Icelandʹs energy and environmental strategy

In relation to its population, Icelanders are endowed with vast hydro and geothermal energy resources, which to a large extent (> 99%) await exploitation. For example, Icelandʹs geothermal reserves alone are equivalent approximately, in energy terms, to one-third of the worldʹs currently known crude-oil reserves. Such readily available energy resources provide diverse possibilities for new industrial developments and, if properly exploited, are likely to be major contributory factors in enhancing the average standard of living for Icelanders. To this end, a long-term strategy has been adopted by the Icelandic Government with regard to research and development. The pertinent Government policies are in several respects unique to Iceland because of its geographic location.