Iceland must balance growth in power and tourism industries with nature conservation, OECD says

Iceland has one of the world’s most pristine natural environments and its glaciers, volcanoes and hot underground springs bring major economic benefits via renewable energy and tourism. Continued growth in power generation for aluminium smelting and in tourist numbers must be managed carefully to preserve these natural assets, an OECD report says.

The OECD’s third Environmental Performance Review of Iceland notes that the country’s electricity output has more than doubled since 2000 to nearly five times the amount needed by the population of 320,000, mainly to fuel three foreign-owned aluminium smelters. The number of tourists drawn by Iceland’s rugged landscapes has also more than doubled in the same period to around 700,000 visitors a year. Both trends put pressure on the environment.

“The combination of renewable energy and spectacular natural tourist attractions create opportunities for Iceland to play a pioneering role in the world’s transition to green growth,” said OECD Environment Director Simon Upton, presenting the report in Reykjavik. “Yet these assets must be well-managed and the conflicts fully addressed between these competing uses of land.”

See full Press Release: Environment - OECD