Act on marine and coastal spatial planning (No. 88 of 2018).

Iceland’s Act on Marine and Coastal Spatial Planning establishes the framework for planning the use and protection of marine and coastal areas from the outer limit of privately associated coastal waters to the outer boundary of Iceland’s exclusive economic zone. Its objectives are to coordinate economic, social, cultural, health and safety interests with an ecosystem-based approach, nature and cultural-heritage protection, sustainable development and consideration of climate-change impacts. The Act requires a national policy on marine and coastal spatial planning and provides for detailed coastal spatial plans for designated areas. These plans may address offshore energy, construction, aquaculture, extraction of materials, dumping, protected areas, water protection, transport, natural hazards, recreation and tourism.
The Minister has overall responsibility for the planning system, assisted by the Housing, Construction and Planning Agency, while regional councils prepare individual coastal spatial plans with input from municipalities, specialist agencies, environmental organisations and other stakeholders. Coastal spatial plans must assess environmental effects, coordinate with municipal and other statutory plans, and undergo public consultation; draft plans must normally be open for comments for at least eight weeks before ministerial approval and publication. Once in force, permits for projects and activities must conform to the applicable coastal spatial plan, and holders of rights who suffer a special restriction beyond ordinary property limitations may be entitled to compensation for financial loss.