Iceland aims to be carbon-neutral by 2040. Reykjavik’s goal is to reduce greenhouse emissions by 73 per cent before 2030. Since the city’s electricity supply and heating comes from renewable energy sources, the transport sector causes the largest emissions, being responsible for 70 per cent of all direct emissions in 2017. The goal is for all car and public transport to be free from direct emissions of greenhouse gases by 2030.
Green bonds have been created for Reykjavik to achieve the objective. The Green Bond Framework makes it possible to support the transition to more sustainable methods by investing in projects with environmental benefits. The projects included must have measurable results. Categories include renewable energy, measures to prevent and limit pollution, and the preservation of biodiversity on land and in water. There are four types of bond. The Green Bond Principles (GBP) are voluntary guidelines recommending transparency and openness.