Iceland is to ban registrations of fossil fuel cars by 2030 as part of plans to meet the country’s Paris Agreement targets and become carbon neutral by 2040.

The Climate Strategy was launched by Prime Minister, Katrín Jakobsdóttir and consists of 34 government measures, ranging from an increase in reforestation to a ban on new registration of fossil fuel cars by 2030.

The plan aims at transforming the transportation system from using imported fossil fuels to a carbon-free system run on renewable energy. It will be subject to public consultation and an updated strategy will be published in 2019.

“The government has secured substantial increase in funding for climate mitigation measures and now presents a new climate strategy, with clearly defined priorities,” said Jakobsdóttir.

“Ahead is a period of consultation with industry, municipalities and civil society on how to implement the strategy and individual actions. We have a clear determination to succeed in our goals in this most important issue; to reach our Paris Agreement goals by 2030 and the government’s stated aim for a carbon neutral Iceland by 2040.”

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The main emphasis of the new plan is on two measures: 1) to phase out fossil fuels in transport, and 2) to increase carbon sequestration in land use, by afforestation, revegetation and restoration of wetlands.

Climate mitigation measures will get a substantial increase in funding – almost 7bn krónur (US$61m) in the period, 2019-2023. A general carbon tax, already in place, will be gradually increased.

Iceland already enjoys virtually carbon-free electricity and heating, thanks to its use of geothermal and hydro energy. Fossil fuels are used in transport and fisheries and now the aim is set for a push in decarbonizing those sectors.

Among the measures announces in the new plan are: increases in government support for charging stations and other infrastructure for electrical transport and other clean fuels; support for biofuel production; a strengthening of already subsidies for electrical cars and other clean vehicles; and support for public transport and bicycling.

Iceland has seen a considerable increase in the purchase of electrical cars recently, and the plan aims at greatly accelerating this trend in the coming years.