Regulation No. 540/2020 on aquaculture.

This Regulation applies to the farming of freshwater fish and marine commercial stocks within Icelandic jurisdiction, including the operation of fish-farming stations and the cultivation of aquatic organisms. It defines key concepts such as aquaculture, land-based farming, sea-cage farming, farming areas, carrying-capacity assessment, etc. A major part of the regulation concerns planning and environmental risk control: the Minister decides which fjords or sea areas must undergo carrying-capacity assessment; the Marine and Freshwater Research Institute carries out or supervises such assessments, monitors organic loading, publishes assessments, and divides fjords or marine areas into defined farming areas. Operating licences must be adjusted where authorised biomass no longer conforms to carrying capacity. For fertile salmon, the Institute proposes a binding genetic introgression risk assessment, estimating the permitted biomass of fertile farmed salmon in sea areas by reference to likely escapes, return rates, etc.
The regulation also establishes a licensing system. To operate a fish-farming station, an operator needs both an operating licence from the Icelandic Food and Veterinary Authority, Matvælastofnun, and an environmental operating permit from the Environment Agency. Applications must include the information specified in the regulation. Sea-cage applications require further special information. Matvælastofnun must assess animal health, disease prevention, welfare, compliance with carrying capacity and genetic-risk limits, planning compatibility, and distance rules. Draft licences are publicly advertised, comments may be submitted, and licences are normally issued for 16 years if legal conditions are met. The licence must specify permitted biomass, type of farming, species, stocks, coordinates, whether salmon are fertile or sterile, any mitigation measures, fallowing and coordinated smolt-release requirements, and cooperation duties on disease control and parasite monitoring. Before a licence takes effect, Matvælastofnun must inspect the station and, for sea-cage farming, require a station certificate from an accredited inspection body.
The Regulation further contains highly operational and technical rules. Sea-cage farms must comply with established standards: operators need site surveys, mooring analyses, product certification, user manuals, etc. Operational rules restrict fish and egg movements between farms and water systems, require notification of transport, prohibit stocking before licences and certificates are effective, and require operators to keep only species listed in the licence. For fertile salmon in sea cages, operators must minimise sexual maturation and apply light control from 15 November to 30 April. The regulation also imposes internal-control and quality-management duties, including daily monitoring where conditions allow, escape-response plans, maintenance and emergency procedures, monitoring criteria, staff training, records, diaries and monthly reporting to Matvælastofnun. Matvælastofnun is given broad inspection powers, including access to premises, records, samples and photographs, and may delegate controls to accredited bodies. The annexes prescribe detailed diary and monthly-report content, including farm identity, licence number, units in use, fish numbers and average weight, mortality, feed, transfers, treatments, escapes, and other operational data. The regulation is issued under the Aquaculture Act No. 71/2008, entered into force immediately, and replaced earlier aquaculture regulations subject to transitional provisions