Geothermal energy is used to heat approximately 90% of Icelandic homes and buildings.
Cultural Insights

Embracing a Greener Journey: Sustainability in Iceland

06.03.2025

Iceland, a land of fire and ice, is known for its dramatic landscapes, from expansive glaciers to active volcanoes. But beyond its stunning natural beauty lies a deep commitment to sustainability. This dedication is not just a trend; it's woven into the very fabric of Icelandic life, influencing everything from energy production to social well-being. For travelers, understanding this commitment can transform a simple visit into a more meaningful and responsible journey.

This guide will explore the different facets of sustainability in Iceland. We will cover the nation's pioneering use of renewable energy, its efforts in environmental protection, and the principles of economic and social stability that guide its future. We will also provide practical advice on how you can participate in sustainable travel, ensuring your adventure leaves a positive impact.

Iceland's Leadership in Sustainable Energy

Iceland is a world leader in renewable energy.

Iceland is a world leader in renewable energy. Nearly 100% of the country's electricity is generated from renewable sources, a remarkable achievement that sets a global standard. This success is rooted in the island's unique geology, which provides abundant geothermal and hydropower resources.

The Power of Geothermal Energy

Sitting atop the Mid-Atlantic Ridge, Iceland is a hotspot of geothermal activity. This natural heat from the Earth's core is harnessed to produce clean energy. Geothermal power plants tap into underground reservoirs of hot water and steam, which drive turbines to generate electricity. This process provides about 30% of the nation's electricity.

Beyond electricity, geothermal energy is used to heat approximately 90% of Icelandic homes and buildings. This direct use of geothermal heat significantly reduces the country's reliance on fossil fuels. You can see this power firsthand at geothermal areas like the Geysir geothermal field or by visiting one of the many geothermally heated swimming pools found in towns and cities across the country.

Harnessing Hydropower

The remainder of Iceland's electricity, about 70%, comes from hydropower. The country's numerous glaciers and rivers, fed by ample rainfall and snowmelt, provide the perfect conditions for generating hydroelectricity. Power plants are strategically built along major rivers, using the force of flowing water to create a reliable and clean energy source. This combination of geothermal and hydropower makes Iceland's energy grid one of the most sustainable in the world.

Environmental Sustainability: Protecting a Fragile Land

Protecting its unique environment is a top priority for the people of Iceland.

Protecting its unique environment is a top priority for the people of Iceland. The landscape, while rugged, is often fragile and susceptible to damage from human activity. Conservation efforts are crucial for preserving the natural wonders that draw visitors from around the globe.

National Parks and Protected Areas

Iceland has three magnificent national parks: Þingvellir, Vatnajökull, and Snæfellsjökull. These parks protect vast areas of historical and geological significance.

  • Þingvellir National Park is a UNESCO World Heritage site, recognized for both its geological importance as the meeting point of the North American and Eurasian tectonic plates and its historical role as the site of Iceland's first parliament.
  • Vatnajökull National Park is one of Europe's largest national parks, encompassing the massive Vatnajökull glacier and a diverse range of landscapes, including volcanoes, ice caves, and glacial rivers.
  • Snæfellsjökull National Park surrounds the iconic Snæfellsjökull volcano, made famous by Jules Verne's novel "Journey to the Center of the Earth."

These protected areas have strict regulations to minimize environmental impact. It is essential for visitors to stay on marked trails, respect wildlife, and follow all park rules. The use of drones in Iceland, for example, is heavily restricted within national parks to protect nesting birds and ensure a peaceful experience for all.

The Pledge for Responsible Tourism

The Icelandic government and tourism industry have collaborated on initiatives to promote responsible travel. The Icelandic Pledge is a voluntary code of conduct for tourists, encouraging them to travel safely, respect nature, and leave places as they found them. By taking this pledge, you commit to being a mindful traveler. This includes simple acts like not disturbing delicate moss, avoiding off-road driving, and properly disposing of waste.

Economic and Social Sustainability

Holdur - Europcar supports Iceland's sustainability goals

True sustainability extends beyond environmental concerns. It also involves creating a stable economy and a fair society that can thrive for generations to come.

A Resilient and Diversified Economy

For centuries, fishing was the backbone of Iceland's economy. While still important, the economy has diversified significantly. Tourism has become a major pillar, alongside renewable energy, technology, and creative industries. This diversification helps build economic resilience.

Responsible tourism plays a key role in economic sustainability. When you choose to support local businesses—from small guesthouses and restaurants to local tour operators and craftspeople—you contribute directly to the communities you visit. This helps ensure that the economic benefits of tourism are distributed throughout the country, supporting local jobs and preserving the unique Iceland culture and traditions.

A Society Built on Equality and Well-being

Social sustainability is about fostering a healthy, equitable, and educated society. Iceland consistently ranks among the top countries in the world for quality of life, gender equality, and overall happiness. The strong social safety net, universal healthcare, and high-quality education system are cornerstones of this success.

What language do people in Iceland speak? The official language of Iceland is Icelandic, a North Germanic language that has changed little since the time of the Vikings. However, you will find that English is widely spoken, especially among younger generations and in the tourism industry. The people of Iceland are proud of their language and heritage, and learning a few basic Icelandic phrases can be a wonderful way to connect with the local culture.

Sustainable Travel in Iceland: Your Role in the Journey

Sustainable Travel in Iceland

As a visitor, you have a vital role to play in supporting Iceland's sustainability goals. A little planning and mindful behavior can make a big difference. Renting a car in Iceland is one of the best ways to explore the country at your own pace, and making sustainable choices with your car hire can enhance your trip.

Choosing the Right Vehicle

Selecting the appropriate vehicle for your itinerary is the first step. If you plan to stick to the main Ring Road and paved roads, a standard 2WD vehicle is sufficient for most of the year. This is often a more fuel-efficient and affordable car rental Iceland option.

However, if your plans include visiting the Highlands or exploring more remote areas via the mountain roads (F-roads), a 4x4 car hire is essential. F-roads in Iceland are unpaved gravel tracks that are only open during the summer months and legally require a four-wheel-drive vehicle. Driving a 2WD car on these roads is not only illegal and unsafe but can also cause environmental damage. Choosing the right hire car 4wd ensures your safety and protects the delicate terrain.

Responsible Driving and Travel Practices

Once you have your Iceland rental car, responsible driving is key.

  • Stay on Marked Roads: Never drive off-road. The Icelandic soil and vegetation are extremely fragile, and tire tracks can leave scars on the landscape that take decades or even centuries to heal.
  • Respect Speed Limits: The speed limit in Iceland is generally 90 km/h on paved roads, 80 km/h on gravel roads, and lower in urban areas. Adhering to these limits is crucial for safety, especially given the often-unpredictable Iceland weather.
  • Be Mindful of Fuel: Check gasoline prices in Iceland and plan your refueling stops, as gas stations can be far apart in rural areas. Driving efficiently by maintaining a steady speed and avoiding rapid acceleration can help conserve fuel.
  • Plan Around Daylight: Iceland daylight hours by month vary dramatically. In summer, you can enjoy nearly 24 hours of daylight, while winter days are very short. Plan your driving during daylight hours for better visibility and safety, particularly during winter when road conditions can be challenging.

Holdur Car Rental offers Iceland’s largest fleet of electric vehicles like Tesla Y Dualmotor AWD

Frequently Asked Questions: Sustainable Travel and Car Rental in Iceland

How does Iceland generate its energy sustainably?

Iceland produces almost all of its electricity from renewable sources, primarily geothermal and hydropower. This means the country benefits from clean, reliable energy with minimal carbon emissions, making it a global leader in sustainability.

Are electric vehicles (EVs) available for car rental in Iceland?

Yes, Holdur Car Rental offers Iceland’s largest fleet of electric vehicles. Choosing an EV for your car hire reduces your carbon footprint and supports the country’s environmental goals, all while enjoying reliable mobility across much of Iceland.

What should I know about driving on Iceland’s F-roads?

F-roads in Iceland are mountain routes with rough terrain, which require a four-wheel-drive (4WD) rental car. These roads are only open in summer and should be driven with caution to avoid damaging sensitive nature and ensure your own safety.

How do I travel responsibly in Iceland?

Practice responsible travel by respecting speed limits, staying on marked roads, avoiding off-road driving, safely disposing of waste, and supporting local businesses. If you’re renting a car in Iceland, choose a fuel-efficient or electric option and plan your trips to minimize environmental impact.

What makes Holdur Car Rental a sustainable choice?

Holdur leads sustainability in the Icelandic car rental industry by investing in the largest EV fleet and being the first company in Iceland to achieve ISO14001 environmental certification. This reflects a deep commitment to both environmental stewardship and customer safety.

How cold is Iceland, and what weather should I expect year-round?

Iceland weather all year is variable. Winters can be cold with temperatures often below freezing, while summer offers mild temperatures, generally between 10–15°C (50–59°F). Always check the Iceland weather month by month and prepare for changing conditions when planning your road trip.

What is the speed limit in Iceland?

Speed limits are typically 90 km/h on paved rural roads, 80 km/h on gravel roads, and lower within towns and cities. Adhering to speed limits helps protect wildlife, pedestrians, and other travelers, as well as the local environment.

Is it easy for English speakers to travel in Iceland?

Absolutely. While the official language of Iceland is Icelandic, English is widely spoken, especially in tourism-related services. This makes it easy for international visitors to communicate and enjoy their Iceland rental car experience.

 

 

Iceland Car Rental Locations Map

 

 

Supporting a Sustainable Future

Exploring Iceland is a privilege. By embracing the principles of sustainability, you can help ensure that its incredible landscapes and unique culture are preserved for future generations to enjoy. From choosing a fuel-efficient rental car to supporting local businesses and respecting nature, your actions contribute to a greener, more responsible way of traveling.

At Holdur Car Rental - Europcar, we are dedicated to helping you explore Iceland responsibly—and we’re proud to have pioneered sustainability within the Icelandic car rental market. Holdur has made significant investments in Iceland’s largest electric vehicle (EV) fleet, providing our customers with cleaner, more environmentally friendly mobility options.

We are also the first car rental company in Iceland to earn certification according to the ISO14001 environmental standard, reflecting our ongoing commitment to minimizing environmental impact and upholding the highest standards of environmental management. With a diverse fleet suited for every itinerary and expert guidance to support safe, sustainable travel, we invite you to join us in protecting this extraordinary country for future generations.

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