The Climate Action Plan aims to boost efforts in cutting net emissions in order to reach the government‘s aim to make Iceland carbon neutral before 2040. The plan consists of 34 government measures, ranging from an increase in reforestation to a ban on new registration of fossil fuel cars by 2030.

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

Climate mitigation measures will get an increase in funding of almost 7 billion Icelandic krónur in the period 2019-2023. A general carbon tax, already in place, will be gradually increased (it was increased by 50% in the beginning of 2018, and will be increased by 10% in 2019, and by 10% again in 2020).

The plan was thoroughly updated in 2020.