Congestion charges must show drivers where money goes

It is reasonable that congestion and traffic charges have not yet been introduced in the capital region, because a comprehensive review of charges on traffic and vehicles is still under way, Þorsteinn R. Hermannsson, chief executive of Betri samgöngur, told mbl.is.

Þorsteinn spoke at the 2026 Transport Conference, held at the Hilton Reykjavík Nordica hotel on Wednesday, where he gave a presentation on charging in the capital region.

Congestion and traffic charges are a form of regional charging in which drivers pay to travel to or from specified areas. The revenue is used to finance transport in the relevant region, and the charge may vary according to the day or time. The aim is to reduce congestion and encourage people to use forms of transport other than private cars.

According to Þorsteinn, possible charging areas could be west of Kringlumýrarbraut, west of the Elliðaá rivers and north of Fossvogsdalur. These areas contain the largest workplaces and the most traffic delays, as well as the best public transport services.

He said the charges would be a useful addition. Similar systems introduced elsewhere in the Nordic countries had produced good results and offered a way to make better use of transport infrastructure that had already been built.

The charges could also provide a source of funding. However, he said, the additional revenue should be spent in the relevant region rather than disappearing “into some black hole”.

“A fundamental condition for people to accept the introduction of this kind of charge is that they can see and know what the money is being spent on,” Þorsteinn said.

Under the 2019 capital-region transport agreement, Betri samgöngur was intended to collect congestion and traffic charges if legislation authorised their introduction. There had been plans to introduce the charges in 2022, but that did not happen. The 2024 transport agreement deferred the project.

The charges could potentially be introduced in 2030, Þorsteinn said, but that remained uncertain.

He attributed the delay in Iceland to several factors, including the decision to carry out a comprehensive review of charges on traffic and vehicles. That process was still under way. A kilometre-based charge had been introduced earlier this year, and a new infrastructure company called Göng og brú was being established to handle the regional charging system.