A review of Iceland’s carbon markets

From the Surefni archive. This article records the announcement and context at the time of publication.

This November 2024 article reported on a Ministry of Environment, Energy and Climate working group’s review of carbon markets in Iceland. The report examined the voluntary market, international cooperation under the Paris Agreement and opportunities to meet climate commitments.

The working group proposed a legal definition of carbon credits and a framework for registry activity. Its recommendations addressed the quality, independent assessment, registry recording and traceability of credits purchased by public bodies, together with public reporting of purchases, use and emissions.

It also proposed examining the tax treatment of credit production and purchases, including possible incentives and the deductibility of relevant operating costs. International recommendations included participation in an Article 6 pilot and a policy on purchases from other countries if domestic action proved insufficient.

The article reported a proposed restriction on exporting internationally transferred mitigation outcomes where doing so would adversely affect Iceland’s emissions accounting before its reduction commitments were met. These were recommendations described in 2024, not statements of current law. The source noted that its coverage originally appeared on mbl.is.