determine which particular public interest should be given priority. Generally, interests such as environmental protection and gender equality are considered in both legislation and its enactment, as indicated in the government’s checklist.
An evaluation of the environmental impact of a bill may involve factors including the effects on air, soil, water, climate, flora and fauna, human health, or sustainable use of natural resources. If a bill has a negative impact on any of these factors or poses a risk to them, it is necessary to explain how the adverse effects will be prevented or mitigated. The methods employed for the assessment should be described along with any underlying assumptions and uncertainties.
To assess the impact on gender equality, the Prime Minister’s Office has an equality impact assessment available on its website. It is worth noting that the above factors are not comprehensive. If a bill significantly affects other public interests, such as urban issues or cultural heritage protection, it should be acknowledged and evaluated accordingly.
Gender budgeting
Gender budgeting is a tool for analysing the impact of budget provisions on different groups, including women, men, and marginalized groups. Iceland implemented gender budgeting in 2009, and it has been mandatory at the state level since 2016. The work is framed by a five-year plan and overseen by a steering committee on gender budgeting. A gender analysis of government expenditure areas is conducted annually to increase understanding of the current situation. In drafting its five-year fiscal strategy and annual budget, the government considers the impact of different options on different groups, and ministries account for the gender impact of their budget proposals. Gender disaggregated statistical data is a prerequisite for all gender analysis.
Gender budgeting is used for gender mainstreaming and contributes to economic management and informed decision making, leading to a prosperous and equitable society. It involves analysing the impact of budget provisions on different groups, taking into account their socio-economic status, age, origin, disability, and gender identities. The implementation is overseen by a steering committee and working groups in each ministry.
The gender budgeting process in Iceland includes a gender analysis of government expenditure areas, highlighting challenges and opportunities for gender equality and assessing the overall gender impact of the annual budget. The strategic planning for each expenditure area accounts for gender considerations and progress is reported in each ministry’s annual report. To improve the availability of gender disaggregated data, a working group has been formed to facilitate standardization of its collection and use among public entities. Training, knowledge sharing, and changing the mindset of those involved in budget preparation have been important components in implementing gender budgeting in Iceland.
Institutional mechanisms
Sustainable Iceland
In 2017, the government constituted a working group with representatives from the Prime Mininter’s Office, four other ministries, and Statistics Iceland. Its role was to manage the analysis, implementation, and promotion of the UN’s Sustainable Development Goals. To ensure the involvement of ministries not represented in the working group, a contact group was also formed, comprised of representatives of the other ministries and an observer from the Association of Local Authorities in Iceland.
Early on, it was clear that more cooperation was needed along with formal participation of all ministries and key stakeholders. In 2018, the working group was reorganised to consist of representatives from all ministries, the Association of Local Authorities in Iceland, Statistics Iceland, and the Parliament, along with observers from the Youth Council for the SDGs and the UN Association in Iceland. The representative from the Prime Minister’s Office was chairman of the group and the Ministry for Foreign Affairs representative was vice-chairman.
The new arrangement was more successful and resulted in a number of big projects, including the first VNR in 2019, a website and project portal with an online dashboard, toolboxes for municipalities and companies in Iceland, and a number of awareness raising initiatives. The cooperation between the government and local authorities was strengthened even further by the establishment of a cooperation platform between the two in 2020.
However, it was clear that more resources were needed for the committee to create a more holistic and coordinated implementation of the SDGs at all levels of society. A national strategy on sustainable development was needed along with more efforts and resources for statistics, a whole government coordination, and stakeholder dialogue.
The coalition agreement of the government that was formed in 2021 emphasised sustainable development, well-being, and a just transition. The formation and adoption of a national strategy on sustainable development in line with the SDGs was also part of the coalition agreement. To fulfil those priorities, a platform called Sustainable Iceland was established in December 2022. It includes a new National Council on Sustainable Development, a new government steering committee, and a team of specialists from the Prime Minister’s Office, The Ministry for Foreign Affairs, Statistics Iceland, and political aides.
The establishment of Sustainable Iceland opens up the possibility of a much more inclusive dialogue on the integration of the SDGs to harmonize workstreams and to boost more inter-ministerial cooperation. It allows for a multi-sectoral involvement and shared responsibility for the 2030 Agenda in Iceland. The aim is also to develop indicators to monitor the progress of the policy and create more data on sustainable development in Iceland.
The two initial tasks of Sustainable Iceland were the preparation of this VNR and the formulation of a national strategy on sustainable development. The strategy process was split into three parts. First, a green paper was developed outlining the current status and evaluating the main challenges at that time. This green paper was created in close cooperation with all members of the Sustainability Council. The final draft of the green paper was published for public feedback on 13 April 2023. Following that publication, the Prime Minister held eight meetings around the country and online to present the work and to solicit feedback from the public. The agenda of the meetings also included discussions on the next steps and ideas for action.
The second step of the process is a formulation of a white paper, which is a draft of a vision and goals for the future and a suggested action plan on how to reach those. The white paper will be created in cooperation with the members of the Sustainability Council and published for public feedback.
The aim is to present a strategy proposal, the third step of the process, to the ministers of the government in December 2023.
National strategy for sustainable development
Monitoring and review mechanisms
Statistics Iceland is responsible for producing and disseminating statistics on Iceland’s progress towards the Sustainable Development Goals (SDGs). The progress towards the seventeen goals and their 169 targets is monitored using 231 unique indicators that have been developed by the UN. The indicators are regularly reviewed and refined by the UN IAEG SDGs expert group, as the indicators need to be appropriate for the 169 targets internationally.
Statistics Iceland adapts the UN indicators to the Icelandic context using available data and reports the statistics using a national reporting platform (NRP), a website developed by OpenSDG. The coverage, i.e., the number of indicators that has been reported, has changed dramatically since the last VNR report in 2019. In 2023, the coverage of reported indicators is 70%, as compared to only 30% in 2019. For more statistics on the coverage within each goal or on the progress per target, see the NRP at Statistics Iceland.
Progress towards the SDGs depends on cooperation between different parties. At the national level, Statistics Iceland has a representative in the national SDG working group and a seat in the newly established cooperation platform Sustainable Iceland. Moreover, Statistics Iceland has collaborated with local authorities and the state by providing guidance in developing SDG indicators at the municipal level. At an international level, Statistics Iceland participates in the Nordic SDG collaboration platform, a group of SDG specialists from the statistical offices in the Nordic countries.
The UN indicators are global indicators. However, regions, countries, and municipalities are free to adopt their own set of indicators. As a results, international organizations, such as, Eurostat, the OECD, SDSN together with Bertelsmann Stiftung, have defined their own SDG targets and indicators, to either better capture the progress towards the SDGs for smaller regions or to improve data coverage by using different types of indicators. Statistics Iceland monitors these indicators along with monitoring the official list of indicators from the UN.
Currently, there are no national SDG indicators available in Iceland, which makes monitoring national and local progress towards the SDGs difficult. In the future, it would be highly beneficial to have indicators at a national level that are guided by the global SDGs but take national and local circumstances into account.
Progress between VNRs
As previously mentioned, substantial progress has been made in monitoring and reporting on the SDG indicators since Iceland’s last VNR in 2019, with an increase from 70 to 170 indicators reported by Statistics Iceland from 2019 to 2023.
An assessment of the 70 indicators from 2019 shows some positive changes. The proportion of the population living below the national poverty line decreased (SDG 1), the annual growth rate (%) of GDP per capita has increased (SDG 8), and more funds are allocated to research and development (SDG 9). In terms of health and well-being, fewer people smoke daily in 2023 as compared to 2019, and the number of infectious diseases has fallen between the years. Morover, maternal and neonatal mortality rates have decreased, and the birth rate among adolecent girls is much lower than before (SDG 3). Iceland continues to strive towards providing quality education (SDG 4), ensuring gender equality (SDG 5), building a peaceful and inclusive society (SDG 16), and partnering with others in order to achieve the targets (SDG 10, 17). The share of renewable energy of total final energy consumption has increased from 70% to 90% (SDG 7), and over 95% of Icelanders have good access to public transportation (SDG 11). The coverage of protected areas in relation to marine areas has expanded (SDG 14), but the forest area as a proportion of total land area remains the same (SDG 15).
However, Iceland still faces some challenges in achieving the SDGs. The proportion of local species classified as being at risk of extinction has not changed since 2019, and two species out of seven are still considered at risk of extinction (SDG 2). Although all Icelanders have access to clean water and safely managed sanitation services, much work still remains in terms of wastewater treatment, as only 3% of wastewater receives second-stage treatment (SDG 6). The unemployment rate has increased from 2.7% in 2018 to 6% in 2023, and income from tourism, Iceland’s main contributor to GDP, decreased due to COVID-19 but is slowly recovering (SDG 8). The rate of recycling household waste has then decreased from 33% in 2016 to 26% in 2020 (SDG 12).
SDG 13 was not reported on in the 2019 VNR‘s statistical annex because no data was available at that time. According to 2023 data, three out of thirteen indicators in SDG 13 are now reported, and Iceland has reduced its greenhouse gas emissions to some extent, but much work is still needed for Iceland to achieve its goal of being carbon neutral by 2040.
Regional cooperation on sustainability
Iceland emphasises regional cooperation with neighbouring countries on both sides of the Atlantic Ocean and in the north. The aim of this cooperation is to ensure stability and promote cooperation on common issues in the region on sustainable development, among other things.
The five Nordic countries of Denmark, Finland, Norway, Iceland, and Sweden and the self-governing countries of Greenland, the Faroe Islands and Åland work closely together at most levels of politics and government. The strength of Nordic cooperation lies in our common values and similar social structures. In August 2019, the Nordic prime ministers adopted a new Nordic vision for 2030 to make the Nordic region the most sustainable and integrated region in the world by 2030.
The Council of Europe is the leading human rights organisation in Europe. Each of the 46 member states is a party to the European Convention on Human Rights (ECHR), which is designed to safeguard human rights, democracy, and the rule of law and has been the cornerstone of human rights law across the continent for over seventy years. Iceland held the presidency of the Committee of Ministers of the Council of Europe from November 2022 until May 2023, focusing on the council’s core values of human rights, democracy, and the rule of law along with the environment, equality, and children and youth. The fourth summit of the Heads of State and Government of the Council of Europe was held in Reykjavík on 16-17 May 2023 and focused on the situation on the continent following Russia’s invasion of Ukraine.
The Arctic Council has been the most important forum for cooperation on Arctic issues for over a quarter century. Iceland chaired the Arctic Council in 2019-2021, under the banner of Together towards a sustainable Arctic, where emphasis was placed on the sea, climate and renewable energy, and people and communities in the Arctic. Russia’s war in Ukraine has negatively impacted the work of the council.
In the Council of the Baltic Sea States, collaboration is carried out on diverse issues, including sustainable development, child protection, human trafficking, innovation, and political cooperation.
