Progress in sustainable construction in Iceland
The Icelandic Sustainable Constructions Roadmap to 2030 was developed under the project Building a Greener Future during 2020–2022 with the goal of reducing emissions from the construction industry in Iceland. As part of the Roadmap, an assessment of emissions from Icelandic buildings was published, and an ambitious target was set to reduce those emissions by 43% by the end of 2030.
Following the publication of the Roadmap, a group of experts was formed with the task of proposing a harmonised methodology (Life Cycle Assessment – LCA) to evaluate the emissions and environmental impacts of Icelandic buildings. In this work, particular attention was paid to the experience of the Nordic countries, which already have extensive experience with LCAs in the construction sector and have introduced regulations and benchmarks. This work led to the formal adoption of LCAs into the building regulations, announced by The Housing and Construction Authority of Iceland (HMS) on March 26, 2024. From then, and until the end of August 2025, an adaptation period took place which allowed professionals in the construction industry to familiarise themselves with the subject and prepare.
The requirement to submit LCAs for new buildings took effect on 1st of September 2025. To fulfil the requirement, an LCA needs to be submitted along with the building permit application for new construction projects in categories 2 and 3. Once experience has been gained from this implementation and more data has been collected, the aim is to set emission benchmarks and limit values in 2027.
Without a harmonized methodology, it is difficult to evaluate the environmental impacts of buildings. Therefore, the introduction of LCA into the building regulations is a key element in achieving the 43% emission reduction target by 2030, and in meeting future goals.
Methodology and assumptions for LCA of buildings in Iceland
In broad terms, the LCA required by the building regulations must assess the carbon emissions of all major life cycle phases of a building: Production of materials, transport of materials, construction activities, energy use during operation, replacement of building components over the building’s lifetime, demolition, and waste treatment. The analysis must also cover all major building components, systems, and technical equipment. To facilitate comparability, a standard building lifetime assumption of 50 years must be used in all analyses.
To encourage reuse of building materials, a special rule applies that allows such materials to be registered with zero carbon emissions across all phases. This does not apply to recycled materials, only reused ones – for example, a steel beam taken from a demolition and used again unchanged in a new building in the same region.
Background data used in LCAs must be traceable, so it is clear from which database the data comes from. When possible, it is recommended to use Iceland-specific data and environmental product declarations (EPDs) for specific construction products which are planned to be used. When using general data for Icelandic buildings, other traceable databases should be used (e.g. from Denmark, Sweden, or Finland, which contain data on common construction materials).