The City of Reykjavik is the capital of Iceland. Reykjavik is one of the cloudiest and coldest capitals of any nation in the world. It meets all of its electricity and heating needs from renewable sources (hydro and geothermal) and is a centre of excellence for renewable energy research and development. Reykjavík was the first municipality in Iceland to make a policy on reduction on greenhouse gas emissions in 2009 and in 2016 the City Council decided Reykjavík will be carbon neutral by 2040 and has created an action plan to that end (Reykjavik`s Sustainable Energy Action plan).

The City has created an ambitious action plan that includes steadily increasing ratio of electricity-powered modes of transport including creating an electric public transportation corridor.