Icelandic businesses divided over 2040 carbon-neutrality target
Tuesday 27th October 2026 on 17:15 in
Iceland
Icelandic companies are almost evenly split over the country’s goal of carbon neutrality by 2040, according to a survey commissioned by the Confederation of Icelandic Enterprise and conducted by Gallup, as reported by mbl.is.
Thirty-eight per cent of companies said they viewed the target positively, down from 49 per cent in 2024. The share with a negative view rose from 30 to 37 per cent.
Bjarni Benediktsson, the confederation’s managing director, presented the findings at its 11th annual Environment Day for Business at Hotel Reykjavík Grand. The event’s theme was Iceland’s distinctiveness.
More than half of the companies surveyed said they were willing to make fairly or very substantial changes to reduce their environmental and climate impact. Asked what measures would help Iceland reach carbon neutrality, most named incentives for renewable energy use. Support for green technology and the renewal of ships, machinery and equipment were also frequently mentioned.
About 60 per cent said government climate and environmental goals and measures were clear and predictable to only a small extent for long-term investment. Among companies that had postponed or cancelled emissions-reduction investments or projects in the past two years, nearly half cited high interest rates and financing costs. Other common reasons included uncertainty about government policy and regulation, inflation and wider economic uncertainty.
About 78 per cent said international and European environmental regulations took little or very little account of Iceland’s distinct circumstances, particularly its geographical position and distance from markets. Nearly 44 per cent said international and European climate and environmental rules weakened their competitiveness.
“The primary aim of climate regulation is to reduce emissions, not to collect fees,” Bjarni said. He said companies needed realistic ways to meet requirements and that rules should encourage investment in new technology without unnecessarily weakening competitiveness.