Our Climate Action Plan was approved in 2019 and is in effect until 2030.
The Climate Action Plan is based on mapping Landsvirkjun’s carbon footprint and includes five targets that guide the path to the future. Landsvirkjun will become carbon neutral in 2025 – when we aim to sequester as much carbon as operations emit.
Further information on Landsvirkjun’s emissions and how we are doing in reaching our targets can be found in the Climate Accounts and the Climate Dashboard.
We have prioritised climate measures to achieve as much success as possible and in the most efficient way:
Monitoring emissions only serves a purpose if it leads to improved decision-making.
Therefore, our Climate Action Plan is comprehensive, applies to various operational factors, and includes quantitative targets for each one.
This is essential to ensure constant follow-up on the measures taken and effectiveness monitoring.
Carbon intensity from Landsvirkjun’s electricity generation is very low in international comparison. In accordance with the EU Green Deal, electricity generated with hydropower or geothermal energy can be classified as contribution to climate change mitigation when carbon intensity is below 100 g CO₂-eq/kWh, given that it causes no significant harm to other environmental objectives defined in the EU Taxonomy regulation.
We aim to do even better and have set targets for consistently keeping the carbon intensity under 4 g CO2-eq/kWh – well below the EU benchmark.
Emissions from Landsvirkjun’s operations are mainly from geothermal power stations.
In 2025, we will return most of the carbon dioxide emitted from the geothermal fluid when electricity is generated back into the geothermal system, resulting in a reduction in emissions from our geothermal power stations by 60%, with 2008 as the base year.
Concurrently, we will have more than doubled geothermal energy generation.
The most significant part of emissions globally stems from the use of fossil fuels. Therefore, we will stop procuring fossil fuels in 2030.
Our Energy Transition Plan defines targets for reduction in the use of petrol and diesel until 2025, with sub-objectives that serve as milestones. The Plan reflects our emphasis on informed decision-making regarding vehicle and equipment procurement.
The result is that, e.g., when one of the Company’s vehicles or equipment burning fossil fuels needs to be replaced, a replacement that uses green fuel is the first choice. This is Landsvirkjun's comprehensive approach to renewing its equipment and vehicle fleet.
We will reduce direct emissions from the Company’s operations by 50% in 2025, with 2008 as the base year, e.g., by reducing emissions from geothermal power stations.
However, this does not suffice if indirect emissions, i.e., from suppliers, consultants, or other service providers, remain the same. Therefore, we make precise requirements to parties that we have business with to reduce their carbon footprint and support them. Landsvirkjun applies internal carbon prices to aid in decision-making, as well as seeking every possible means to reduce the carbon footprint of construction projects.
Internal Carbon Price
Our primary decision-making tool is the internal carbon price. This equates to emissions – or the future cost of emissions – factored into all more significant financial decisions, from procurement of operational goods to options for new power stations.
Constructions
The carbon footprint from construction can be reduced with improved design and specific measures for each project. Thus, in new construction and maintenance projects, the carbon footprint is increasingly becoming more significant.
We are focused on minimising our impacts on the environment, maintaining biodiversity, and restoring areas in case of disturbance.
For decades, we have emphasised improving the land quality and environment of operations areas and the vicinity and systematically sequestering carbon dioxide in the ground and vegetation. This has resulted in annual carbon sequestration of over 34,000 CO₂-eq. By properly maintaining the Company’s operations areas, carbon sequestration will continue to increase.
Revegetation
Revegetation is a mitigating measure to prevent soil erosion and supports the development of ecosystems. The focus of this effort is mainly to improve the land quality in the area in question, emphasising securing sustainable ecosystems, supporting natural processes, and reclaiming biodiversity in Icelandic nature.
Reclaiming Wetlands
As part of our climate mitigating measures, wetlands were first reclaimed in 2019. The goal is for conditions to be as close as before the land drainage. Therefore, we focus equally on monitoring changes in greenhouse gas emissions as detecting new vegetation in the area in question.
Afforestation
The objective of our afforestation projects has been creating windbreaks, reducing the occurrences of sandstorms, revegetating barren areas, and reclaiming natural forests. Moreover, the emphasis is on forestry carbon sequestration.
Climate affairs are alarming, and the time to act is now. Although emissions from Landsvirkjun’s operations are minimal, the Company will support the fight against climate change, one of the most urgent subjects of humanity.
Landsvirkjun’s Climate Action Plan was prepared by its employees and is based on precise mapping of the Company’s carbon footprint since 2007. Our specialists have a comprehensive professional knowledge of environmental matters, with decades-long experience in the field.
Furthermore, it is our view that we have the responsibility to share this professional knowledge so it can also be brought to good use elsewhere.
