Energy Transition in Transport in Iceland

Parliamentary resolution on energy transition [in Icelandic] in on-land and offshore transport was approved by Althingi on May 31, 2017. The resolution proposes an action plan to increase the share of domestic renewable energy sources at the expense of imported fossil fuels. The energy transition will result in increased energy efficiency and energy security, as well as a reduction in foreign currency expenses and greenhouse gas emissions.

The objective of the energy transition is to increase the share of renewable energy in on-land transport from 6% in 2016 to 10% by 2020 and 40% by 2030. An additional goal is to increase the share of renewable energy in the fisheries sector from 0.1% in 2016 to 10% by 2030.

Economic incentives and concessions will encourage consumers and businesses to choose renewable energy options. Development of infrastructure, such as charging stations outside urban areas, will support the transition. Increased energy efficiency of fuel, whether it is fossil or renewable, will contribute to energy savings.

The action plan involves further measures e.g. co-operation and research, development, innovation and international cooperation, cf. Parliamentary Resolution No. 18/146 [in Icelandic].