49On the Path to Climate Neutrality October 2021On the Path to Climate Neutrality October 2021 The Paris Agreement encourages Parties to formulate and communicate long-term low greenhouse gas emission development strategies. This document enfolds Icelandâs first communication on its long-term strategy (LTS), to be updated when further analysis and policy documents are published on the matter. 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.