Land and Forest Iceland
New Regulation Strengthens Support for Land Reclamation and Forestry
30th January 2026
Jóhann Páll Jóhannsson, Minister for the Environment, Energy and Climate, has confirmed a new regulation on incentive and support projects in land reclamation and forestry. The aim of the regulation is to encourage and support projects and initiatives carried out by those working in land reclamation, forestry, and the protection and restoration of ecosystems, thereby contributing to positive impacts on the climate and biodiversity.
The restored pond Líkatjörn at Mosfell in Biskupstungur. Photo credits: Trausti Jóhannsson
(News report from the Government Website)
With the adoption of the regulation, a harmonised framework has been established for support schemes and the allocation of grants in the fields of land reclamation and forestry. This framework is intended to simplify administration, clarify rules, and increase transparency.
The regulation is based on the Act on Land Reclamation and the Act on Forests and Forestry, and represents an important step towards protecting, restoring, and enhancing the nation’s natural resources embodied in vegetation and soils.
The regulation introduces new types of projects that are now eligible for support, including:
Protection of carbon-rich ecosystems and ecosystems of high importance for biodiversity.
Preparation of integrated land-use plans for farms, catchment areas and/or landscape units.
Education, monitoring, and community-based projects.
In addition, the regulation lists a number of eligible project types that have received state support for many years. These include, among others, measures to prevent land erosion, wetland restoration, land reclamation, forestry, and the establishment of shelterbelts.
There is much to be gained from ecosystem protection, wetland restoration, land reclamation and forestry. One of this government’s priority projects is the restoration of wetlands and ecosystems, as it allows us to address multiple challenges at once. This is a key measure in the fight against climate change, for the protection of biodiversity, to increase resilience to natural hazards, and to safeguard natural values for the future. With this regulation, the government strengthens its support for biodiversity and land reclamation projects, supports a wider range of initiatives, and creates a clearer and simpler framework for cooperation between authorities and individuals, municipalities, civil society organisations, companies, and others working on these important tasks,
says Jóhann Páll Jóhannsson, Minister for the Environment, Energy and Climate.
Land and Forest Iceland will issue an annual call for applications for support, manage contracting, monitor project implementation, and assess project outcomes in accordance with the Act on Land Reclamation and the Act on Forests and Forestry.
The adoption of the regulation is in line with the Land and Life action plan, the government’s policy on land reclamation and forestry, the climate action plan, the climate adaptation strategy, and the government’s biodiversity policy.
Regulation on Incentive and Support Projects in Land Reclamation and Forestry