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Economic Aspects | Natural Resource Aspects | Institutional Aspects | Social Aspects |Iceland
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Decision-Making: Coordinating Bodies
The Ministry for Foreign Affairs is responsible for international trade issues and for development aid. International relations and cooperation is generally the task of the central government.
Decision-Making: Legislation and Regulations
Iceland is a member of the WTO and has undertaken
and put into law the obligations resulting from that membership.
Decision-Making: Strategies, Policies and Plans
See under Programmes and Projects
Decision-Making: Major Groups Involvement
Programmes and Projects
Iceland participates in the Nordic Development
Fund, financing projects in developing countries and in the Nordic Environment
Finance Corporation (NEFCO), a risk capital institution financing environmental
projects in Central and Eastern Europe.
ICEIDA has for many years provided ODA to some
southern African countries in managing their living oceanic resources and
determining the sustainable yield of fisheries resources in their waters.
Fisheries scientists from Africa have been trained in Iceland for this
purpose. ICEIDA
supports SADC co-operation units in marine and inland fisheries.
Among the goals of these units is to secure the sustainable harvesting of
fish resources.
Status
The Icelandic Government
decided in 1998 to triple its contributions to bilateral aid over a period of 5
years. Multilateral ODA is also
increasing slightly, mainly due to participation in more international
organizations. Iceland has decided
to take full part in the HIPC initiative despite the fact that Iceland is not
and has never been a lender to poor developing countries.
Iceland is a party
to the recent Nordic Strategy for Sustainable Development. It also takes part in
Baltic 21, an Agenda 21 for the Baltic Sea Region. The Icelandic International Development Agency handles
co-operation between Iceland and developing countries. Iceland participates in
IDA and the Nordic Development Fund.
Challenges
No information available
Capacity-building, Education,
Training and Awareness-raising
The United Nations University's Geothermal Training
Programme (UNU GTP) has operated in Iceland since 1979, under the auspices of
the National Energy Authority. Its goal is to assist developing countries with
significant geothermal potential to build up or strengthen groups of specialists
that cover most aspects of geothermal exploration and development. This is done
by offering six months specialized courses for professionals who have minimum of
one year's practical experience in geothermal work in their home countries. The
UNU Fisheries Training Programme is also located in Iceland since 1997, offering
six months of coursework and training working professionals in developing
countries.
Information
The Icelandic WWW-sites most relevant for
multilateral cooperation are: ICEIDA:
http://brunnur.stjr.is/interpro/utanr/thssi.nsf/pages/iceida
UNU Geothermal Training Programme: http://www.os.is/unugtp/index.html
Research and Technologies
Financing
The annual ODA of Iceland in the last years has
been just over 0.1% of GNP. About one third (approx. 2.5 million USD) of the
State contribution goes to bilateral aid, which is administrated by the
Icelandic International Development Agency (ICEIDA). ODA has increased in recent
years and it is government policy to increase it further.
Cooperation
Iceland is an active member of the ICES and other international bodies to protect the marine living resources and secure their sustainable utilization. ICEIDA is providing support to developing countries in Africa in fisheries biology and fisheries management. Presently ICEID is engaged in development cooperation with three countries in Africa; Malawi, Namibia, and Mozambique. Also, a long-standing cooperation with Cape Verde is being phased out.
Iceland supports debt reduction for the poorest countries as part of the
policy to enable them to build a sustainable economy. Iceland’s contribution
to the HIPIC initiative is expected to be approximately US $3million.
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This information was provided by the Government of Iceland to the fifth, eighth, and ninth sessions of the United Nations Commission on Sustainable Development. Last Update: February 2001.
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Decision-Making: Coordinating Bodies
The Ministry for Foreign Affairs is responsible for international trade issues and for development aid. The Ministry of Industry and Commerce is responsible for issues concerning foreign investment.
Decision-Making: Legislation and Regulations
Iceland is a member of the WTO and has undertaken and put into law the
obligations resulting from that membership.
Comprehensive legislation reflecting the environmental and economic character of the country - using environmental impact assessments very similar to those in the EU - plays an important role in regulation of planning procedures for industrial and power developments. This legislation offers clear principles for arbitration, simplified licensing procedures and benefits for the environment, for Iceland and for developers alike. Environmental policy does not serve to deter investment, but rather to harmonize it along progressive and imaginative lines, by co-operation between environmental authorities and developers.
Decision-Making: Strategies, Policies and Plans
No information is available
Decision-Making: Major Groups Involvement
No information is available
Programmes and Projects
No information is available
Status
Iceland is highly dependent on international trade. Iceland trades primarily with Europe and North America. However, Iceland has taken steps to increase trade relations with the developing countries and the countries with economies in transition. Iceland's imports from the developing countries in Asia, Africa and Latin America exceed its exports to these countries. The main products imported from developing countries are fruit and textiles, and there are no customs duties or other charges levied on them.
Iceland has stressed the importance of linking international trade and environment. In this work, particular emphasis should be placed on:
- encouraging trade practices which are consistent with environmental conservation;
- ensuring that unjustifiable, arbitrary or unilateral trade restrictions are not applied to further obscure environmental objectives;
- adjusting the international trading system to the needs of the developing countries; and
- building win-win-win strategies that bear positive results for trade, environment and sustainable development.
Iceland has in the various fora, including the CSD, WTO and FAO, drawn attention to the importance that the global market be conducive to sustainable fisheries. In particular Iceland has noted how trade restrictions and government subsidies distort trade, hamper sustainable development and undermine the possibilities for effective conservation and sustainable utilization of fish stocks.
Many fisheries subsidies contribute to fisheries overcapacity and thereby over fishing. Also, the encouragement of the use of fisheries resources beyond normal economic rates of exploitation creates supply distortions that place downward pressures on world seafood prices and this affects the ability of all countries, but particularly developing countries to achieve adequate economic returns from their fisheries resources.
Given the fact that the industrialized countries are responsible for the bulk of the subsidies granted to the global fisheries sector, the negative trade distorting effects of these subsidies affect first and foremost the fish-exporting developing countries. The removal of these subsidies would therefore benefit the developing countries most and their prospect of sustainable development.
Challenges
No information is available
Capacity-building, Education, Training and Awareness-raising
No information is available
Information
Information related to trade, investment and economic growth is made available to potential users through publications, by request and through the Internet by Statistics Iceland, the National Economic Institute, the Trade Council of Iceland and by Invest in Iceland Bureau. The World Wide Web Sites of these are the following:
- Statistics Iceland: http://www.statice.is
- National Economic Institute: http://www.ths.is/eng/english.htm
- Trade Council of Iceland: http://www.icetrade.is
- Invest in Iceland Bureau: http://www.invest.is
- The Foreign Ministry of Iceland: http://www.utn.stjr.is
- ICEIDA: http://brunnur.stjr.is/interpro/utanr/thssi.nsf/pages/icei
Research and Technologies
No information is available
Financing
No information is available
Cooperation
Iceland reports on issues related to trade, investment and economic growth to various intergovernmental bodies, including the UN Statistical Division, UN-ECE, WTO, IMF, IBRD, OECD and EFTA.
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This information was provided by the Government of Iceland to the fifth and eighth session of the United Nations Commission on Sustainable Development. Last Update: January 2000.
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Decision-Making: Coordinating Bodies
The Ministry of Environment is the body mainly responsible for this topic. Consumer affairs are the responsibility of the Ministry for Industry and Commerce.
Decision-Making: Legislation and Regulations
Several economic instruments have been used to promote recycling of solid wastes. The return rate of beverage containers was over 70% in 1993. Fees on single-use plastic shopping bags have also been introduced. There are special charges levied on commercial enterprises for waste collection on the basis of nature and quantity. This provides an incentive for commercial establishments to reduce waste (such incentives do not apply to households which pay a flat fee).
A new law was being prepared in 1993 to improve the collection, disposal and recycling of scrap-metal. The law will, among other things, introduce deposit-return fees on automobiles to encourage more environmentally sound disposal of outdated vehicles.
Since 1993,Environmental Impact Assessment has been, by law, an integral factor in physical planning (EIA Law 63/1993), Pollution Control Regulations have been implemented, and a standard for environmental management systems has been developed. Polluting industries are required to obtain individually designed operating licenses. The companies are inspected regularly.
The national environmental strategy, Towards Sustainable Development (1993), emphasizes that environmental problems should be resolved at source and by adopting sustainable consumption and production patterns. Several actions that will be initiated within the Action Plan for Sustainable Development in Iceland, which is expected to be adopted in early 1997, will promote more sustainable consumption and production. Indicators most commonly used to assess the change in production and consumption patterns are natural resource management and the state of natural resources, waste generation and release of pollutants to the environment.
Decision-Making: Strategies, Policies and Plans
No information is available
Decision-Making: Major Groups Involvement
No information is available
Programmes and Projects
A new initiative has recently started as a pilot project involving the Ministry for the Environment, the Technological Institute of Iceland and a number of NGOs. This project is aimed at changing consumer behavior.
Status
In 1994, Iceland began the process of taking the following additional measures to achieve the objectives of Agenda 21 in this area:
- to pass a green tax reform to promote the adjustment of consumption,
sectoral developments, and economy as a whole to the principles of sustainable
development;
- to increase application of selected economic and market instruments;
- to change Government administration and institutions policies and daily
operations;
- to make eco-auditing part of the management in the businesses;
- to encourage businesses to integrate environmental policies into their
management policies and make environmental education part of their staff
training policies; and
- to allocate more money to research and development in the areas of cleaner
technology, recycling, waste disposal, pollution control and sustainable natural
resource management.
By 1996, several actions had been taken in accordance with this plan. For instance, the Government has designed a special plan for "greener government", new economic instruments have been designed and are about to be implemented, and EU's Council regulation on Eco-Management and Audit Scheme (EMAS) was adopted in 1996 and is being implemented.
Challenges
No information is available
Capacity-building, Education, Training and
Awareness-raising
Measures have been taken within both the education system and businesses to raise public awareness. Iceland participates in the Nordic eco-labeling scheme. In accordance with the Act on the Obligation of the Government to Provide the Public with Information on Environmental Affairs, the Government of Iceland Iceland publishes a report on the state of the environment annually.
Information
No information is available
Research and Technologies
No information is available
Financing
No information is available
Cooperation
No information is available
This information was provided by the Government of Iceland to the fifth
session of the United Nations Commission on Sustainable Development. Last
update: April 1997.
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Decision-Making: Coordinating Bodies
No information is available
Decision-Making: Legislation and Regulations
A law adopted in 1996, introducing environmental fees on hazardous materials to finance the collection of hazardous waste (amended since to include new types of hazardous waste) has succeeded in increasing the recycling and safe disposal of hazardous waste. Several economic instruments have been used to promote recycling of solid wastes. The return rate of beverage containers was around 86% in 1996, thanks to a return fee on used containers. Fees on single-use plastic shopping bags have been introduced, with the proceedings going to a special Environmental Fund, which finances projects in afforestation, environmental education etc.
There are special charges levied on commercial enterprises for waste collection on the basis of nature and quantity. This provides an incentive for commercial establishments to reduce waste. Such incentives do not apply to households at the present time, but some municipalities plan to introduce waste collection fees in the coming years.
Differentiated import levies are used to promote the use of lighter and more efficient cars and import levies on electric and other non-polluting vehicles was lowered in 1998. A differential tax favoring unleaded petrol helped phase out leaded gasoline, which is not sold anymore in Iceland.
The use of subsidies, including in the agricultural sector, has been substantially reduced in recent years. The environmental impact of subsidies has not been estimated.
Decision-Making: Strategies, Policies and Plans
No information is available
Decision-Making: Major Groups Involvement
No information is available
Programmes
and Projects
No information is available
Status
No information is available
Challenges
No information is available
Capacity-building,
Education, Training and Awareness-raising
No information is available
Information
Information about the Environmental Fund, financed by the sale of single-use plastic bags, is found at: http://www.umhverfi.is A 1996 report outlining the use of economic instruments for environmental policy in theory and practice can be accessed at the website of the Ministry for the Environment: http://www.stjr.is/umh.
Research
and Technologies
No information is available
Financing
No information is available
Cooperation
The aim of Iceland's ODA policy is to improve the living conditions of the poorest, especially women and children. Emphasis is placed on co-operation with the least developed countries. Assistance is primarily given in areas in which Icelanders have special knowledge and experience and which can be transferred by teaching and training. The aim is to assist people to become more self-sufficient and to promote sustainable development, protection of the environment and natural resources, increasing productivity as well as equality of individuals, democracy and human rights.
From 1992 to 1993, the Government of Iceland increased its development assistance by 20%, reaching 0.13% of GNP in 1993. The goal is 0.7% of GNP, but due to the stagnant economy, Iceland has not been able to reach it. The increase was limited to bilateral development assistance which increased by 45%, while multilateral assistance remained the same. Further increase has not been materialized.
Bilateral aid is provided by the Icelandic International Development Aid Agency (ICEIDA), mostly under programmes related to natural resources, e.g. research, education, and training in fisheries. Furthermore, Iceland participates in the Nordic Development Fund. Iceland also supports the Nordic Environment Finance Corporation (NEFCO), which provides financial assistance to environmentally favorable projects in Central and Eastern Europe.
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This information was provided by the Government of Iceland to the fifth and eighth sessions of the United Nations Commission on Sustainable Development. Last update: January 2000.
Click here to access Iceland's Ministry of Finance.
For information on participating States in the Global Environment Facility, click here:
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Decision-Making: Coordinating Bodies
No information is available
Decision-Making: Legislation and Regulations
No information is available
Decision-Making: Strategies, Policies and Plans
No information is available
Decision-Making: Major Groups Involvement
No information is available
Programmes
and Projects
No information is available
Status
The concept of Environmentally Sound Technologies (ESTs) is not generally in use in Iceland. In industry, especially new energy-intensive industry, there has been an emphasis on demanding the Best Available Technology (BAT) with regard to pollution control. There have also been government programmes on integrating "Cleaner Production" methods in industry, especially in the fish and food industries.
ISO 14000 has been introduced in Iceland.
Challenges
No information is available
Capacity-building,
Education, Training and Awareness-raising
The Geothermal Training Programme of the United Nations University was established in Iceland in 1979, and it is run by the National Energy Authority of Iceland. The aim of the programme is to assist in building a cadre of specialists in the geothermal departments of developing countries. The programme trains approximately 16 students per year. A programme for fisheries with the UN University is now being prepared and will begin in 1998.
Information
No information is available
Research
and Technologies
No information is available
Financing
No information is available
Cooperation
In recent years, ICEIDA, the Icelandic International Development Aid Agency, has concentrated its aid to biological research on fish resources of the developing countries and on experimental fishing of under-exploited species. At present, ICEIDA cooperates with Namibia, Malawi and Cape Verde. Since 1992, the assistance granted to these countries has amounted to some US$ 7,1 million. Technical assistance has also been focused on fisheries.
Iceland has also increased its assistance to the economies in transition through cooperation for capacity-building. A special relationship has been formed with the three Baltic States. Iceland has established a US$ 1 million payment facility for them and provided training for the nationals of these countries, including the award of grants to study at the University of Iceland. In cooperation with the business community, business management and training possibilities have been provided.
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This information was provided by the Government of Iceland to the fifth and sixth sessions of the United Nations Commission on Sustainable Development. Last update: April 1998.
BIOTECHNOLOGY
Decision-Making:
Coordinating Bodies
No information is available
Decision-Making: Legislation and Regulations
The Ministry of Environment is responsible for the legal and policy issues related to biotechnology. The competent authority is the Food and Environment Agency. New legislation was adopted in early 1995 to promote biotechnology safety mechanisms and procedures.
Decision-Making: Strategies, Policies and Plans
No information is available
Decision-Making: Major Groups Involvement
No information is available
Programmes
and Projects
No information is available
Status
No information is available
Challenges
No information is available
Capacity-building,
Education, Training and Awareness-raising
No information is available
Information
No information is available
Research
and Technologies
Research and development in the field of environmentally sound biotechnology is carried out by the Technology Institute and by the Iceland Council of Science, which also seeks to enhance biotechnology research through competitive research grants
Financing
The financial support allocated to biotechnological research is approximately US$ 730,000 annually (1994). In the Technology Institute, the budget for biotechnology for 1991 was US$ 228,500.
Cooperation
No information is available.
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This information was provided by the Government of Iceland to the fifth session of the United Nations Commission on Sustainable Development. Last update: April 1997.
Click here to go to the Web Site of UNEP's International Register on Biosafety.
Click here to link to biosafety web sites in the European Union.
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Decision-Making: Coordinating Bodies
No information is available
Decision-Making: Legislation and Regulations
No information is available
Decision-Making: Strategies, Policies and Plans
No information is available
Decision-Making: Major Groups Involvement
No information is available
Programmes
and Projects
No information is available
Status
ISO 14,000 has been introduced. A number of individual companies have implemented an environmental management system and introduced cleaner production processes, for example, in the fish and printing industries.
Challenges
No information is available
Capacity-building,
Education, Training and Awareness-raising
No information is available
Information
No information is available
Research
and Technologies
In industry, especially new energy-intensive industry, there has been an emphasis on demanding the Best Available Technology (BAT) with regard to pollution control. There have also been government programmes on integrating "Cleaner Production" methods in industry, especially in the fish and food industries.
Financing
No information is available
Cooperation
No information is available
* * *
This information was provided by the Government of Iceland to the fifth and sixth sessions of the United Nations Commission on Sustainable Development. Last update: April 1998.
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Decision-Making:
Coordinating Bodies
The Ministry of Communications and Transport.
Organizations under the supervision of the Ministry dealing with transport are:
the Public Road Administration; the Icelandic Maritime Administration; and the
Icelandic Civil Aviation Administration.
Decision-Making: Legislation and Regulations
The main laws regarding transport are: The 1994 Public Roads Law;
the 1991 Law on the Icelandic Maritime Administration; the 1998 Aviation Law;
and the 1987 Law on Airport Construction. The effect of the Rio Summit and its
decisions on transport can be seen for example in that most transport projects
now undergo EIA.
A new law was being prepared in 1993 to improve the
collection, disposal and recycling of scrap-metal. The law will, among other
things, introduce deposit-return fees on automobiles to encourage more
environmentally sound disposal of outdated vehicles. Iceland follows
emission standards set in the European Economic Area. Lead in gasoline has been
phased out in Iceland, partly thanks to a tax measure favoring the use of
unleaded gasoline. Import levies have been lowered on vehicles with low or
zero-emission engines (such as electric, hydrogen fuel cell or
"hybrid" engines) in order to create greater incentives for their use.
Decision-Making: Strategies, Policies and Plans
Four-year plans are made for construction and repair of roads,
harbors and airports, and they are reviewed every two years. The plans are
drafted under the auspices of the Ministry for Communications and its
specialized agencies, in consultation with municipalities, Members of
Parliament, public and private stakeholders. The drafting of transport-related
legal bills is also done in extensive consultation with all major stakeholders.
Work has started on an integrated transport plan for Iceland, combining
current plans for roads, harbors and air traffic.
According to a long-term plan for road transport, it is considered
that in the period 2005-2010 all parts of Iceland will have reached the stage of
having adequate modern road infrastructure. There will still be isolated local
problems of inadequate transport services, and the capital urban area will still
need an upgrade in infrastructure to deal with the growth of traffic.
There are already differentiated import levies which promote the use of
lighter and more efficient cars and a differential tax favoring unleaded petrol.
Due to these levies, leaded petrol is practically not used any more.
Decision-Making: Major Groups Involvement
Decisions regarding roads and airports are made at the national
level. Work relating to harbors are a joint responsibility of the national
government and municipalities and local governments as a general rule initiate
proposals for work relating to harbors. All
government funding for transport has to be agreed upon by the Parliament, where
groups and individuals can bring their opinion into the debate. The law on
environmental impact assessment ensure that everyone can make suggestions
regarding major individual transport projects.
The interests of the fishing industry is a prime concern
in decision-making on harbors. The building and operation of Iceland's main road
tunnel is privately run, while the tunnel will in due time be handed over to the
government. It is foreseen that the private sector will get an increasing role
in the transport sector in coming years, although decision-making will continue
to be a role of the government.
Programmes and Projects
There are programmes to increase safety of seamen and
road traffic safety. Many of the above concerns will be integrated in the
overall transport strategy to be adopted next year. According to
law, 1% of government funds for road construction and other transport projects
goes to research and development in that field. Over 100 projects in this field
are launched each year.
Status
There has been a great influx of people to the
capital area from other parts of the country in recent decades. This creates a
twofold need for improved transport systems. The capital region needs to invest
in improved roads and transport infrastructure to deal with growing population
and traffic. Meanwhile, it is understood that
a key government priority is to help secure settlement in rural areas.
Better road and tunnels can connect small villages with each other and with
bigger population centers, thus improving access to services and create a bigger
market for jobs and goods. A big increase in tourism in Iceland also creates
pressure for better transport.
The fact that Iceland is sparsely populated, with a rugged terrain,
means that there is a need for a proportionally greater transport infrastructure
than in countries more densely populated. The road system has improved greatly
in recent years and decades. There is, however, still great demand for the
improvement of the system, especially for improved roads and new road tunnels.
The improvement of roads has resulted in a diminished role of internal aviation,
although air travel is still crucial for many areas. Overall, it can be said
that the current transportation system in Iceland is efficient, although there
is pressure for its improvement.
In the year 2000, the government doubled its financial
contribution to public transport as a measure to reverse the trend of citizens
relying more on private transportation verses public.
The transport sector is responsible for about one-third of
carbon-dioxide emissions in Iceland. Air pollution in Iceland is generally
minimal, although there is some local air pollution in the capital area. Local
air pollution is mainly due to cars and other vehicles, as stationary energy is
produced by clean and renewable sources (hydro and geothermal power).
Challenges
Road transport is by far the most used mode of transport in Iceland
followed by domestic air transport and transport at sea is third. There is
continuing pressure to improve the efficiency of road transport. All major road
construction is subject to Environmental Impact Assessment, hence there is
limited damage to eco-systems. It
is illegal to drive off the road
especially in areas with fragile vegetation but, monitoring is difficult due to
large uninhabited area in Iceland. Domestic
shipping transport has declined in the last decade, with only 10 harbors served
by domestic shipping, compared with almost 40 a decade ago. Possibilities of
halting this trend are being studied, as shipping is considered to be less
polluting than other types of goods transport.
The rugged terrain and sparse settlement in Iceland are obstacles
to building railways in Iceland, and make the construction and upkeep of
transport infrastructure costly. The population shift from rural to urban areas
creates pressure on traffic infrastructure in and around Reykjavik. The
spread-out layout and low population density of the Reykjavik metropolitan area
has been cited as an obstacle to developing a more efficient public
transportation system. Practically
all stationary energy in Iceland is produced from clean and renewable sources,
so mobile sources (vehicles and the fishing fleet) account for about two-thirds
of emissions of greenhouse gases and most polluting air emissions. Iceland
relies on imported technology for the engines of vehicles and fishing ships,
which means that limited progress can be made in those fields through domestic
policy making, although there are programmes to encourage the use of alternative
low or non-polluting fuels.
Declining
services in public transport would primarily affect the young and the elderly.
Capacity-building, Education, Training and Awareness-raising
The Ministry for the Environment, in cooperation with car importers
and the Car Owners Association, sponsors a programme to publish and disseminate
information on car mileage and pollution, that is available at car sales.
The use of public transport has been declining in recent years.
Public authorities have strived to halt this decline to ensure that certain
groups (young people and the elderly) enjoy adequate transportation service.
Information
No information is available
Research and Technologies
With
regard to different means the government can use in the energy, transport and
industry sectors to protect the atmosphere, Iceland prefers the use and
development of safe technologies, research and development relating to
appropriate methodologies, modernization and rehabilitation of power systems,
development of new and renewable energy systems, use of endogenous technologies
and raising public
Icelandic
authorities have sponsored a joint venture, which will explore possibilities for
using hydrogen as a fuel for vehicles and fishing ships. Another programme,
sponsored by local authorities in Reykjavik, runs vehicles on methane gas
collected from a landfill. Import tariffs favor non- and low-polluting engines
and vehicles. The has developed transportation technologies and considered
the relative cost-effectiveness of alternative energy systems. The Government
Working Group addressing this issue has submitted policy proposals which will be
included in the National Agenda 21 (National Programme of Action).
Financing
A special tax on fuel is used to finance road construction and
improvement. Harbor projects are financed 70% by government funds. Total
government expenditures for transport and transport-related projects amount to
almost 12 billion ISK, which is almost 6% of government expenditures.
Cooperation
Iceland participates in the planning phase of TEN-transport in the
European Union. Iceland is party to a number of aviation-related agreements, and
is an active member of IMO.
* * *
This information was provided by the Government of Iceland to the fifth and ninth sessions of the United Nations Commission on Sustainable Development. Last update: February 2001.
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No information is available.
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