Iceland is committed to reducing its overall greenhouse gas emissions and reaching climate neutrality no later than 2040 and become fossil fuel free in 2050, which should set Iceland on a path to net negative emissions. The goal of net zero emissions no later than 2040 was enacted into the Climate Act in June 2021, based on the Government Agreement from 2017. Foundation has been laid for the long-term strategy and various milestones have been reached on the path towards the long-term goal of climate neutrality. A key document is Icelandâs Climate Action Plan for emissions reduction of 40% by 2030, compared to 2005 levels, which was published in 2020.