An act on the emission of greenhouse gases was passed by the Icelandic legislature in 2007 to create conditions for Icelandic authorities to comply with international obligations in limiting emissions of greenhouse gases.
Source: UNCSD Secretariat (2010) Questionnaire for the Member States on Experiences, Success Factors, Risks and Challenges with Regard to Objective and Themes of UN Conference on Sustainable Development (UNCSD)

The Act establishes the national system for the estimation of greenhouse gas emissions by sources and removals by sinks, a national registry, emission permits and the duty of companies to report relevant information to the authorities. The Act specifies that the Environment Agency of Iceland (EA) is the responsible authority for the national accounting as well as the inventory of emissions and removals of greenhouse gases according to Iceland's international obligations. The EA shall, in accordance with the legislation, produce instructions on the preparation of data and other information for the national inventory.