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Skuli Helgason at Innovation Forum in Reykjavik, May 2012
1.
2. The Icelandic Economy
• Key sectors include fishing, tourism and heavy industry.
Icelandic economy vulnerable to adverse trends in foreign
markets. A strong need for diversification.
• Polarization between nature conservation and heavy industry
has been a major political cleavage factor for decades.
• The Green Economy can bridge the divide between strong
demands for growth and sustainable development.
3. Why a green economy?
• Green economy is a prerequisite for sustainable growth in the
21st-century and a logical reaction to climate change.
• An environmentally friendly economic policy in line with the
philosophy of sustainable development coordinates economic
policy with Iceland´s promotional strategy.
• The demand for green energy is increasing and Icelanders
have a comparative advantage in terms of extensive
knowledge in the field of renewable energy.
• Icelanders have one of the largest ecological footprints in the
world. Challenge calling for a swift response.
4. What is a green economy?
Economic activity that reduces carbon emissions,
supports a more efficient use of energy and resources
and prevents the degradation of biological diversity and
ecosystem services.
A green economy is characterised by increased value creation
while reducing the demand on nature.
A green economy is a practical route to sustainable development.
5. What are green jobs?
A: Pure green jobs
Jobs in businesses that produce goods or services that benefit
the environment or support the conservation of natural resources.
B: “Greening” jobs
Jobs which include making production
processes more environmentally friendly and/or
less demanding with respect to use of natural resources.
6. A Vision for Iceland
Iceland can be a role model as
a green economy,
emphasizing clean natural environment,
sustainable use of energy,
innovation and
education towards sustainability.
7. Statement of policy
• The Government will set an example and create
conditions for the development of a green economy.
• Economic incentives will be used to promote green
economic activity.
• Green jobs will be created.
• Emphasis will be placed on promoting green
investments from local and foreign sources.
8. Statement of Policy
• The Polluter-Pays-Principle will form the basis for
implementing fees and tariffs to finance economic incentives.
• The Precautionary Principle will be an integral part of
the governments´ fiscal and employment policy.
• Education on sustainable development and environmental
issues will be increased.
• The green economy will be an integral part of the national
promotional strategy.
9. The State as a Model
• Strengthening the green economy shall be a priority in the
government´s economic and employment policy.
• Althingi, all cabinet ministries and public institutions shall
implement environmental management plans to reduce waste
and negative environmental impact.
• Increased emphasis on green public procurement. Eco-
friendly calls for tenders will be increased to 50% in 2015 and
80% in 2020.
• Iceland shall ratify Appendix 6 to the MARPOL Convention for
the Prevention of Pollution from Ships and declare the
Icelandic exclusive economic zone an Emission Control Area.
10. Administration and Analysis
• The green economy will be located in the Prime Minister´s Office
which will coordinate the work of all cabinet ministries. The
PMO’s office will initiate a consultative process with local
governments.
• Genuine Progress Indicator (GPI) shall be calculated and
published along with GDP measurements.
• Provisions on Cost-Benefit analyses (CBA) shall be added to
legislation on environmental impact assessment of plans and
projects.
• A comprehensive revision of the legislation on waste to remove
barriers to the recycling industry in Iceland.
11. Green Jobs and Investments
• A five-year campaign will be launched to encourage foreign
direct investment (FDI) in green businesses.
• A Green Venture Capital Fund shall be established in a
public-private partnership including domestic and foreign
investors.
• A Green Innovation Fund shall be established to fund green
R&D and innovation projects.
• The Government shall develop an action plan to increase
organic production to a level of 15% of national agricultural
production by 2020.
12. Economic Incentives
• Renewable energy for transport will not be taxed before its share
has reached 20% of total use in transport.
• Private businesses will be reimbursed up to 20% of the cost of
implementing certified environmental management systems (for
instance ISO 14001 or EMAS).
• The Ministry of Finance shall develop pollution fees, which will be
used to partially reimburse private businesses that invest in
pollution prevention solutions in respective industries.
• Public institutions will be reimbursed up to 20% of product costs
that fulfil the terms and conditions of Environmental Labels Type 1
13. Green Revolution of the Mind
• Innovation Center Iceland shall be entrusted with the
development of a methodology that encourages the
“greening” of the practices of local businesses.
• An educational campaign shall be launched concerning the
real cost of alternative means of transport and the relationship
between different means of transport and health.
• All legislation pertaining to public institutions shall be revised
in order to integrate the concept of sustainable development
into the statutory purposes of the respective institutions.
14. Political Consensus
• Parliamentary resolution –support from all parties.
• Parliamentary committee reaches a unanimous
conclusion in final report.
• Standing committee proposes that resolution will be
approved 9-0
• Parliament approves resolution 43-0
15. Latest developments
• The Icelandic Government has approved an Investment Plan
for 2013-2015 that includes a proposal for providing 25 million
euros towards implementing the first phase of an Action Plan
on the Strengthening of the Green Economy.
• Priority will be given to proposals that support R&D and
innovation; increase investments; introduce economic
incentives and create green jobs.
• The Prime Minister’s Office will designate a task force to
finalize an Action Plan based on the Parliament resolution.