Iceland and Norway decided to expand their climate cooperation with the European Union by applying EU climate laws related to sectors outside the EU Emissions Trading System (ETS) and land use, land-use change and forestry (LULUCF). Iceland and Norway participate in the ETS since 2008.
As part of the effort sharing regulation, Iceland and Norway will adopt a binding annual GHG emission target for the period 2021-2030 to cut emissions from sectors outside the EU ETS (agriculture, transport, waste management, and buildings).
Concerning the regulation on LULUCF, the two countries will pledge to compensate GHG emissions from LULUCF by at least an accounted equivalent removal of CO2 from the atmosphere in the period 2021–2030.
In addition, Iceland and Norway will have to publish a national climate plan describing their policies in place and how they plan to implement the two EU regulations.
The two regulations must be adopted by the Icelandic parliament.