7. Progress on goals and targets

The following assessment presents Iceland’s progress and current situation for each SDG and its associated targets. The government assessment is a result of evaluations made by specialists from all ministries. The information provided in this report is pulled from an online dashboard
where everyone can find detailed information about the government’s actions towards each SDG. Furthermore, the report offers a summary of the main achievements Iceland has made towards each SDG, an overview of remaining challenges, and next steps for implementation. In addition,
the report provides a brief overview of Iceland’s international cooperation within each SDG.

The civil society assessment was made by various Icelandic civil society actors. The United Nations Association in Iceland was tasked with carrying out the assessment. In total, 55 organisations participated.

In the government assessment, the progress towards each SDG target is assessed using the following visuals:

In the civil society assessment, the progress towards each of the 17 SDG’s is assessed using the following visuals:

SDG1

Iceland is a developed welfare state, and the standard of living of Icelandic citizens is generally considered to be good. Leaving no one behind remains the guiding light for the ongoing work of fully eradicating poverty in Iceland.

Main achievements

According to Statistics Iceland and the Welfare Watch, the percentage of those living with a significant lack of economic resources has decreased in recent years (0.8% in 2021 vs. 2.5% in 2016). The same can be said about the percentage of individuals who are living with a lack of material quality (3.7% in 2021 and 6.1% in 2016) and the proportion of individuals living in households that are at risk of poverty (8.9% in 2021 and 10.3% in 2017).

During the COVID-19 pandemic, the government emphasised ensuring people’s incomes and providing support and services to the most vulnerable groups in society. Despite the positive results from those measures, Nordic reports suggest that the pandemic had a negative impact on social equality in the region and that its consequences were greater on vulnerable groups. Therefore, the Icelandic government has continued to apply specific measures in support of those groups.

Main challenges

The groups of people who are living with a lack of economic resources in Iceland need further support to reduce the possibility of their families’ experiencing poverty when they should have equal opportunities in terms of education, development and increased social mobility.

International cooperation

The aim of Iceland’s Policy for International Development Cooperation 2019-2023 is to fight poverty and hunger and to work towards increased prosperity and equality. Iceland works towards these objectives in both bilateral and multilateral development cooperation, with a special emphasis on cooperating with poor and unstable countries and improving the livelihoods of those with the poorest living conditions.

Iceland strongly emphasises supporting the least developed countries and reaching those furthest behind. Iceland continues to support the UN’s goal of providing at least 0.2% of GNI to the least developed countries.

Next steps

• Complete revision of the disability pension system to reduce poverty and give people with reduced working capacity the opportunity to work in accordance with their own abilities.
• A framework agreement between the state and the local authorities on actions in the housing market was set for the years 2023-2032 to meet the housing needs of different communities.

Iceland has one of the lowest poverty rates in the world according to the OECD. Nonetheless, poverty exists in Iceland, and economic hardships for marginalised groups are expected to increase in the short-term due to the economic impact of COVID-19 and the war in Ukraine. According to the Welfare watch in 2021, 0.8% of the population lives in extreme poverty.

The cost of housing is very high, and this is one of the main causes of poverty. The limited availability of social housing and few housing options are also a challenge. People have difficulties obtaining long-term housing, and the situation for tenants is dire. This is especially true for immigrants and people with disabilities. Housing benefits vary between municipalities, creating another layer of inequality. A low income, especially among people with disabilities, immigrants, and recipients of social assistance (incl. asylum seekers), keeps people trapped in a vicious cycle of poverty, especially when coupled with housing prices. The possibilities of social mobility for these groups are very limited. They cannot afford anything to go wrong without the risk of becoming further marginalised. A recent report from UNICEF Iceland shows that one in four children in Iceland lacks recreational activities, which points to unequal opportunities for children.

Homelessness is also an issue, although still limited in scale. Existing data is not detailed or descriptive enough. For example, data is often missing on people who live in business premises and people in rehabilitation accommodation.

The limitations that follow government policies on immigration are also worth highlighting, as they have multiple impacts on people’s lives, such as, child rights, poverty, housing, and disability pension and, if anything, entrench marginalisation. Much more should be done to facilitate
  inclusion and access into Icelandic society and celebrate the opportunities that diversity brings.

Iceland should make sure that poverty is not ignored. Access to school meals and recreational activities should be ensured for all children, especially those living in poverty. The government should put an end to excessive reductions on disability pensions, which result in putting people below the minimum income threshold. Finally, special care should be taken to alleviate the position of people who suffer under multiple marginalisation and discrimination due to, for example, disability and immigration status. The full economic impact of COVID-19 and the Ukrainian war will not emerge immediately. It is important to support families in the long term and not just through temporary measures. This is a lesson that emerged in the aftermath of the 2008-2009 economic collapse and is important to keep in mind now that inflation is increasing after COVID-19.

The biggest impact Iceland can make to reach the SDG 1 globally is to enhance efforts for development cooperation with a clear focus on the poorest countries. Iceland’s cooperation with Sierra Leone, which is a recent addition to Iceland’s bilateral development cooperation programme, is commendable.

Recommendations to the Government

Iceland should:

• set policies on immigration that reduce the marginalisation and the poverty trap that the current system risks creating.
• ensure that these policies celebrate the opportunities that diversity brings to Iceland.
• increase access to affordable, quality housing for people with a low income, including people with disabilities.
• regulate the rental market by focusing on the rights and needs of marginalised groups.
• eliminate existing hindrances for non-native speakers of Icelandic that block social access and mobility.
• remove limitations that are set by requirements for debit cards, such as, a social security number and a smart phone, as they directly affect the most marginalised.
• improve services and benefit schemes for people with disabilities to enhance their equality and participation in society.
• ensure that 0.2% of GNI always goes to the world’s poorest countries and reach the 0.7% GNI target from the UN for developed countries in international development cooperation.

SDG2

Iceland has an ample supply of nutritious food. Authorities aim to ensure access for all to safe and healthy food choices of high quality as well as to inspire sustainable practices in local food production.

Main achievements

Iceland’s first food strategy and action plan were published in 2020. It aims to promote increased value creation in food production, ensure food safety, and increase people’s well-being in harmony with the environment and nature.

An extensive review was carried out on the provision of food aid from the country’s main domestic aid organizations and the results are being used to improve public services to ensure that the resources meet the needs of all those in need, including low-wage workers and people of foreign origin.

Main challenges

It is necessary to continue to ensure that hunger and malnutrition do not become a problem among the poor, the elderly, and the disabled. There is also a need for further measures regarding obesity, health, and well-being, where physical, mental, and social factors are looked at holistically to improve the health, well-being, and quality of life of the citizens over the long term.

International cooperation

Iceland’s main objective in international development cooperation is to reduce poverty and hunger and to promote general welfare based on gender equality, human rights, and sustainable development. Particular attention is paid to children’s rights and to giving them opportunities to
thrive and develop their abilities.

Iceland supports the World Food Programme (WFP) and UNICEF. Both organisations provide important nutritional assistance to developing countries and regions receiving humanitarian assistance. Iceland’s support is in the form of framework agreements and agreements on providing Icelandic experts. Iceland also responds to emergency calls insofar as possible with emergency contributions. For example, Iceland supports a project run by WFP that gives over twelve thousand primary school students in Malawi access to home-grown school meals.

Next steps

• New food, agriculture, and fisheries policies combined with action plans that focus on sustainable development.
• Strategic priorities in prevention, health promotion, and treatment of obesity based on scientific knowledge. Implement actions to promote public health with an emphasis on healthy lifestyles to reduce the health consequences of obesity. 

Hunger, or lack of sufficient nutrition, is an issue for certain groups of people in Iceland. Although comparatively few, the group is growing. The rise of housing prices has resulted in more of an average person’s income goes to housing, leaving less for other necessities, including food.

The system providing food assistance is unregulated and data is lacking. However, it clear from the data from the service providers that the number of people in Iceland who rely on food assistance has multiplied since mid-2022. The recipients are people with the lowest incomes, people with disabilities, and marginalised groups. There is a clear rise in the number of asylum seekers receiving food aid with this group now being the majority of recipients. Food assistance is mostly delivered by non-governmental organisations who rely on voluntary donations. Food prices are also high in Iceland, in part due to a heavily regulated market for the production and import of agricultural products and limited competition in the grocery market. School meals are not uniform and differ between municipalities in terms of access and price.

A food policy and strategy was recently put forth by the Minister of Food, Agriculture and Fisheries to guide improvement in this area until 2040. The policy is intended to be a guiding principle in decision making to increase value creation in domestic food production, ensure food security, and increase the well-being of people in harmony with the environment and nature. The strategy focuses on sustainable food production, society, food security, consumer needs, research, innovation, and education.

Iceland should consider making school meals completely free of charge or otherwise linking them to income to ensure equal access. The right to nutrition includes the availability of healthy food and all forms of food policies and assistance should take this into account. Food security should be increased and ensured by focussing on sustainable agriculture and increased subsidies for electricity for vegetable production. Food waste persists, but numerous solutions were recently formulated to limit the problem. However, the status of their implementation is unknown. The current agricultural system should be revised to increase competition in the market, sustainability of the products, and lower food prices.

People who lack food and the right nutrition certainly exist in Iceland, their needs can be met, and the issues resolved. Therefore we stress the importance of prioritising the poorest countries in the world with Iceland’s ODA to achieve SDG 2.

Recommendations to the Government

Iceland should:

• set a comprehensive policy on food assistance to ensure funding, oversight, and access. This should include a focus on how to limit the need for food assistance in the long term in conjunction with other social policies.
• monitor data on how many people need food assistance and how this assistance is best provided.
• ensure that all children receive school meals, irrespective of socio-economic background.
• gather and monitor data on children’s participation in school meals.
• make efforts to lower food prices.
• increase support for sustainable agriculture and facilitate access for agricultural production.
• regulate limitations on food waste.
• ensure that 0.2% of GNI always goes to the world’s poorest countries according to the UN target, with a focus on climate resilient food production. 

SDG3

The life expectancy of Icelanders is amongst the highest in Europe and 64% of people considered themselves to be in good or very good physical health in 2021 and 70% in good or very good mental health.

Main achievements

Access to mental health services has improved throughout the country, both in schools and health care centres. Also, a cap has been placed on patient payment for services outside hospitals to lower the costs for those most regularly in need of health care and medicines.

Main challenges

Sufficient staffing in the healthcare system is a challenge that can affect diagnoses and treatment of diseases and response to large-scale emergencies. It is also an ongoing challenge to ensure safe and cost-effective health care for people all over the country.

International cooperation

Iceland provides core contributions to UNFPA, which works on projects related to sexual and reproductive health, maternity care, and childbirth. In Sierra Leone, a large-scale project that comprehensively addresses the causes and consequences of obstetric fistula in women and girls is under way in collaboration with the health authorities and UNFPA. The aim of the project is to eliminate obstetric fistula in Sierra Leone in the coming years. 

Iceland also makes annual core contributions to UNICEF, which is a leader in childhood vaccinations. Furthermore, Iceland participates in and supports international cooperation in the field of health due to the consequences of COVID-19, such as by supporting WHO and the COVAX vaccine collaboration.

Next steps

• Implementation of new public and mental health action plans according to the national health policy
• Continue ongoing public education on safety in traffic, aviation, and navigation.
• Put forward policies and action plans that contribute to increased stability in the housing market, with an emphasis on building quality homes for all income groups. 

Iceland’s overall challenge is to ensure equal access to primary health care for all, especially those in vulnerable positions. Inequalities exist at various levels, as reflected in a lower health expenditure per capita than the EU average, uneven geographical distribution of health care services, and lack of health care professionals. While the majority of people in Iceland report being in good health, chronic illnesses and the prevalence of behavioural risk factors still cause premature mortality. This calls for Iceland to develop a more holistic view on health for all age groups.

Iceland should work more purposefully with non-governmental organizations to promote and prioritise holistic public health. This includes ensuring equal access to all forms of indoor and outdoor exercise to support mental, social, and physical health for everyone at all stages of life. Successful pilot projects, such as the use of exercise cards and health-promoting receptions at public health care services, should be scaled up by focusing on equal participation and well-being for all.

Iceland needs to improve the provision of comprehensive sexuality education at primary and upper- secondary school level in relation to global guidelines and recommendations. In cultivating optimal sexual health and well-being, Iceland also needs regular assessment and surveillance regarding the implementation of such education.

The government should put more effort into promoting positive awareness and understanding of mental health to decrease stigma and facilitate access to effective mental health services for all. This includes improving policies and legislation, school- and work-based programmes, and caregiver support. A mental health action plan is already in progress. It is crucial to finalize, approve, and implement the plan as soon as possible.

Iceland has been successful in preventing adolescent substance use through an evidence-based intervention model. However, there are signs of backsliding that demand that more attention be paid to the overall health and well-being of young people, in particular those in vulnerable
positions due to socio-economic status, background, or abilities. With respect to global efforts, Iceland should continue to promote basic health care services as part of its ODA in relation to its vision of SDG 3. Emphasis should be placed on supporting mothers and children, including advancing sexual and reproductive health rights. A good example is Iceland’s participation in the joint UNFPA-UNICEF Programme working towards the elimination of female genital mutilation.

Recommendations to the Government

Iceland should:

• invest more in holistic approaches to health and wellbeing, including health promotion and disease prevention methods at all stages of life.
• raise public awareness of health literacy and its importance.
• implement health impact assessments.
• ensure continuous comprehensive sexuality education in Icelandic primary and upper-secondary schools.
• implement and monitor a mental health action plan.
• ensure an appealing work environment for health care professionals to ensure basic services for all.
• guarantee equal access to all forms of health care services across geographical regions and irrespective of people’s background, abilities, or orientations. 

SDG4

Provisions in Icelandic law are in line with the SDGs, such as, the universal right to education, the value of education for individuals and society, and the connection between general education, democracy, human rights, equality, culture, and sustainability. 

Main achievements

The number of people who have graduated from teacher education programs has increased significantly in recent years. There has also been a reduction in municipal fees for stationery and study materials, so now over 90% of primary school students live in municipalities with free materials.

New legislation on the integration of services for the benefit of children covers all services provided within preschools, primary and secondary schools, leisure centres, community centres, and within the health and social care systems. The aim of the legislation is to ensure quality and continuity in all services that concern children and that their interests and well-being are always prioritized.

Main challenges

One of the main challenges in the Icelandic education system is to guarantee students of foreign origin equal opportunities for education and to reduce dropout rates from secondary education. Language barriers are thought to be a decisive factor. It is also a challenge to ensure gender equality in terms of participation and performance in education, as boys are lagging behind girls in academic performance and are graduating from university in fewer numbers.

International cooperation

Education is a priority in Iceland’s bilateral development cooperation. Iceland supports educational projects in the Mangochi region in Malawi and Iceland’s partner regions in Uganda.

UNICEF is one of Iceland’s focus organizations. Iceland pays a core contribution to the organization in addition to supporting individual educational projects. Iceland also supports educational projects within UNESCO with a special focus on educating girls in Afghanistan.

For several years, training programmes on fisheries, gender equality, geothermal energy, and land restoration have been operating in Iceland. The programmes aim to increase the capacity of developing countries in each field.

Next steps

• Plan for a law on school services and forming a new service organisation for education to ensure equal access of children to those services, including speech therapy and emotional support.
• Work further on preventing boys from dropping out of the education system after primary school.
• Implement the UN Convention on the Rights of Persons with Disabilities, which deals with equal access to education and work.
• Work on ensuring that immigrants and refugees have equal access to education in Iceland. 

Iceland’s overall challenge is to ensure equal access to basic quality education for all, especially those who endure marginalization within the education system due to gender, disability, nationality, sexuality orientation, socio-economic, or migration status, among other things. While state-run universities do not charge tuition fees, financial support to students is critical to ensure equal access to higher education. Complementary educational pathways should be established at the university level to include students with developmental disabilities and students with refugee and asylum backgrounds. Different parts of the country must also be treated equally, paying particular attention to ensure lifelong learning opportunities for all in rural areas and small municipalities.

The Icelandic education system is considered comparatively inclusive, as noted by the European Agency for Special Needs and Inclusive Education. Yet, children and young people continue to lack meaningful opportunities for participation and engagement. This is particularly true when it comes to policy- and decision-making processes regarding systemic structures, school development, and academic content. The government must encourage collaborative pedagogical practices and multidisciplinary and child-centred teaching and learning approaches within and across the preschool, compulsory, and upper-secondary level along with leisure and recreational activities.

In 2011, the government introduced six fundamental pillars underpinning education at all levels in Iceland. The pillars represent a uniquely holistic approach to education, emphasising matters such as democracy, human rights, and sustainability. However, as noted in a recent report, education for sustainable development tends to be largely neglected as part of the wider education policy and practice. More efforts are needed to integrate human rights, gender studies, cultural diversity, global citizenship, and sustainable development within teacher education and professional development.

Iceland has been successful in working towards SDG 4.7 through the implementation of whole school projects, such as, the Green Flag Project/Eco Schools, UNESCO Associated School Network, UNICEF’s Child Rights School and after-school programs, and Health Promoting Schools. Such holistic education initiatives focused on the core aspects of SDG 4.7, including human rights and gender equality. They must be supported further by the government and municipalities alike.

The recently signed Act on Integration of Services in the Interest of Children’s Prosperity (Prosperity Act) is highly commendable. To ensure successful implementation, the government must be able to provide further funding to the policy implementation process to ensure a broad range of expertise and support to all stakeholders: children, families, teachers, and school authorities.

Iceland must continue to build on its solid base for upper-secondary education by revising the Adult Education Act and by considering what skills the labour market requires by, for example, participating in the PIAAC Survey of Adult Skills. More efforts should be put into adult education on sustainable development to ensure that knowledge and skills exist to bring about positive change at all levels of society.

Globally, Iceland should continue to support projects and programmes aimed at improving educational access for vulnerable groups through its development cooperation plan. This includes programs such as the home-grown school feeding implemented in cooperation with the WFP in Malawi. The government should further consider involving non-governmental organizations and universities with relevant expertise into development cooperation initiatives that concern education.

Recommendations to the Government

Iceland should:

• ensure equal access to quality education and lifelong learning opportunities for all irrespective of background or abilities.
• pilot projects in line with Project Search, which supports work-related learning for young people with disabilities should be scaled up.
• secure financial and technical support at the school and municipal level to ensure successful implementation of the new Act on the Integration of Services in the Interest of Children’s Prosperity.
• prioritize financial resources for educational research and development and pedagogical practices in line with SDG 4.7 regarding human rights, gender studies, cultural diversity, global citizenship, and sustainable development.
• make efforts to ensure that the above-mentioned areas are prioritised within teachers’ education and professional development.
• create complementary education pathways to meet the need of diverse students e.g., students with developmental disabilities, refugees and asylum seekers. 

SDG5

Iceland has ranked at the top of the World Economic Forum’s Global Gender Gap Index for thirteen consecutive years. However, gender still affects an individual’s opportunities to express themselves freely regardless of gender to some extent. Hence, more work is needed in this field.

Main achievements

The Gender Equality Act was recently updated and now also covers people who choose to register themselves as gender neutral. It also stipulates an obligation for equal pay certification in the public and private labour markets.

Maternity leave has been extended from 9 months to 12 months, which is now divided equally between the two parents. Furthermore, legislation on the termination of pregnancy gives any woman to request that her pregnancy be terminated up to the end of the 22nd week of pregnancy.

Main challenges

The gendered division of jobs in the labour market remains a challenge and holds back pay equality because female dominated professions tend to be undervalued. Also, men are more likely to be in positions of power within the business and public sector and still have better career development opportunities than women. Furthermore, new research shows that childcare and other unpaid household and caretaking lands more on women than men.

Violence against women remains an ongoing challenge. During COVID-19, the government took targeted actions to raise awareness against violence, including domestic violence and sexual abuse.

International cooperation

Promoting women’s human rights and empowering women is at the core of Iceland’s foreign policy and international development cooperation. This includes sexual and reproductive rights; women’s right to participate in all areas of society, including in matters of peace and security; and the importance of men promoting gender equality and being a part of the solution.

Almost 73% of Iceland’s development cooperation projects promote gender equality and the empowerment of women and girls. For years, Iceland has emphasized that projects and donations, both in bilateral and multilateral cooperation, support gender equality and improve the status of girls and women. Iceland has been an active supporter of UN Women since the organization was established in 2011 and is among countries contribute most to the organization.

Next steps

• Implement a new action plan to improve the prosecution speed of sexual offences.
• Further research and take action to reduce the gendered division of unpaid care and domestic work. 

Iceland faces a few challenges in this area. Equal pay certification has been implemented within workplaces in Iceland, yet it does not address the basic inequality that professional fields dominated by women are valued less than fields dominated by men. The proportion of women in management positions and as board members is significantly lower than men. Furthermore, unpaid labour of women and the gendered division of labour in the home became more evident during the pandemic.

Violence against women and children, especially sexual violence, is an ongoing problem in Iceland, with the number of convictions being too low. Marginalized groups, such as immigrant women, women with disabilities, and the LGBTQIA+ community, are at a higher risk of being  victims. The health care system needs to improve its reception of women of different cultural backgrounds, transgender, and non-binary individuals.

Iceland has succeeded in many aspects of SDG 5 and is currently leading the global ranking of gender equality with 90.8% of its gender pay gap closed according to the Global Gender Gap Report in 2022. That puts Iceland as the frontrunner for achieving SDG 5, which is an essential goal to reach if we are to achieve the other 16 goals. Iceland has taken important steps by joining and leading the UN Women’s GBV action coalition of Generation Equality, where the government put forward 24 national and international actions and goals. Similarly, Iceland amended the marriage law to no longer give exemptions for those who wish to marry under 18.

Even though Iceland has come far in promoting gender equality, it must focus on violence against women and girls as a priority and consider the setbacks from the COVID-19 pandemic. The government must plan on how to achieve the goal of eradicating violence and how to support equality internationally. The legal system must improve its protocols in handling sexual violence, as there are many examples of the legal system’s lack of understanding of the nature and consequences of gender based violence across different groups including immigrant women. By signing and ratifying the Palermo Protocol, Iceland has committed itself to prevent, combat, and punish human trafficking. Despite legal improvements in accordance with the protocol, evidence shows that enforcement of this law is inadequate.

It is important that the Icelandic government allocate more funds and resources to projects which will combat the challenges we face. In the changing landscape of peace and security, knowledge on the National Action Plan of UNSC resolution 1325 must be increased within Iceland, especially amongst groups that work in peace and security.

It is promising that around 80% of Iceland’s ODA has gender equality as a goal. Including the Gender Equality Studies and Training programme which supports gender equality and social justice in low-income countries and post-conflict societies through research, training, and education. Iceland has also been one of 14 countries that have supported the UNFPA-UNICEF Joint Programme of the elimination of FGM since 2012. It is more important than ever for the Icelandic government to continue to advocate for gender equality on a global scale and speak up on human rights violations.

Recommendations to the Government

Iceland should:

• value woman’s work and woman’s professions equally by raising their wages to the same standard as professions dominated by men, among other things.
• create an international index on violence against women (GBV Index) that measures gender-based violence and its impact, with indicators that are internationally recognized.
• strengthen and support the grassroots women’s movement through effective civil society participation and proper funding to these organizations.
• support further implementation of resolution 1325 through education and funding.
• improve support to victims of human trafficking in line with human-rights based approaches and empowerment.
• work with Health care professionals to adopt culturally sensitive practices to provide equal services to all. It is also of importance that information is provided to all on applicable medical assistance for women who have undergone FGM or other harmful practices in their
   home countries to be able to seek medical assistance in Iceland.
• make sure that gender responsive assistance is the norm when receiving refugees, asylum seekers, or women seeking international protection.
• ensure that gender equality continues to be the primary focus and properly funded in all of Iceland’s development cooperation and further raise public awareness on the topic.

SDG6

In Iceland, there is an abundance of fresh drinking water, and the country is among the richest in terms of water resources. Water quality is monitored regularly, and strict rules apply to water reservoirs and their surroundings, but sewage disposal needs to be improved in most areas.

Main achievements

Due to the good state of the water resources in Iceland, there was no coordinated water plan for the entire country before 2022. This has changed, and the new plan includes a comprehensive government strategy for the protection of water resources and the management of water issues across municipal boundaries.

Main challenges

There is a great need for improvements in sewage systems throughout the country as nearly all sewage is considered to be “non-safely treated” according to the UN. 

There are great opportunities for reductions in greenhouse gas emissions through the restoration of wetlands in Iceland, but more extensive actions are needed. Wetlands enjoy special protection under the Nature Conservation Act, and the restoration of drained wetlands is part of the government’s climate action plan. However, wetland draining is still ongoing, and further actions are needed for sufficient conservation.

International cooperation

Iceland promotes clean water and sanitation in its international development cooperation by emphasising projects that improve sanitation and provide access to clean water in Iceland’s bilateral partner countries of Malawi, Uganda, and Sierra Leone. 

Iceland also provides support for adolescent girls regarding menstrual health issues with improved access to menstrual products, and education. Limited access to adequate sanitation facilities, education, and menstrual products often leads to girls dropping out of school.

Next steps

• Improve wastewater treatment by changing the law to allow the government to participate in the costs of necessary wastewater improvements in municipalities across the country.
• Implement an action plan on ecosystem restoration.
• Build more sanitary facilities at tourist destinations according to the national plan of infrastructure development. 

Iceland’s challenges are to gain overview of its water bodies through ongoing research and the compilation of data under the auspices of the Water Board. Classifications based on empirical data are still incomplete. Although the public has been guaranteed access to sewage services, municipalities have neglected their obligations regarding wastewater treatment. This is confirmed in frequent status reports by the Icelandic Environmental Agency on sewage issues. Iceland is still far from meeting SDG 6.3 on wastewater treatment. Regulation of pollution transmitted by run-off water from man-made surfaces is incomplete. Obvious signs of urban watercourse pollution have been reported without effective countermeasures. This is a particular challenge when the source of the pollution is disperse and cannot be attributed to individual operators subject to pollution control. Drinking water in Iceland is, in most places, not treated beyond naturally occurring remediation. The protection of water conservation areas close to water abstraction areas is particularly important but has proved to be a challenge.

Iceland has succeeded in meeting the SDGs on access to drinking water and sanitation facilities in the country. Ensuring access to urban water and sewage services is part of the statutory roles of municipalities. In rural areas, Public Health Authorities contact landowners to establish water and sewage systems and, together with property owners, ensure adequate access to water and sewage systems on their properties. Special attention has been paid in the legal and regulatory framework and its enforcement to ensure service for vulnerable recipients, such as those living in poverty, by ensuring the public ownership of urban water and sewer systems.

For quite some time, water and sanitation has been a priority in Iceland’s development cooperation. Successful projects in bilateral development cooperation with Sierra Leone proposed an ambitious and comprehensive approach to improve the living standards of the inhabitants of poor and marginalized fishing communities. Iceland has placed special emphasis on improving conditions for children and women in these communities, as well as integrating environmental and climate issues into all activities.

The Icelandic government should continue the implementation of water related laws and regulations, with effective collaboration with relevant stakeholders. The first Icelandic Water Plan was published in 2022, and work has been done in recent years to establish an effective administration of water issues across administrative boundaries. There is still much work to be done. To achieve greater success in water management through a more targeted approach of the polluter pays principle, i.e., charging polluters for pollution and holding them accountable for mitigation measures and clean up. There are examples of ambitious research and monitoring campaigns, such as, in basins affected by hydropower extraction which can be taken as a sign of an untapped opportunity for water reform through collaboration between public bodies and other stakeholders.

Recommendations to the Government

Iceland should:

• Require companies to publish information on water use and their impact on water sources in their annual reports.
• Create a portal for anonymous disclosure of water pollution.
• Reduce agricultural nutrient releases.
• Aim to achieve SDG 6.6 efficiently and sustainably through analyses and policies such as the recently introduced Land and life, land reclamation plan and forestry national plan until 2031 to further support the government’s objectives for carbon neutrality and biodiversity.
• Restore wetlands where applicable.
• Continue to make water and sanitation a priority in development cooperation, especially in connection with food security, sustainability, and climate change. 

SDG7

Iceland is in a unique position when it comes to energy, as most of its energy production comes from renewable and environmentally friendly sources. The only operations in Iceland that are still reliant on fossil fuels and have yet to undergo an energy transition are sea, air, and land
transportation. 

Main achievements

About 85% of the total primary energy supply in Iceland is derived from domestically produced renewable energy sources. All electricity production in Iceland is from renewable sources (73% hydropower, 26% geothermal, and 0.1% wind energy) and domestic use of fossil fuels comes mostly from land transport and from the fishing fleet.

About 99% of domestic heating is from renewable sources (90% hot water from geothermal sources and 9% electricity). Development of the geothermal district heating system during the past few decades has resulted in many positive economic, environmental, and social impacts.

Main challenges

The share of fossil fuels has steadily decreased in the country’s energy economy in recent decades, and the government set a goal for Iceland to become completely independent of fossil fuels by 2050 through energy transitions in all areas: in the air, on land, and on the sea. Furthermore, the aims are for renewable energy sources in transport to reach at least 40% by 2030 and for a full energy transition in transport by 2040.

Another challenge is to ensure secure provision of energy throughout the country in times of natural crisis due to, for example, bad weather, earthquakes, or volcanic eruptions. Improvements are being made for energy delivery systems following repeated interruptions in recent years.

International cooperation

Iceland promotes clean and sustainable energy in its foreign policy and development cooperation. Iceland works systematically to share knowledge and experience in the field, including through the Geothermal Training Programme.

Iceland supports various institutions and funds involved in energy projects in developing countries, such as, SEforALL, IRENA, and the World Bank’s Energy Sector Management Assistance Program (ESMAP). Furthermore, Iceland has paid special attention to the integration of gender perspectives in the energy sector.

Next steps

• Expand the network of electric car charging stations around the country.
• Complete energy exchange in transport, and continue to support energy exchange on land, on sea and in aviation. Increase sustainable energy production to meet the energy demand that arises from complete energy exchange. 

Iceland’s challenge lays in implementing a long-term energy policy. To achieve its carbon neutrality goals, the Icelandic government must continue to reduce emissions and ensure that energy use in Iceland comes from renewable, green energy sources. Iceland has plenty of renewable energy as compared to other countries, but it still relies heavily on fossil fuels for land, air, and sea transportation. Increased transparency on energy consumption is needed to provide an opportunity to reduce energy waste, among other things.

With increasing population growth, the government must think of how that calls for more energy or revaluate how energy is currently used. There is a lack of government regulation addressing energy waste such as lights turned on in closed shops and businesses. If multiple users use a circuit, there is a greater need to maintain solid electricity security. The government has made it a priority to ensure energy security throughout the country and to promote equalisation of energy costs across the country. This commitment must be followed up on with action.

Iceland has succeeded in producing a high proportion of energy from renewable sources, with 99% of energy for indoor heating from geothermal energy and hydro-driven electricity. Recently, the government decided to no longer search for oil in the northern Dreki area or in any other zones within the Icelandic economic area.

Iceland should improve security and stability of electricity distribution among all regions and sectors. It is also necessary to take everyone into consideration when pricing electricity. Meeting the increased demand of green energy without disturbing untouched areas of Iceland’s nature must be ensured by reducing unnecessary energy consumption for optimum utilization and establishing regulations on prohibiting energy waste such as those found in the EU’s energy order implementation. The government should also increase the provision of publicly available information on energy efficiency and increase consumer awareness on their own energy use and how they may contribute to energy saving.

Promoting sustainable energy production in other energy sectors than electricity and supporting innovation in green energy production should be considered. For example, oil could be produced through rapeseed and hemp, which would also promote beekeeping and honey production. Oil can also be extracted from food leftovers and from land farming.

Iceland is a pioneer in the area of geothermal energy. Valuable research and education programme is carried out through the GRÓ Geothermal Training Programme, operating under the auspices of UNESCO. This postgraduate training programme aims to assist lower to middle income countries in strengthening their capacity within geothermal exploration and development. Iceland also contributes with its expertise and experience in bilateral cooperation on renewable energy and has increased these efforts in the past years. It is important to both create and pass on knowledge.

Recommendations to the Government

Iceland should:

• increase transparency of information on energy consumption to reduce energy waste.
• support innovation in green energy production.
• ensure optimum utilisation of existing energy sources.
• ensure that the green energy produced in Iceland is not used for unsustainable production.
• continue to emphasise and ensure that Iceland’s knowledge in energy production is transferred in its development cooperation.

SDG8

Once one of the poorest countries in Europe, Iceland now has one of the highest GDPs per capita in the area. With a focus on well-being and a just transition the government aims to ensure that the job market increases its productivity in harmony with the environment whilst offering everyone equal opportunities for decent work and wages. 

Main achievements

According to figures from Statistics Iceland, productivity has increased in the last five years, especially  in the field of electronic communications, information technology, and in specialized, scientifically,  and technically driven activities. In recent years, the government has focused on supporting innovation and entrepreneurial activities and promoting sustainable tourism to create good jobs. The  government has also paid close attention to changes that will take place in the labour market as a  result of the fourth industrial revolution.

Main challenges

There are official statistical indications that the situation of young people of foreign origin who are  neither in school nor in the labour market (NEET) is of great concern. Work is underway to formulate  a policy on the issues of young people in the labour market to improve the position of this group. 

Systematic underestimation of jobs where women are in the majority is also a challenge that is  being worked on in cooperation with representatives from the labour market. The situation has been assessed extensively and actions are being formulated to eliminate the wage gap from the gendered labour market.

International cooperation

One of the ten goals set in Iceland’s development cooperation policy is to stimulate economic growth in partner communities and provide decent employment opportunities for all.

Iceland provides financial support to the World Bank and cooperates with the bank in various  fields. The Ministry for Foreign Affairs also encourages Icelandic companies to invest and establish economic activities in developing countries through the SDGs Partnership Fund. The cooperation emphasises innovation, added value, and economic empowerment of women.

Next steps

• Implementation of EU regulations for the financial market.
• An overall labour market policy is in process in a broad cooperation with all relevant partners.
• Implement a new Tourism Strategy for 2030 and an action plan to maintain sustainable tourism in Iceland.
• Continue work on a new and more efficient system of employment rights for foreigners outside the EEA.

Iceland’s overall challenge is to ensure a diversity of economic opportunities, productivity, and prosperity in better harmony with nature and society. Ensuring resources and opportunities are available for people with reduced working capacity, including people with disabilities and other vulnerable groups, is also central. The increasing number of nonnationals employed in the Icelandic labour market will have to be met with policy priorities and support in relation to immigrants’ and refugees’ labour rights, health, and safety issues.

Even though Iceland is ahead of many other nations regarding the current state and development of gender equality, there are still areas for improvement. Numerous surveys and studies show a persistent gender-based wage gap within the domestic labour market, with women generally on the lower end of wage scales. Equal opportunities and equal wages for the same work is still a great challenge in Iceland. Gender disparities are also evident in relation to committee and board membership. While 66% of university graduates are women, they only represent 24% of executive committees, 27% of board members, and 24.7% of board chairmen. Projects such as the FKA Balance Scale, launched by the Association of Businesswomen in Iceland (FKA) in collaboration with the Prime Minister’s Office to achieve a 40/60 gender ratio at the executive level of managers within companies should be supported and scaled up.

For the past two years, Iceland has participated in the Mercer CFA Institute Global Pension Index, which compares retirement systems in 44 countries around the world. Iceland has ranked number one in both those years. In recent years, many Icelandic pension funds have set ambitious investment goals related to climate solutions and clean energy. This is done in collaboration with The Climate Investment Coalition, an international organization working towards mobilizing Nordic investors to make ambitious financial investments in climate friendly solutions.

Iceland has successfully developed a sector-wide cluster policy within the fields of marine, travel, and energy. This is an important platform for collaboration that the government and social organizations should continue to cultivate and support.

At a global scale, Iceland should continue to focus on providing opportunities for civil society organizations and the private sector to become responsibly involved in development projects that aim to support youth employment and women’s economic empowerment through entrepreneurship training and support to small and medium sized enterprises.

Recommendations to the Government

Iceland should:

• emphasize slow industry as part of its local and national context. Such opportunities exist in agriculture and tourism especially where green solutions, the circular economy, and regional food production and consumption play key roles.
• support cooperation and knowledge sharing between clusters to ensure sustained, inclusive, and sustainable economic growth and productive employment.
• improve equal opportunities and equal wages for the same work. The government should continue granting or supporting the FKA Balance Scale and other gender responsive initiatives.
• prioritize and support immigrants’ rights to labour, health, and safety to meet the needs of the increased number of non-nationals employed in the Icelandic labour market. 

SDG9

With a population of just under 380,000, Iceland is one of Europe’s most sparsely populated countries. The cost of building and maintaining its infrastructure is shared by relatively few and the rapid growth of tourism strained the country’s infrastructure. However, infrastructure for
research, development, and innovation in Iceland is generally good and contributes to the promotion of scientific activities and the utilization of knowledge for the benefit of society.

Main achievements

The government has set clear goals and increased funding for innovation and scientific research in Iceland. Various projects are supported by the government in cooperation with universities and businesses aimed at increasing sustainability and the circular economy in industry and high technology, such as, green industrial parks around the country and support for Carbfix (a carbon storage solution).

Main challenges

It is an ongoing challenge to ensure a safe and reliable infrastructure for all of Iceland’s inhabitants and to improve everyone’s access to good and reliable public transport. Funding has increased for the construction of transport infrastructure in recent years, but there is an accumulated need for investment in roads, ports, and airports due to the rapid growth in tourism, among other things.

Efforts are also underway to develop better public transport and active means of transport in the capital area to reduce private car usage and support Iceland’s goal of a full energy transition in transport by 2040.

International cooperation

Iceland’s expertise in the fields of fisheries, sustainable energy, and land restoration is shared through the GRÓ training programmes in Iceland. Iceland also operates an advisory list for geothermal energy, fisheries, hydropower, land restoration, and gender equality. On the basis of declarations of cooperation with international organizations such as the World Bank, FAO, and IFAD, developing countries can request expert advice, especially during the preparation and quality assessment of projects.

Next steps

• The Transport Treaty for the Capital Area has been added to the National Transport Plan as well as a specific tunnel plan. The future vision is to create a network of different transport modes and reduce vehicle imports by promoting the usage of domestic building materials. There is a focus on supporting airports providing international flight connections. Iceland still has the unique challenge of connecting the population in sparsely inhabited areas.

Iceland’s overall challenge is to ensure sustainable investment in infrastructure. The country receives a growing number of tourists, which puts pressure on the infrastructure. Investing in infrastructure will have to go hand and hand with sustainability and protecting nature.

Icelanders are well on their way to transitioning from fossil fuels to green energy sources. District heating in Iceland is powered by geothermal energy and all electrical power is produced by renewable sources. Eighty-five percent of Iceland’s energy can be considered green. The remaining 15% is consumed by transport. Iceland’s main tasks are to complete the transition away from fossil fuels in land, air, and sea transport infrastructure and make plans to transfer vehicle and oil taxes to green solutions. The new energy policy outlines a clear vision of a sustainable energy future. The fact that a consensus has been reached across the political spectrum on this future vision is a valuable and important feature of the policy.

To achieve the transition of the remaining 15% and expediate the process, the government must focus on and support new technological solutions and consider the possibility of public-private partnerships in the field of energy transition and infrastructure development. In the new transportation plan, the government is very clear on its goal to reduce greenhouse gas emissions. Public transport must be improved to reduce greenhouse gas emissions along with emissions from air travel and transport. This will not be an easy task since Iceland is an island.

Positive development can be seen in the numerous pilot projects that could be upscaled. Carbfix is a start-up company which can be taken as an example. It uses technology to capture the CO2 from power plants and factories to prevent it from affecting the climate.

The Icelandic private sector has collaborated to publish the Business Climate Guide for the first time. The government has set the ambitious goals of Iceland becoming carbon neutral by 2040 and fossil fuel free by 2050. The private sector will support these efforts responsibly and purposefully.

Many industries have already laid the groundwork and established plans for how they will try to fulfil their climate obligations. Companies have also set goals independently within sectors. Undoubtedly, the private sector will play a significant role, especially in technological development, innovation, design, and environmentally friendly solutions to mitigate climate change. However, to achieve these goals and accelerate green investment, clear guidelines, mobilization and prioritization of finances and support from the government for the private sector are fundamental.

Recommendations to the Government

Iceland should:

• make structural changes to enable diverse partnerships to expediate infrastructure development. Iceland must speed up the energy transition at sea and utilize available technical solutions.
• continue to use its expertise in green energy cultivation in its development cooperation through research, education, and practical projects. It should focus on supporting projects that focus on young people, women, innovation, and sustainable solutions.
• innovate and invest in all areas of the economy to slow climate change.
• collect and publish reliable data on the application process and distribution of startup and innovation grants from governmental institutions to ensure that women and minority groups receive equal opportunities.

SDG10

The Gini coefficient (index) for Iceland is among the lowest in Europe, and various acts have been amended in recent years with to further reduce inequality and ensure equal opportunities for everyone.

Main achievements

Recent legislative changes prohibit all discrimination based on people’s origin within the labour market and other parts of society. The aim is to promote the active participation of and equal opportunities for every Icelandic citizen, and to prevent bias based on race from flourishing in Iceland.

Several specific measures were taken to ensure services and support for vulnerable groups during and after the COVID-19 pandemic. The actions targeted the elderly, disabled people, immigrants and refugees, prisoners, the homeless, and children and their families, among other groups.

In 2022, a big step was taken with a coordinated reception centre for refugees where services and registration take place within the first 24 hours of entering the country. This has resulted in better service and greater efficiency.

Main challenges

The number of immigrants in Iceland has increased rapidly in recent years, making it is an ongoing challenge to ensure equal opportunities and wages among different social groups to leave no one behind. Providing quality services and decent housing for the rapid influx of refugees has also been a challenge.

International cooperation

Iceland’s Policy for International Development Cooperation 2019-2023 states that Iceland will contribute to the fight against extreme poverty and hunger and strive to ensure that the increased prosperity in society benefits the poorest and leads to increased equality. Iceland emphasises supporting unstable countries and the poorest and promoting international peace.

Iceland has, through the constituency of the Nordic and Baltic countries at the World Bank, advocated for increased influence from and importance for developing countries in the boards of the Bank’s institutions. For example, Iceland supports actions that aim to equalize the voting weight of all countries at the institutions to the benefit of developing countries.

Next steps

• Submission and implementation of a comprehensive immigration and refugee strategy to promote equal opportunities.
• Put into effect a new law on public finances that specifies that gender is taken into account when drafting budgetary procedures.

Inequality still prevails in Iceland for many marginalised groups. Iceland must find ways to rectify this using the principles of inclusivity. Whatever marginalised group we may focus on, the inclusivity principle is the same – find ways for everyone to fully participate in society. Iceland has done well in promoting greater gender equality, and discrimination against marginalised groups should be addressed in the same manner as gender discrimination.

The labour market in Iceland must increase its sensitivity to marginalized people. It has proven difficult for persons with disabilities to get a job and members of the LGBTQIA+ community are reluctant to come out to their employers until they have settled in their jobs. It has also proven difficult for individuals from these groups to access essential health care because employers will not grant them sick leave.

The reception of refugees and asylum seekers shows examples of systemic failure. It is important to pay close attention to the reception of vulnerable groups going forward and to establish a sound plan in that regard.

The health care system faces challenges in caring for everyone. Information and support groups in other languages than Icelandic are lacking and need improvement. Furthermore, information that is easily understood in Icelandic is lacking, resulting in people with disabilities and persons with limited knowledge of Icelandic becoming marginalised. In some cases, people with disabilities have been denied basic health care because medical professionals do not know how to meet their needs and specialised health care for this group is not available either.

Iceland should provide people of foreign origin with more opportunities to use their talents and reconsider the evaluation of the examination of degrees and professional qualifications. This especially applies to highly skilled individuals with a license to work in specialized fields. A focus should be placed on making sure asylum seekers living in Iceland are able to work while their cases are being processed. Furthermore, the government should also ensure that transition costs of migrant remittances do not go higher than 3% of the amount remitted, with a ceiling of 5% according to SDG 10.c. Securing proper funding into social and sporting activities that promote the inclusion of marginalised groups is crucial. With the newly introduced agreement on cooperation based on the Act of Integration of Services on the Interest of Children’s Prosperity, there has been an increased focus on such projects, but funding needs to be guaranteed for the future.

Peace, safety, and equality are all closely connected. It is important to reaffirm and encourage education about the inclusion of all persons. Education about the issues marginalised groups face must be improved for employers. Just like job advertisements encouraging persons of all genders to apply, persons of all abilities should be encouraged to apply as well. Here, the government and municipalities should take the lead. Iceland must also find ways to promote equal opportunities for education, healthcare, and employment nationwide.

Increasing contributions to development cooperation and focussing on increasing global equality should also continue to be a priority. Most importantly, the government should always guarantee that the basic human rights of all individuals who are a part of Icelandic society are ensured. In doing so, implementing cultural sensitivity courses for health care practitioners and professionals is important for providing equal services to all. Cultural sensitivity should be taught as compulsory subjects in nursing and medicine. Finally, Iceland should fully implement The Convention on the Elimination of All Forms of Discriminations against Women (CEDAW).

Recommendations to the Government

Iceland should:

• create information leaflets in more languages for broader inclusivity.
• ensure training for people with work experience who require a work permit.
• ensure balance between regions in terms of job opportunities.
• make wage theft illegal.
• ensure that human rights are always a top priority.
• increase education and employment opportunities for marginalized groups greatly.
• ensure that the Act on Foreigners works the same for everyone.
• implement CEDAW fully

SDG11

Despite being a sparsely populated country, the majority of Icelanders, over 95%, live in urban areas, with over 60% of the population living in the capital region. The majority of people have access to basic services, a healthy environment, energy, housing, and public transport. 

Main achievements

A variety of support is available for the acquisition of housing for purchase and rent, including special housing support for families and individuals who are not otherwise able to provide housing for themselves due to low wages, heavy living expenses, or social conditions.

In 2019, the Government and six municipalities in the capital area signed a landmark agreement on ambitious development of the transport infrastructure and public transport in the capital area. The aim is to increase safety, improve transport for all modes of transport, reduce delays, greatly increase public transport, and reduce pollution “an emissions.” 5% of new dwellings will then be in the form of social housing and 30% of affordable housing.

Main challenges

Housing shortages, especially in the capital area, have caused housing costs to grow rapidly in recent years. According to Statistics Iceland, 27% of tenants now live with burdensome housing costs as compared to 8.9% of homeowners. Burdensome housing costs are defined as housing costs that amount to at least 40% of the household’s disposable income.

Car ownership per capita in Iceland is one of the highest in the world. It is therefore essential to provide real options in public transport and transport infrastructure to encourage the use of more active modes of transport, e.g. biking and walking.

International cooperation

Iceland supports regional development projects in its bilateral partner countries of Malawi, Uganda and Sierra Leone. The projects include, among other things, support for basic services in partner regions in the fields of health, basic education, clean water and sanitation, equality, and social support for young people. The projects also include the development of infrastructure, including school buildings and healthcare facilities emphasise the use of local building materials.

Next steps

• Coordinated collection of waste throughout the country, including collection of compostables.
• Making and implementation of the country’s first urban policy.
• Implement two new plans for sea and coastal areas for future use and protection of fjords, bays, and land area.

Iceland’s overall challenge is to respond to a long-standing instability in the housing market in terms of increasing rental and housing prices. Approximately 44% of those who rent pay more than half of their disposable income in rent. The rental market is unstable with no rent ceiling. Construction companies have been building small luxury apartments instead of apartments suitable for individuals or young families. Entering the housing market has become increasingly difficult due to severely limited governmental support and subsidized loans.

A critical lack of affordable and accessible housing for people with physical disabilities exists, including housing options for the elderly. While building regulations state that housing should be accessible to all, long waiting lists for accessible housing for people with physical disabilities persist. The governmental policy favours seniors living at home for as long as possible, yet no financial support exists in relation to making homes more accessible. However, many municipalities are using and testing innovative welfare technologies to respond to this challenge. Overall, health and social services at the municipal and national level need more integration and coordination.

Reducing car use is necessary to meet SDG 11. Personal car use is highly popular in Iceland with the number of newly registered cars increasing by the year. Inner-city traffic congestion in the capital of Reykjavík was responsible for 9 million hours lost in 2019 and regular air pollution episodes. Yet, public funds are predominantly used on road and parking infrastructure. The Law of Multi-Owned Buildings internalizes parking costs and, in that sense, discriminates against residents who do not own cars, especially as expensive parking garages are the norm in new buildings. Public transport, in turn, is infrequent, costly, and does not serve all inhabitants. To make cities and settlements in Iceland more inclusive and safer, an emphasis should be placed on developing affordable, non-polluting public transportation and infrastructure that supports diverse forms of active mobility. Reducing speed is needed in streets frequented by active transport users. Planning more commercial, sports and leisure services within residential areas would reduce the need for trips made by personal cars.

Climate change is expected to increase flood risk in urban areas. The government therefore needs to fully implement a national strategy to alleviate this risk by implementing a sustainable urban drainage system (SuDS) policy which provides additional benefits such as increased biodiversity and well-being and is a well-known climate change adaptation action.

With urban densification, it is important to protect and expand green areas within the city and to ensure accessibility to them. Overall, wheelchair accessibility to public services and green areas must be improved significantly. For the urban areas to become more age friendly, availability of adequate seating areas needs to be increased. The government should concern itself with guaranteeing the safety of different groups at all times within the urban area, such as, vulnerable groups like members of the LGBTQ+ community, disabled people, women, and children.

Recommendations to the Government

Iceland should:

• ensure affordable, accessible housing for all, focusing on long-term, sustainable solutions for vulnerable groups, such as, those of lower income, the elderly, and people with disabilities.
• focus on providing subsidies and other resources such as public grants to improve accessibility and ensure that new buildings are accessible to everyone.
• eliminate the grey area between the national and municipal governments and between ministries for providing health and social services for those in need of home care and other assistance.
• make public transport a viable inner-city option with equal access to all.
• implement a national bicycling strategy, spend more public funds on infrastructure that supports active mobility, implement tax-free benefits in the workplace, and inact a 30 km per hour speed limit in residential areas.
• implement measures to curb road traffic during air pollution episodes, but also more generally implement the polluter pays principle.
• improve access to diverse services and green spaces within urban areas and make infrastructure more resilient to flooding with a national sustainable urban drainage strategy.
• implement user payment principles on public parking at universities, schools, hospitals, and governmental institutions. 

SDG12

Iceland has one of the highest consumer consumption rates in the world and has a long way to go in reducing waste generation. Policies and action plans are in place that aim to increase sustainable consumption and to significantly reduce generation of waste over the next few years. 

Main achievements

A national policy on waste reduction named Together against Waste is in effect to increase sustainable consumption and promote synergies between lifestyles and processes that increase the lifespan of items. It also aims to decrease the usage of packaging, promote product design that does not contain harmful substances, escalate green entrepreneurship initiatives, diminish disposal of waste, and shift society’s view on what is considered to be waste. Furthermore, the national waste management policy titled Towards a Circular Economy aims to significantly reduce waste generation, increase recycling, and stop landfilling. Iceland’s action plan against food waste includes 24 actions to reduce food waste in the entire food value chain and Iceland’s action plan for plastic includes 18 actions to combat the environmental danger caused by plastic in the environment.

Main challenges

Iceland faces great challenges to achieve the goals on sustainable consumption and production. The country has one of the highest levels of GDP per capita in Europe, which is 19% above the EU average. Iceland has also a long way to go in reducing waste generation, but only 26% of household waste is recycled. Iceland lacks the infrastructure to recycle most domestic waste meaning that most is exported and 12% of construction waste goes to landfill, which should be decreased to 5% by 2030.

International cooperation

The training programmes within GRÓ – International Centre for Capacity Development in Iceland aim to make production methods more sustainable, for example, by promoting sustainable land use and fisheries management.

Internationally, Iceland participates in recommending reforms for harmful government subsidies for fossil fuels, including by participating in a joint ministerial declaration on the subject at the 12th WTO Ministerial Meeting in Geneva in 2022, in ongoing talks on environmental issues at the WTO level, and in agreements on climate change, trade and sustainability (ACCTS).

Next steps

• Measures to prohibit dumping and burying organic waste with other waste. Instead organic waste will be used for composting.
• Continued funding for projects that promote a circular economy.
• Strategic planning for the state to finance educational materials on sustainability for preschools and primary and secondary schools. 

Iceland faces a significant challenge in reducing its high ecological footprint, which is one of the highest in the world. This is largely driven by the country’s consumption and wasteful behaviour, which shows no signs of slowing down. Around 71% of greenhouse gas emissions from Icelandic households come from imported goods, which effectively outsources emissions to poorer countries. As such, Iceland must take collective responsibility for its impact on the Sustainable Development Goals in other countries, with the government, companies, institutions, and citizens all working together to respect the limits of nature and promote greater equality and justice.

To achieve SDG 12, there are several key sub-targets on which Iceland must focus. Firstly, the country should prioritize waste prevention over waste management. This approach would create new jobs and expand the repair industry, while redirecting funds typically used for waste disposal back into the economy in the form of repair skills and new business models. This should apply to all industries, given the high number of imports in relation to consumption and waste.

Secondly, Iceland must address the challenge of greenwashing, which has hampered progress towards the implementation of the Sustainable Development Goals. The country should focus on implementing circular and doughnut economy principles that emphasize sustainable production and consumption methods, including the regeneration of resources and the protection of local communities involved in the production of goods.

Targets 12.1 and 12.2 are also crucial in promoting responsible consumption in Iceland. These involve going beyond simply consuming less or better or second-hand goods, to considering the sustainability aspects of production methods and ensuring that those involved in the production  and manufacture of goods have their rights and livelihoods protected.

Additionally, Iceland needs to follow the example of EU countries by implementing policies and laws that hold polluters responsible for funding the disposal of waste created during production and post-production. This will ensure that Iceland has better disposal mediums and help to reduce its environmental impact.

Iceland has made progress in some areas related to SDG 12, such as creating open and equalizing libraries through partnerships with the private sector and promoting circularity of items. The focus on minimizing greenhouse gases in Icelandic agriculture and the growth of the second-hand clothes market have also shown promise. Another area of potential lies within supporting local tourist businesses that display circularity in their products, such as ceramics and wool jumpers. Iceland should further invest in these and similar projects across the country to expand their reach, as they offer a promising example of how SDG 12 can be implemented in other areas of Icelandic society.

It is critical for Iceland to take a comprehensive approach to addressing its high ecological footprint and promoting sustainable consumption and production methods. By working together and prioritizing the targets outlined above, Iceland can move towards a more sustainable and equitable future.

Recommendations to the Government

Iceland should:

• adopt a sustainable economic system, such as the doughnut economic model, which measures a country’s welfare beyond GDP.
• encourage sustainable consumer behaviour through education, by improving product information and labelling, and ensuring fair pricing.
• implement right to repair policies like those seen in other EU countries and offer incentives for repairable products including special tax relief on the consumption tax (VAT) for all second-hand and repairable goods.
• develop a rating system for cars based on their pollution impact and tax them accordingly. Restrict ads for low-rated cars. Recycle all the constituents of cars and stop putting nonmetallic parts in landfills.
• conduct research on the long-term impacts of waste burial in Iceland.
• develop standardized life cycle assessments (LCAs) for supply chains and create policies and repercussions for companies that do not meet such sustainability guidelines.
• create laws that only allow goods with a certain level of repairability to be imported and offer simplified information for consumers to make informed choices.
• promote the production of sustainable, high-quality national agriculture products.
• prioritize global awareness, justice, and respect for the limits of nature in global trade agreements.

SDG13

Iceland’s net greenhouse gas emissions per capita is high, compared to other countries. This is mostly due to emissions from industrial processes and transport. Iceland aims to achieve carbon neutrality and a full energy transition no later than 2040. 

Main achievements

Iceland submitted an enhanced Nationally Determined Contributions (NDC) in 2021, where it stated that Iceland is to achieve a net reduction in greenhouse gas emissions of 55% by 2030 compared to 1990 levels by acting jointly with the European Union, its member states, and Norway. Furthermore, Iceland has set an independent national target of a 55% reduction in emissions for which Iceland is directly responsible by 2030 as compared to 2005 levels. The goal is to complete independence from fossil fuels no later than 2040 and reduce energy need. The goal to achieve carbon neutrality by 2040 has been legally bound and if successful will make Iceland the first stake to be independent of fossil fuels.. Iceland’s Climate Action Plan now contains 50 measures aimed at reducing greenhouse gas emissions and increasing carbon sequestration. Furthermore, Iceland aims to achieve climate resilience and has a national adaptation strategy in place.

All of Iceland’s electricity production and heating comes from renewables and hydro and geothermal sources. That leaves transport and the fishing fleet still running on fossil fuel. However, the uptake of electric cars has been fast in Iceland. The energy transition in the maritime sector has started but is much less advanced. 

Main challenges

Iceland is already affected by climate change. Iceland’s glaciers are retreating, sea levels are rising, and there have been changes to marine ecosystems surrounding the country, including ocean acidification. There is also an increased risk of landslides, coastal flooding, and vegetation fires.

Iceland’s biggest challenge is to achieve its ambitious goals of reducing greenhouse gas emissions and achieving carbon neutrality by 2040. Iceland’s net greenhouse gas emissions per capita is high, compared to other countries, and according to the Environment Agency of Iceland, Iceland’s emissions have increased by 5% since 1990. For Iceland to reach its targets, all sectors of society need to contribute, and emissions based on consumption must be reduced.

Emissions from land use, land use change, and forestry (LULUCF) are greater in Iceland than all other sectors combined. This is primarily due to emissions from grassland, wetlands, and cropland. LULUCF is therefore a priority in Iceland’s Climate Action Plan and key to reaching the goal of climate neutrality.

International cooperation

Iceland is a member of the United Nations Framework Convention on Climate Change (UNFCCC) and financially supports the UNFCCC sub-fund for the poorest developing countries. Iceland doubled its annual support to the Green Climate Fund in 2019 and increased the contributions again by 50% in 2022. The fund is intended to finance projects in low- and middle-income countries that aim to reduce greenhouse gas emissions and enable countries to deal with the consequences of climate change.

Iceland became a member of the United Nations Adaptation Fund in 2022. Furthermore, Iceland is a member of the UNDP’s Climate Promise, which aims to support countries in implementing their national plans (NDCs).

According to the OECD’s Development Cooperation Committee (DAC), 34% of Iceland’s international development cooperation goes to climate-related projects, which places Iceland in seventh place among DAC countries.

Next steps

• Enhance and continue work on the implementation of the Icelandic Climate Action plans, including a sector-specific climate roadmaps for businesses with measurable goals and corrective proposals to reduce emissions.
• Continue work on Iceland’s National Adaptation Plan in the face of climate change.
  

Iceland’s challenge is that emissions are high relative to its small population. A climate action plan exists but has not been fully implemented. Moreover, much stronger actions in all sectors must be adopted in Iceland. Poor climate governance and the lack of climate consideration in public policies halts efficient emission reduction in, for example, the tourism industry. Increased education and awareness need to be strengthened as climate issues have a strong link to equality as they affect people and nature. Other challenges are greenwashing, a serious misuse and misunderstanding of the term “sustainability”, and a lack of opportunity for the public and NGOs to partake in climate action plans.

Iceland has been successful in setting relatively ambitious goals, such as, reaching carbon neutrality in 2040 and becoming fossil fuel free the same year. Furthermore, the use of fossil fuels for heating and electricity production is very limited in Iceland. The Climate Adoption Policy was made in 2021, the first of its kind in Iceland.

Iceland should rethink its food production, both in agriculture and fisheries, as this is an important climate issue. Innovation is needed in protein production and crops cultivated for human consumption. More people should also be encouraged and empowered to act on environmental issues by promoting education on climate issues. Although economic growth is important in many ways, it is not a measure of welfare. Environmental factors, or climate action and sustainable development, should be at the forefront in these matters. Iceland needs to prioritize actions that have a positive impact on equality, are economical, reduce emissions significantly, and promote other SDGs. The polluter pays principle should be implemented and emission reductions from the biggest polluters tackled right away. That is, the responsibility for emission reductions should be borne by those companies that emit the most, not the public.

The government should ensure that carbon sequestration does not reduce biodiversity. Furthermore, Icelandic authorities should apply other methods than just financial incentives. These could be enacting laws, using and applying current sanctions, and analysing official budgets for impacts on emissions. All ministries should take the lead with direct action in public institutions and reduction in air travel. Focusing on innovation in the circular economy and reducing consumption should be a priority. Improved research and monitoring of natural hazards due to climate change is needed to mitigate future challenges. Priority in employment structures should be made climate-oriented by focusing on lowering emissions and energy use.

Recommendations to the Government

Iceland should:

• limit emissions in line with the targets set.
• put carbon levies on fisheries, tourism, and agriculture to encourage emission reduction.
• secure funding and participation of schools for sustainability education.
• secure funding for monitoring natural hazards.
• ensure public participation in climate policy and action plans.
• promote consumer awareness on sustainable food choices.

SDG14

Iceland has decades of experience in the sustainable use of marine resources. All decisions on the total catch of exploitable marine stock are in accordance with the scientific advice. Plastic pollution and ocean acidification are of significant concern. 

Main achievements

A fisheries management system has been developed in Iceland to promote responsible fishing on a sustainable basis, together with good management of the marine ecosystem. It is estimated that unregistered, unregulated fishing within the Icelandic fishing jurisdiction has been eliminated. All decisions on the total catch of exploitable marine stock are in accordance with the scientific advice of the Marine and Freshwater Research Institute, and the strain from fishing the main exploitable marine stock has been historically low in recent years.

The Icelandic fisheries sector enjoys no government subsidies.

Main challenges

Ocean acidification caused by the release of carbon dioxide is a significant concern for Iceland. Contributions to research on ocean acidification have increased, especially for research on the effects of acidification on the ecosystem along Iceland’s coasts.

Plastic pollution, including pollution from microplastics, is a great challenge. In 2020, an action plan for plastic issues took effect.

Fourteen marine protected areas (MPAs) have been designated within Iceland’s economic jurisdiction. Their extent is less than 1% of the jurisdiction. However, the regional protection of the biosphere is much greater than these figures indicate, as large areas are protected for the long or short term in relation to fisheries management and vulnerable marine ecosystems (VMAs).

International cooperation

Iceland is active in international cooperation for fisheries and ocean management and always advocates for an ecosystem approach to the management and utilization of living marine resources. Internationally, Iceland has emphasised the fight against illegal, unregistered, and unregulated fishing, for example within the FAO, and has ratified the Agreement on Port State Measures to Prevent, Deter and Eliminate Illegal, Unreported and Unregulated Fishing (PSMA).

Next steps

• Submission and implementation of a new fisheries policy.
• Conservation measures to strengthen efforts on protected areas in Icelandic waters.
• Actions according to a new action plan on plastic pollution to reduce marine plastic.

Given that fishing is one of the main industries in Iceland, the challenge of plastic pollution in the sea is alarming. The government must ensure robust research, processes, and detailed estimates to establish a clear picture of the situation. While 17 ocean areas around Iceland are now internationally protected, these areas only account for around 2% of the total ocean area. Iceland’s direct responsibility for ships is about 20% of the country’s emissions (excluding LULUCF). Extensively used bottom trawlers use a lot of energy, cause major harm to the seabed, and disturb organic matter while emitting greenhouse gases. Salmon ocean farming is rising rapidly without proper legal and regulatory frameworks, which is a concern to the fair use of Iceland’s natural resources. Sewage and drainage systems in Iceland are poor and should be updated to centralized secondary treatment at the least.

Iceland has banned the use of heavy fuel oil, and a bill on banning oil exploration in Iceland’s jurisdiction has also been put forth. The electrification of ports and harbours has started. Furthermore, the quota system has led to controlled harvesting of wild fish stocks and prevented overfishing of commercial species.

Iceland should make the fishing industry more responsible and establish liability rules for the deposit of waste and plastics, greenhouse gas emissions, discarded catches, and ecological disturbance. Fishing and processing fees should be increased along with increased oversight that should include legal frameworks and resources for institutions. Iceland should be a leader in ocean ecosystem research and education. Reviewing of acts relating to marine matters is further advised and bottom trawling should gradually phased out by 2030 when it should be banned in all of Iceland’s 200 nautical mile exclusive economic zone.

It is necessary to protect the seas of Iceland to a much greater extent, especially considering the adoption of CBD COP15. Protecting 30% of the ocean requires careful implementation that includes strong monitoring and establishment of an ocean and fresh water protection institute to ensure the protection and monitoring of ocean areas, waterways, and river basins.

The government needs to place increased effort into actual implementation and monitoring of policies that deal with greenhouse gas mitigation and ecological conservation. Intensive aquaculture creates marine pollution and threatens animal welfare. While the green paper on biodiversity from 2022 gives a good oversight, there is a lack of knowledge within state institutions about relevant terminology.

Protection is needed for freshwater systems and biodiversity at all stages. Freshwater ecosystems in Iceland are dynamic, and together with the unique geological settings of the island and recent deglaciation, they make diverse habitats that are a home to specially adapted populations and endemic species. It is of great importance to protect these habitats and involve processes that protect species and biodiversity. Hydropower plants have negative effects on nutrition in the sea for wildlife and on freshwater life, for example the spawning grounds of all freshwater fish.

A surge in maritime transport has caused marine coastal waters to be one of the most invaded habitats around the globe. Therefore, appropriate management measures must be put in place to limit the impact of invasive species. Stakeholder education for vessel operators, port authorities, and the general public can help prevent the introduction of invasive species and minimize their impact.

Involvement of NGO’s and the public must be realized, as stated in the Aarhus Convention.

Recommendations to the Government

Iceland should:

• set a comprehensive Marine Offshore Act.
• implement a strong carbon tax within the fishing industry.
• increase funding for research on the uniqueness of Icelandic nature and biodiversity.
• protect 30% of the oceans within Iceland’s jurisdiction based on conservation values and research on the ocean’s ecosystems.
• increase fishing, processing, and fish farming fees for utilisation of Iceland’s natural resources.
• strengthen public institutions in research and control of the ocean and ocean natural resources.
• establish measures against all major threats to biodiversity, including invasive species, overexploitation, pollution, habitat degradation, and climate change to protect biodiversity in freshwater and in the oceans.
• protect the ecosystems of freshwater rivers throughout the country through the cessation of river levelling.

SDG15

Due to Iceland’s location and natural conditions, biodiversity is sparse in terms of the number of species, but Iceland is home to large and internationally important populations of certain species, including seabirds, as well as a unique ecosystem as an island with an arctic climate. Efforts in afforestation, land restoration, and reclamation of wetlands have been significantly increased in recent years. 

Main achievements

Over 130 areas are protected in Iceland, and almost 15% of Iceland’s national land territory is within a national park. In total, 26% of Iceland’s national territory is protected.

New laws on land restoration, forests, and forestry promote sustainable use and reclamation of the respective ecosystems. In 2022, a comprehensive strategy for land restoration and forestry took effect. Afforestation, land restoration, and wetland reclamation have increased in recent years.

Main challenges

Iceland has been fighting erosion, degradation of vegetation, and desertification for over a century, and although progress has been made, securing sustainable land use and restoring ecosystems remains a challenge. Only 1.5% of Iceland’s land area is covered by forests, 23% is vegetated, and 63% of Iceland’s area is considered a desert.

Several imported species have proven to be invasive, including mink, nootka lupine, and cow parsley. It is important to enhance work to curb their spread and find ways to prevent the importation of new exotic species that may turn out to be invasive.

International cooperation

Biodiversity and sustainable use of ecosystems is a key issue in Iceland’s development cooperation. This includes the activities of the Land Restoration Training Programme within GRÓ and Iceland’s cooperation agreements with international organisations such as UNEP.

Iceland has also been an active participant in various international agreements that pertain to life on land, including the Convention on Biological Diversity (UN-CBD), the Ramsar Convention on Wetlands, the United Nations Convention to Combat Desertification, and the CITES Convention on International Trade in Endangered Species of Wild Fauna and Flora.

Furthermore, Iceland has lobbied for issues related to the restoration of ecosystems to become part of integrated actions to combat climate change through the United Nations Climate Change Convention (UN-FCCC).

Next steps

• Implement an action plan on soil and forestry conservation.
• Introduce actions to work according to newly signed declaration to protect biodiversity in 30% of land and ocean areas. 

Icelandic terrestrial ecosystems have been through severe degradation since human settlement. Yet, reversing this development and restoring degraded habitats has not been sufficiently successful. Iceland’s unique nature and ecosystems are under multiple threats from invasive species, tourism, the lack of sufficient land use planning and environmental impact assessments of land use, forestry, agricultural activities, and the construction of hydro, geothermal and wind power plants. One of the most severe threats to biodiversity and ecosystems is climate change.

Iceland has pledged to increase the size of protected lands from 22% to 30% by 2030. Since 2018, the government has proven to be inept in implementing the Natural Conservation Register (Part B) plan, which contains suggestions of areas that should be protected based on scientific recommendations. Despite considerable effort and its immense importance, the National Highland Park has not been established.

Iceland has succeeded in providing a recently updated red list of vascular plants, birds, and mammals. Furthermore, the government has updated lists of protected vascular plants, bryophytes, and lichens. In recent years, the Icelandic EPA and Ministry for the Environment have increased the number of protected areas. Finally, the government has launched an ambitious monitoring programme of Iceland’s soil and vegetation resources and has a 10-year reclamation plan that establishes a vision and a policy for the Land Reclamation Act.

To fully implement SDG 15, Iceland should increase funding for research and monitoring of Iceland’s nature, as research forms the basis of sound decision making. Further, conditions in Iceland provide an exceptional opportunity to research and understand the importance of biological diversity, research that could be used for developing effective conservation strategies.

Lists of invasive species need to be updated and increased efforts are needed to eradicate these species where possible, implement impact assessments, and fight against misinformation on their impact. The current monitoring of soil and organism import is insufficient. Furthermore, the National Red List of bryophytes and lichens has not been updated for 27 years and no red lists exist for terrestrial invertebrates and fungi.

Iceland should place more focus on its national responsibility species, for which Iceland is an important habitat for either Europe’s or the world’s populations. Additionally, hunting of protected red list bird and mammal species should be prohibited. Grazing of livestock should  be sustainable and monitored or prohibited in sensitive areas.

When it comes to fulfilling the aim of protecting 30% of land areas by 2030, a special focus should be placed on important habitat types, biodiversity, and fulfilling the aims of the Bern Emerald Network. Concurrently, more focus is needed on the work of park rangers and professionalisation of protected lands management. The implementation plan of the Natural Conservation Register (Part B) should be completed in accordance with scientific recommendations and the Natural Conservation Act.

Producing renewable energy through wind- and hydropower plants should not have detrimental effects on ecosystems. Benchmarks for SDG 15 need revision, especially indicators for goal 15.1 which focuses on the size of forested area. Currently it does not distinguish between industrial forestry areas, which form manmade novel ecosystems, and restoration of degraded natural birch forests.

Recommendations to the Government

Iceland should:

• maintain and increase funding for research and monitoring of Iceland’s nature, bio- and geodiversity, as well as for nature conservation and increase the number of park rangers.
• protect 30% of land areas by establishing a National Highland Park and other parks.
• complete Part B of the Nature Conservation Register in accordance with scientific recommendations.
• restore degraded ecosystems, such as birch forests and wetlands.
• update lists of invasive species in terrestrial ecosystems, implement impact assessments, eradicate them where possible, and communicate reliable information on their impact.
• implement species protection plans for all protected species.
• prohibit the hunting of red list bird and mammal species.
• map, monitor, and implement protection plans for national responsibility species in terrestrial ecosystems.

SDG16

Iceland has ranked as the most peaceful country in the world since the first the Global Peace Index launched in 2009. Internationally, Iceland advocates for respecting human rights, democracy, and the rule of law. 

Main achievements

Prevalence of violence is low in Iceland; principles of democracy, human rights and rule of law are enshrined in the Constitution; legislation safeguarding transparency and freedom of speech is in place.

Iceland has ratified the Council of Europe’s Istanbul Convention on violence against women and has, in recent years, adapted Icelandic legislation to meet the requirements set out in the convention.

In 2021, changes were made to the General Penal Code to further improve the protection of victims of human trafficking and to facilitate prosecution of those responsible for the crimes.

Main challenges

Iceland aims to be a frontrunner in the fight against all forms of gender-based violence. For this to happen, special attention must be paid to vulnerable groups. To this end, the Procedure of Criminal Cases was amended in 2022 to improve the legal status of victims, including disabled people.

Law enforcement remains vigilant to the increased prevalence of cybercrime and organised crime. According to a 2020 report by OECD’s Working Group on Bribery, detection of foreign bribery, as well as awareness of related risks, are still lacking in Iceland.

International cooperation

Human rights, including gender equality and the rights of LGBTQ persons, democracy, the rule of law, freedom of expression, and the safety of journalists are clear priorities in Iceland’s foreign policy, including in development cooperation. This is seen in Iceland’s work and emphasis within OSCE, the Council of Europe, the World Bank, and the UN.

Iceland’s presence in the United Nations Human Rights Council in 2018-2019 gained world attention, and at the General Assembly in 2020, Iceland announced that it will be applying for a seat on the Council again for 2025-2027.

Next steps

• Implementation of an action plan to strengthen police training and improve measures against organized crime.
• Implementation of measures for prevention and awareness raising against sexual offenses and gender-based violence. 

According to the recent 2022 Global Peace Index, Iceland ranks number one as the most peaceful country in the world. Yet, freedom of expression is widely challenged, and the growth of hate speech is visible in Icelandic society.

Providing better support for vulnerable groups and offering inclusive services to everyone is needed so that fundamental rights are guaranteed for everyone. Lack of convictions in cases of violence, including gender-based violence and sexual offences, is too common. Iceland has a  national plan for the implementation of UNSC no.1325 resolution on Women, Peace and Security and emphasizes it in its foreign policy. Even so, public knowledge of UNSC no.1325 is little to none and should be improved.

After the pandemic, domestic violence increased and government policies must have broader goals to eliminate violence against all women, especially women with disabilities, who are at particular risk when it comes to violence. There is a lack of data on the status of marginalized groups. Trends indicate increased violations against minority groups while it is difficult to confirm as monitoring and evaluation of violence against minority groups is not being fulfilled. For instance, the newly passed immigration bill undermines certain rights of asylum seekers, in particular children. General education and information need to be improved to increase tolerance and understanding towards marginalised groups to ensure a just and equitable public discourse.

Iceland is currently ranked 14th on Transparency International’s Corruption Perception Index, which is significantly lower than other Nordic countries. Where 100 points signify no corruption, Iceland’s score fell from 82 in 2012 to 74 in 2022 and its image in relation to corruption is increasingly negative. Detection and awareness of foreign bribery are among Iceland’s weaknesses, as the OECD has pointed out.

Iceland has recently made some improvements on the issue of human trafficking and was moved to category one again in 2022, meaning it fulfils the basic requirements regarding human trafficking according to U.S. legislation and international human rights conventions. Material in three languages on detection of human trafficking was published, an information portal was opened, and more victims have been identified. However, convictions of traffickers are rare, and appropriate assistance for victims is lacking. Although funding has increased, it is still very limited.

Iceland should show initiative to promote constructive discussions about hate speech and marginalized groups with the government taking the lead. The lack of tolerance manifested in the attitudes towards these groups and the positions of many marginalised groups need to be taken seriously. This includes people with mental disorders and disabilities, people of foreign origin, and children of asylum seekers. Lack of convictions in cases of violence, gender-based violence, and sexual offences robs people of rights that the legislature must guarantee. Assessment and improvement of the situation of children and people with disabilities, including those seeking asylum in Iceland, is crucial. Appropriate training on human trafficking should be provided to all actors, especially in those professions that are most likely to interact with and identify potential human trafficking. Implementation of humanitarian laws should be at the forefront, and more education within the judiciary is necessary, as well as in other state-run institutions with decision making power. As the most peaceful country in the world, Iceland should be the voice of peacebuilding. Ensuring transparency throughout the administration and being a role model when it comes to corruption should also be government priorities. The government needs to ensure that weapons that pass through Iceland do not violate the obligations of the UN arms trade agreement and other International Humanitarian Law (IHL) related international agreements to strengthen the IHL framework and promote further peaceful settlements.

Recommendations to the Government

Iceland should:

• make a peace policy plan that tackles hate speech and violence on a national and international level.
• communicate basic knowledge about the UNSC no. 1325 Resolution on Women, Peace, and Security to the public.
• protect undocumented children and marginalised groups seeking shelter and ensure that international treaties and humanitarian laws are always respected.
• tighten arms control legislation.
• ensure transparency in all its work and strengthen anti-corruption measures.

SDG17

Iceland participates proactively in international relations and actively defends the multilateral system, human rights, and the rule of law. The 2030 Agenda, the Paris Agreement, human rights, and gender equality are the cornerstones of Iceland’s foreign policy and international development cooperation. 

Main achievements

In 2022, a new cooperation platform named Sustainable Iceland was established to accelerate actions to achieve the SDGs and Iceland’s wellbeing priorities with a whole-of-government approach and multi-stakeholder engagement.

Iceland’s Policy for International Development Cooperation aims to reduce poverty and hunger and promote general well-being based on human rights, gender equality, and sustainable development. The SDGs Fund was established in 2018 with the objective of fostering partnership projects aimed at strengthening sustainable economic growth in developing countries.

Iceland uses a country-owned results frameworks and planning tools by providers for all of its development cooperation.

It’s important to strengthen trade relations and increase investments in developing countries. Since 2018 most goods imported and originating from LDCs have free access to the Icelandic market without customs, duties, or quotas. Iceland has also focused on putting gender equality on the agenda within international trade.

Iceland will continue to support international partnerships and cooperation with civil society actors, the private sector, academia, and other stakeholders.

Main challenges

Iceland still falls short on the UN target for developed countries to provide development cooperation amounting to 0.7% of GNI to ODA. In 2022, Iceland contributed 0.35% of GNI to ODA. The government aims to gradually increase Iceland’s contribution to ODA.

Domestically, Iceland still does not have a national policy for sustainable development. However, the newly established cooperation platform of Sustainable Iceland has started the process of drafting a national policy.

Next steps

• A new Policy for International Development Cooperation for 2024-2028 will be submitted to the Parliament before the end of this year.
• A national strategy for sustainable development will be submitted to the Parliament next year. 

Iceland has not yet met the UN target of spending 0.7% of GNI on development cooperation, which has been its target for over 50 years. This goal must be met, especially given the fact that a low percentage of Iceland’s GNI goes to national defence. In fact, international development cooperation is said to be an important link to Iceland’s national security policy. The government must also ensure that funds find their way into the right hands and do not remain domestically. Enforcing the rules and policies established must be at the forefront.

Iceland has succeeded in terms of placing a clear emphasis on gender equality in its development cooperation, with over 89% of contributions having a gender equality angle. Human rights, sustainable development, and environmental issues should be better addressed. With the establishment of the Icelandic Sustainability Council at the end of 2022, authorities took a big step. This hopefully be a positive move towards a more sustainable Iceland and spark a more active dialogue among and cooperation from all ministries, representatives of parliamentary parties, municipalities, trade associations, workers, and civil society through extensive consultation on sustainability. It is important that Iceland advocates for the human rights of all groups in society. Therefore, a good dialogue and cooperation with civil society and NGOs must be ensured. The Green Paper on Human Rights published in 2023 is an example of how Iceland can engage in such a dialogue. This should be the way forward, so that such involvement can be ensured by all concerned. It is enormous importance to maintain and improve transparency and accountability of the government to have further impact in all sectors of society.

Iceland has placed a focus on private partnerships and north-south cooperation. Further strengthening its focus on innovation in relation to the SDGs could achieve even greater results, but it cannot come at a price of declining funds to NGOs.

Iceland should further communicate the SDGs in cooperation with NGOs and increase and strengthen government cooperation with civil society in general. Iceland, due to the current global defence situation, should focus on meeting the target of 0.7% GNI for development cooperation. Iceland should become a strong advocate for global partnership for sustainable development.

Recommendations to the Government

Iceland should:

• emphasise reaching its goal of a 0.7% GNI for international development cooperation according to the UN targets for developed countries.
• ensure that relevant parties are consulted when working on policies or improvements.
• promote dialogue and cooperation with civil society and NGOs.
• ensure transparency and monitoring of value-based partnerships in private partnerships.
• continue to promote universal, rule-based, open, non-discriminatory, and equitable multilateral trading systems under the World Trade Organization and market access for the least developed countries.