To better integrate planning and management of land resources, the Government of Iceland has developed policies and policy instruments, raised public awareness, enhanced scientific understanding of the land resources system and strengthened technological capacity.

More measures still need to be taken to strengthen information systems, to test research findings, to improve education and training in this field, and to strengthen institutional capacity and international and regional cooperation.

Forests in Iceland consist mainly of small areas of birch woodlands or plantations of native or exotic species, covering only 1.4% of the total land area. At the time of settlement (AD 876), forests covered about 30% of Iceland, which means that 95% of the original forest cover has been lost.

The number of people earning their living from the forestry sector has increased since 1980 from 40 to 50 people. National income from the forestry sector has been approximately US$ 1,000,000 since 1980.

The number of professional staff working in the Iceland Forest Service has increased from 18 in 1990 to 25 in 1995 due to increased emphasis on research and planning. Nevertheless, there is still a lack of qualified staff and research capacity in Iceland due to inadequate funding. Because of this, there is little information available about the annual loss or natural regeneration of forests. The total area of birch woodlands seems not to have changed much between 1975 and 1990. Traditional agricultural practices (grazing) are the primary cause of forest loss. About 11 km2 are afforested annually through planting.

Many actions have been taken to improve the effectiveness of afforestation, forest productivity and tolerance to environmental stress. These include research in tree improvement, forest pathology and ecology, establishment of seed procurement networks, improvements in plant production technology, increased forestry planning and establishment of specific afforestation programs.

Before Rio, the Government had partly reviewed research needs, initiated afforestation programs and emphasized improving awareness, appreciation and management of forests with regard to their multiple roles and values. Other issues addressed in part by then included land classification and land-use surveys. After Rio, the range of issues addressed widened to analysis of existing programs and to collection of geographic information on forests and ecotourism.

Issues that still need to be addressed or improved include: establishment of concrete long-term afforestation goals, education in forestry, remote sensing, establishment of information exchange linkages, investment analysis and feasibility studies, promotion of small scale forest based industries and integration of the social, economic and ecological values of forests in the national economic accounting systems.

International Convention to Combat Desertification in Countries Experiencing Drought and/or Desertification

Particularly in Africa

Ratification process has started and will be completed in 1997.

Additional comments relevant to this chapter

According to a survey completed in 1996, about 40% of Iceland, or 40.000 km2, falls under the desertification definition of the convention, despite ample rain. Desertification is mainly caused by the interaction of grazing effects, both past and present, with sensitive soils and vegetation. Grazing has in some cases been identified as having serious consequences. Measures are being planned to restrict livestock grazing to areas where it does not cause deterioration in the quality of the land. The government has encouraged a more conservative use of land by providing financial assistance and guidance. Other governmental activities include afforestation and the use of indigenous know-how and technology transfer.

The legal and policy instruments used by the Government to combat desertification are the National Soil Conservation Strategy (1991) and the Soil Conservation Law (1963), which is currently under revision. The Government aims at bringing soil erosion under control and achieving sustainable land use as soon as possible. Landowners, institutions and enterprises, as well as the society as a whole, share the implementation responsibility. The soil conservation authorities, mainly the Soil Conservation Service, will be given stronger capacities to manage and monitor grazing practices, protected areas threaten by erosion and to restore denuded land.

In addition to policy and legal instruments, efforts to improve environmental knowledge and education at all levels of the school system have begun. Special emphasis has been put on landcare. Media has been an important means to increase public awareness on this issue.

With a land area of 54,000 Km2, the central highlands is the most significant mountain area in Iceland. On the one hand, the highlands provide natural recources for agriculture, energy production and tourism, and are hence subject to related pressures, i.e. from animal grazing; from construction of hydro plants and of electricity transmission lines. On the other hand, the highlands constitute a fragile ecosystem. Problems arise with regard to the various objectives relating to nature conservation because property rights in the highlands are mostly undefined, and the 40 municipalities scattered around the island have interests in the area and/or claim traditional user rights. Therefore, an integrated management of the central highlands is needed. Currently, the physical land-use plans of the central highland of Iceland are being revised, and the estimated year of completion is 1997.

There are 90 hydrological monitoring stations which cover the mountain areas well. The most important rivers and their catchment areas are the following: the Thjórsá (6,320 Km2), the Jökulsá á Fjöllum (5,750 Km2), the Jökulsá á Dal (1,560 Km2), and the Hvítá (2,000 Km2). With regard to the watershed development policies in the area, there is a hydropower development project for the Thjórsár basin (US$ 1,500,000) and a hydropower planning project for the Jökulsár basin (US$ 500,000). A survey has been conducted on the ecology of the Thjórsárver, and an assessment of the impacts of a possible hydroelectric reservoir. A master plan for the development of Iceland's hydropower potential is being prepared. Under the plan, the environmental impacts of hydropower development will be taken into consideration through ranking of projects in terms of both financial viability and environmental considerations.

In Iceland, the level of crop production is extremely small, with agriculture being primarily concentrated on animal husbandry. The low level of crop production in turn reduces the use of fertilisers and pesticides as well as other pollution problems. Nonetheless, agriculture still has substantial impacts, both positive and negative, on nature conservation objectives.

During the last few years, cooperation between the authorities and farmers has had a positive effect on reducing grazing pressures. Overgrazing, however, still exists. While there has been a significant decrease in the number of sheep, the increased horse traffic causes concern in many areas. Solution will include a reduction in the number of horses by improving breed development strategies, awareness raising, management education and improved land use monitoring. Furthermore, areas of severe degradation will be protected from grazing and better link formed between land condition and livestock grazing.

The Government policy goal is that all Icelandic agriculture should meet the requirements of sustainable development, in particular with respect to soil erosion and other measures that prevent the deterioration of land condition, and soil water and ground water pollution. An action plan for sustainable development has been developed in co-operation with interested groups.

With regard to measures already taken to reach the objectives to promote sustainable agriculture and rural development, international trade relations have been reviewed in the light of agricultural production. A national programme is being developed to improve farm productivity while at the same time minimising ecosystem risks.

To improve data collection in the field of agriculture, databases are being established. EX SITU base collection network exists already. Breed plans have been drawn up for animal populations in danger and IN SITU preservation. A survey on the land degradation is being conducted. A land reclamation policy for degraded land has also been drawn up. Regarding the strengthening of the land-use and resource planning practices in rural areas, the government has set up a working group to address this issue. The institutional capacity for plant genetic resources (PGRFA) has been strengthened. Environmentally sound energy transition in rural communities has been completed as well as the transfer of technology to increase input to rural households.

Environmental education and training in land use system is being improved in the agricultural vocational schools.

Convention on Biological Diversity

Signed in 1992 and ratified 12 September 1994.

No report has been submitted.

Convention on International Trade in Endangered Species of Wild Fauna and Flora

Iceland is not a party to this convention.

Additional comments relevant to this chapter: Local populations of fauna and flora in Iceland are generally in good condition. There are no threatened mammal species. Iceland is particularly rich in bird life. The latest comprehensive baseline survey concerning biodiversity was conducted in 1995-1996.

Still, there are a few serious problems. Since the settlement of the country in the 9th century, approx. 80% of the country's vegetation and soil resources have been lost due to erosion and deterioration of the vegetative cover. Today, continuous vegetation covers only some 25% of the total land area, and birch forests and bushes only about 1%. As a result of major drainage and cultivation of wetlands during the past forty years, there are only a few undisturbed wetlands left in the lowlands, affecting the flora and fauna in these areas.

The flora and fauna are also endangered by genetic mixing with imported and cultivated species. This applies, in particular, to freshwater fisheries and, to a less extent, to some imported tree species and the seeding of land with lupins to combat erosion. In addition, habitat destruction, over-harvesting and inappropriate introduction of animals cause moderate fauna loss. The role of pollution is insignificant. Regarding the flora, the over-harvesting has caused serious losses, while the impact of habitat destruction and inappropriate introduction of foreign plants is moderate. Pollution is not a significant factor. A red list for plants has been issued by the Institute of Natural History and the red list for animals is under preparation.

In 1996, Iceland was preparing a national strategy on the conservation of biological diversity. For the sustainable management of marine and terrestrial resources, measures will be taken to restore and strengthen depleted fish stocks and to bring soil erosion under control. More national parks and protected areas will be established, especially in the wetlands, coastal areas, the central highlands and in other uninhabited areas having important ecological, scientific, educational and recreational values. Also new types of parks will be established, for instance, aquatic parks in the coastal areas. In 1990, 9% (9,264 km2) of the total land area was protected. A plan will be introduced to improve the management of these areas. Legislation is also being amended in order to better meet the provisions of the international conventions on biological diversity. For example, all populations of wild terrestrial mammals and birds are to be conserved, except where specifically indicated.

With regard to economic instruments, agrcultural subsidisation for drainage of wetlands has been abolished. Measures were also planned to be taken to enable the Nature Conservation Council to lease the management of protected areas to private organizations on condition that such organizations provide the required services and surveillance, and all developments in the area are approved by the Nature Conservation Council.

Three Icelandic wetlands, Lake Myvatn, Lake Thjórsárver and Grunnafjórdur Bay, have been selected to be sites of international importance in terms of ecology and zoology in accordance with the Ramsar Convention. The biodiversity of Lake Myvatn is threatened by diatomite mining, and the other Ramsar site, Thjórsárver, by energy development (dam building in river Thjórsá).

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. New legislation was adopted in early 1995 to promote biotechnology safety mechanisms and procedures.

The UN Convention on the Law of the Sea

Ratified on 21 June 1985.

See also the attached tables on the next pages.

Iceland has a national policy on oceans, and it will be integrated into the National Sustainable Development Action Plan currently under preparation.

Rich marine life is the most important natural resource Iceland has, and fisheries sector is the driving force of economic development. Any pollution, whether significant or perceived to be significant, would have disastrous consequences for fish exports. Comprehensive assessments of the state of the environment of coastal and marine areas have been carried out annually since 1989. In general, the situation has been stable. It is difficult to detect natural variations from anthropogenic impact. Radiation has declined from a level that was already quite low. Persistant organic pollutants (POPs) are considered to be the most serious problem, and Iceland feels that international action is needed for that. Prior impact assessment of all major activities is required by law, including the determination of the total allowed catch (TAC) level for all major fish stocks. To prevent, reduce and control the degradation of the marine environment from land-based activities, Iceland actively participates in the OSPAR and AMAP cooperation.

In recent years, the main task of the authorities and scientists has changed from that of assisting fishermen in seeking new fishing grounds or new species to exploit, to that of setting up a series of restrictions designed to ensure long-term sustainable utilisation of stocks. Special emphasis is laid on improving the scientific knowledge of the marine ecosystem and biota of living marine resources. Iceland participated in the UN Conference on Straddling Fish Stocks and Highly Migratory Fish Stocks (Agreement for the Implementation of the Provisions of the United Nations Convention on the Law of the Sea of 19 December 1982 Relating to the Conservation and Management of Straddling Fish Stocks and Highly Migratory Fish Stock) and signed the High Seas Agreement (The Agreement to Promote Compliance with International Conservation and Management Measures by Vessels Fishing in the High Seas) in November 1995. A new legislation for the management of high seas fisheries passed the Parliament in December 1996

Regarding living marine resources under national jurisdiction, Iceland participated in the negotiations of the FAO Code of Conduct of Responsible Fisheries.

So far, no economic incentives have been introduced to protect the marine environment. However, the government has made efforts to encourage and stimulate restructuring and rationalisation of the fisheries sector.

With regard to marine mammals, the overall policy of the Government of Iceland is that marine mammals should be conserved and managed subject to the same principle of rational utilisation that applies to other species of living marine resources.

To strengthen and develop information systems for decision-making, Iceland has developed socio-economic indicators and systematic observation systems. There is a mussel watch programme. Participation in the Global Ocean Observing System (GOOS) is being considered, and the following databases have been developed for integrated coastal management: 1) Monitoring DATA - Food and Environmental Agency; 2) Coastal and Inshore Area Environmental DATABASE - created as a basis for emergency response to the Food and Environmental Agency; and 3) Marine Research Institute's database for fish and other living reources as well as hydrography, partly linked with the database located at the headquarters of the International Council for the Exploration of the Sea (ICES).

Note: AMAP - Arctic Monitoring and Assessment Programme.

The greater part of Iceland's freshwater resources are clean, free from pollution and low in chemical contents. Freshwater resources for human consumption are mostly restricted to groundwater. The water is extracted from springs, boreholes and wells. In general, the groundwater is potable. Some springs are temporarily fed by infiltration from glacial rivers. Surface water, on the other hand, is frequently polluted by dirt and mud caused by rainstroms, snow-melt, and heavy erosion. Therefore, the construction of water wells must be approved by local health commissions, which also monitor regularly the quality of extracted waters, especially their bacterial contents.

Despite the generally healthy state of Icelandic freshwater resources, concerns are increasing because of the rapidly increasing demand of the food industry, growing urban settlement, increasing tourism, changing land-use practices in rural areas, increasing hydro and geothermal energy harnessing, and various infrastructure developments.

To meet these concerns, several measures have been taken: With regard to legal instruments, a new Law on Freshwater Protection has been prepared to ensure access to clean freshwater resources for human consumption and for use in industry. Rules regulating aquaculture have also been revised with the aim of improving the planning practices and the issuance of licences for such operations. The establishment and operation of aquaculture stations is allowed on the condition that they will not have an adverse impact on the ecosystem and biota of the water basin. Also, pollution control regulations have been tightened to meet European water quality standards.

Protection of extraction sites has been intensified, for example, through fencing. Demarcation of water protection areas has been integrated into regional physical planning.

There is no comprehensive master plan for the conservation and utilization of groundwater resources, rivers, lakes and geothermal areas in Iceland.

Legislation that establishes a framework for levying environmental fees on substances that can become hazardous in the waste stream was adopted in 1996. The aim of the legislation is to reduce the use of such substances and to finance a nationwide system for the collection of hazardous and toxic wastes.

Measures have also been taken to stop discharge of hazardous and toxic substances from industry and households into sewage systems.

Iceland is particularly concerned about marine pollution from persistent, toxic and bioaccumulating substances (persistent organic pollutants/ POPs), and supports the Nordic Action Plan to reduce the releases of these substances.

The Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal

Ratified in 1995

Additional comments relevant to this chapter

The amount of hazardous waste generated in 1994 was 5,900 tonnes. Sevety-two percent of the waste was from the use of petrol products and recycled as a fuel in cement factory. Fourteen percent of hazardous waste was exported for treatment in other OECD countries.

In 1991, the Government of Iceland adopted a national strategy for waste management. Hazardous wastes which cannot be dealt with properly in the waste receiving centre of the Reykjavik area or used in the cement factory are exported for disposal in hazardous waste treatment facilities abroad.

Since 1993, PCB use on marine applications (shipping) has been prohibited, and since 1994 its use in land has ceased in accordance with the Government Programme for the Systematic Collection of PCBs.

Agreement has been reached with the US-military base to the effect that the waste-receiving centre of Reykjavik now also receives and sees to the export of hazardous wastes from the US military base.

A system for the collection of environmentally hazardous batteries was established already in 1989, with annual returns of around 12% (1993). In the future, measures will also be taken to stop discharge into sewage systems of heavy metals, persistent organic pollutants and other hazardous and toxic substances from industry and households.

Note chapter 19 for more information.

Household and industrial solid wastes constitute 95% of Iceland's total waste. Approximately 12% of total household and solid industrial waste is recycled or prepared for recycling abroad, and more than 50% is disposed in an environmentally sound manner.

The adequacy of facilities for the treatment of household and industrial waste varies substantially between the Reykjavik area and other communities. Reykjavik constructed the first modern centre for receiving and handling waste. The centre serves close to 60% of the population of Iceland. Recently a number of other areas of the countries have established similar facilities for collecting waste for treatment from dispersed municipalities. Currently only a very limited number of local household and industrial waste is directed untreated to landfills and by open pit-burning.

The government adopted a specific national strategy for national waste management in 1991. The objective is to reduce waste generation by 50% before the turn of the century. To attain this goal, the government places special emphasis on changing production and consumption patterns. To this end, environmental education has a key role, and a task force on environmental education was established in 1993 to address this issue. According to the strategy, the waste management in municipalities will be enhanced.

Several economic instruments have been used to promote recycling of solid wastes. The return rate of beverage containers is over 70%. Fees on single-use plastic shopping bags have also been introduced. There are also 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. The legislation is still under preparation

The Government initiated in 1995 a ten-year plan for improving sewage treatment. Through this plan local communities can receive financial assistance from the Central Government for investments in facilities that improve the situation.

Iceland is concerned about activities in distant regions of the world which could lead to the release of radioactive substances into the sea, even though such substances would be very strongly diluted before they reached Iceland. At present, radioactivity levels of Icelandic waters are among the lowest in Europe.

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 favourable projects in Central and Eastern Europe.

CHANGES IN NATIONAL BUDGET TO ADDRESS SUSTAINABLE DEVELOPMENT: No information.

NEW ECONOMIC INSTRUMENTS: 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.

There are already differentiated import levies which promote the use of lighter and more efficient cars and a differential tax favouring unleaded petrol. Due to these levies, leaded petrol is practically not used any more.

In 1994, a new law was being prepared introducing environmental fees on hazardous materials to finance the collection of hazardous wastes. This legislation was adopted in 1996 and the implementation will begin in March 1997.

ELIMINATION OF ENVIRONMENTALLY UNFRIENDLY SUBSIDIES:

The use of subsidies, including in the agricultural sector, has been substantially reduced in recent years. The environmental impact of current subsidies has not been estimated.

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 which Icelanders have special knowledge and experience 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.

Bilateral assistance:
1992: 2.5 million USD
1993: 2.5 million USD
1994: 2.5 million USD
1995: 2.6 million USD
1996: 2.7 million USD

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.

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.

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.

MEANS OF IMPLEMENTATION:

R&D institutions in Iceland are organised by sectors under the Ministries of Agriculture, Fisheries, Industry and Trade, Health, Environment and the Ministry of Education, Science and Culture. Overall responsibility for the implementation of science and technology policy lies with the Ministry of Education, Science and Culture, which is assisted by the Icelandic Research Council (IRC), established in 1994. The eleven members of the IRC represent industry, research institutions and the university community.

Environmental policies in general are the responsibility of the Ministry of the Environment, while operations reporting to the sectorial ministries have to pay due environmental respect. Environmental issues are addressed both particularly at relevant institutes and generally through inter-sectorial environmental policies. Thus, e.g. research in marine biology also aims at facilitating sustainable management of marine resources, notably the fish stocks in the seas around the country. Similarly, research into natural processes in the earth, on land and in the atmosphere has the dual objective of being scientifically important and being significant in socio-economic context.

Public research institutes and institutions for higher education are called upon for advice in the decision-making process and formulation of policy for sustainable environment.

A significant change in the scale of R&D has occurred in recent years. R&D engaged about 1,310 man-years full time equivalent in 1993 and an expenditure of approximately ISK 5,570 million. or 1,4% of GNP. In 1987, this ratio was 0,79%.

About 70% of R&D is carried out in the public sector, including higher education institutions, while industrial and private sectors account for about 30%. The industrial share in R&D performance is increasing. Only 30 firms were registered active in 1987, but over 200 were active in 1993. The breakdown of public R&D expenditure by main socio-economic objectives included 26,5% on agriculture and fisheries; 19,5% on industry and energy; and 8,5% on the environment and natural resources not included under other headings. General knowledge production, including basic research as well as humanities and social sciences, counted for 27,9 % of the total.

STEPS TAKEN TO ENHANCE SCIENTIFIC UNDERSTANDING, IMPROVE LONG TERM SCIENTIFIC ASSESSMENT, BUILDING OF CAPACITY AND CAPABILITY:

The legislation concerning the IRC is due for revision in 1999 and environmental issues are a growing concern in general economic, as well as science and technology policies. The scientific capacity is continuously enlarged through the development of higher education institutions and an increasing number of well-educated scientists, not the least within sciences of environmental relevance.

a) Reorientation of education towards sustainable development

In Iceland, training teachers is considered to be the most important means to integrate sustainable development in education.

Developing teaching material is also important. Audiovisual material is used only occasionally.

The Ministry of Education issues national curricula guidelines to primary, secondary and vocational schools. The curricula at primary schools are being revised to address e.g. sustainable development. Measures are being taken to revise secondary schools and vocational schools curricula where this issue will also be addressed.

With regard to the topics dealt with at primary, secondary and vocational schools, environmental health, sanitation, food, and ecosystems are covered in part. The subject of energy saving has not been dealt with at primary school level and only in part at secondary and vocational schools.

b) Increasing public awareness: The schools in Iceland have several projects dealing with local environmental problems. The Icelandic media has reported about the best projects.

c) Promoting training: In Iceland, training teachers is considered to be the most important means to integrate sustainable development into education. There are pre-service and in-service courses for teachers at primary and secondary school levels.

ROLE OF MAJOR GROUPS: When planning educational material and curricula, the Government usually consults major group representatives.

FINANCING AND COST EVALUATION OF THE LABOUR ACTIVITIES: No information.

a Iceland's National Report to the CSD 1996.

National capacity building is also covered under sectoral chapters.

Donors: You may wish to describe here how Agenda 21 has influenced your ODA policies in this area.

Developing countries: You may wish to describe any new national mechanisms for capacity building - and any changes in technical cooperation.