Iceland completes four of 35 business policy measures as delays persist

Iceland has completed four of the 35 measures in its first business policy action plan, while 23 are in progress and eight are being prepared, mbl.is reports. The Business Policy Council welcomed progress but raised concerns about delays to reforms affecting aquaculture regulations and the operating environment for data centres.

The figures come from the first progress report on implementing the policy, issued by the Prime Minister’s Office and presented to the council and a ministerial committee on economic affairs. The report says implementation is generally progressing well, although some measures have been delayed. All 35 measures have begun.

One completed measure is a set of legal changes that took effect on 1 July, giving pension funds more scope to invest, including in innovation and business development. A law on screening foreign investments was passed in June and will take effect on 1 January 2027, establishing a clearer legal framework that takes national security and critical infrastructure into account.

Two carbon-capture projects involving emissions from local industry received grants totalling 360 million Icelandic krónur from the Climate and Energy Fund. The funding is for developing technologies to reduce industrial emissions. The fourth completed measure concerns strengthening marine research for the fisheries sector: legal changes approved in April reinforced the legal framework for the Marine and Freshwater Research Institute and clarified its role and long-term planning.

The council also welcomed progress on simplifying administration in environmental and energy matters, expanding pension funds’ investment options and improving the processing of work and residence permits for foreign specialists. It urged the government to safeguard the reimbursement system for research and development costs and said it should consider extending the tax relief period for foreign specialists from three years to seven.

Council chair Robert-Jan Smits said a comprehensive overview of implementation was welcome, but delays needed to be addressed and clear measures of success set for individual actions. He also stressed the importance of regular, transparent follow-up.

Iceland’s business policy through 2035 was approved in March and presented in April alongside the first action plan, which covers 2026 and 2027. Its main aim is strong export growth based on high-productivity industries. Ten ministries are responsible for the measures, which include strengthening infrastructure, simplifying regulations, supporting research and innovation, and developing skills. Progress reports are planned quarterly and will track the measures and nine indicators through 2035.