Iceland is committed to a target of 55% net reduction of greenhouse gas emissions by 2030 compared to 1990 and carbon neutrality by 2040, acting jointly with the European Union and its Member States and Norway to achieve this target, within the framework of their climate cooperation agreement (Iceland NDC, 2021). In order to achieve these goals, their action plan is embedded in three key policy frameworks: EU-ETS (aviation and heavy industry), binding targets for non-ETS emissions and LULUCF.
The previous Action Plan stated 48 mitigation plans to address economy-wide emissions. Currently, the Industry sector is the biggest emitter. The actions to mitigate emissions include incentives, tax, ban, investment in renewables, carbon capture and climate fund (Iceland Climate Action Plan, 2020)