The Energy Transition in Iceland

Iceland is leveraging its abundant geothermal and hydropower resources to lead the transition to renewable energy in Europe. With a strong commitment to environmental sustainability and ESG principles, the country is integrating renewable energy into its power mix, primarily relying on geothermal and hydropower, which provide stable and low-carbon electricity. Iceland is also exploring the potential of critical minerals such as aluminium, silicon, and rare earth elements, which are essential for clean technologies like electric vehicles and renewable energy infrastructure. While not a large-scale producer of critical minerals, the country’s focus on sustainable development and green energy strategies is helping it contribute to Europe’s energy transition. Additionally, Iceland’s mineral resources, including basalt, perlite, and pumice, support industries such as construction. Iceland’s international ties through the EU, NATO, and the UN enhance its role in regional energy security and sustainability. With its renewable energy focus and growing interest in critical minerals, Iceland is positioning itself as a key player in Europe’s clean energy future.