Reykjavík was the first municipality in Iceland to implement a policy on reducing greenhouse gas emissions in 2009 and in 2016 the City Council ruled that Reykjavík should become carbon neutral by 2040.

To achieve this, the city has put in place an ambitious Sustainable Energy Action Plan that includes steadily increasing the share of electric-powered modes of transport, including by creating an electric public transportation corridor. Reykjavik will achieve these goals in a spirit of collaboration and co-creation, working closely with citizens and other regional and national stakeholders.




Urban planning and land use



Developing very energy efficient districts

Efficient city infrastructure

Low-carbon energy production


Citizen participation



  • Replace fossil fuels, that today are only used by the transport sector, with electrification and sustainable fuels;
  • 100% of municipal vehicles free of greenhouse gas emissions by 2025;
  • Emissions from road transportation to be cut by 35% from 2005 to 2030 and carbon-neutral before 2040;
  • 200 MW increase in production of renewable geothermal energy for district heating system;
  • Full integration of EV and energy storage/production mechanism for positive energy building blocks by 2040;
  • Share of car traffic 58%, public transport 12% and walking and cycling 30% by 2030.

Reykjavik goals