Iceland strengthens energy sovereignty and Arctic technological frontiers

The Icelandic Government has decided to submit a motion to the Althingi to hold a referendum on 29 August 2026 on whether to resume EU accession negotiations.

• Main announcement: The Government will hold a referendum on 29 August 2026 on the resumption of EU accession negotiations (motion submitted to the Althingi in March). If the ‘yes’ vote prevails, this would be the first step in a multi-stage process: formal negotiations would follow and a second popular consultation would be held only after a negotiation concludes and a treaty is reached.
• Background and related actions:Memorandum of Understanding on geothermal cooperation signed in Reykjavik on 17 October 2024 frames public-private collaboration on exploration, power generation, district heating and plant management; Iceland’s energy mix is 70% hydro, 30% geothermal, it hosts the DAC plant “Orca” (Climeworks-Carbfix) capturing ~4,000 tonnes CO2/year, and fiscal incentives include 20% corporate tax and up to 35% R&D tax credit. Forecasts and financial figures: FDI net recovery to $1.4 billion in 2023, forecasts of $578 million (2025) and $609 million (2026).