Iceland's 2025 mandatory life-cycle assessments for new building permits

From September 1, 2025, Iceland will implement a landmark regulation requiring life-cycle assessments (LCAs) for a substantial number of new building permits. This is part of the nation's broader strategy to reduce the environmental impact of its construction industry and improve sustainability. With a specific focus on the entire lifecycle of building materials, this regulation aligns with global efforts to mitigate climate change impacts through better resource and process management.

Understanding Iceland's new LCA regulations

Starting September 1st, 2025, Iceland will enforce mandatory LCAs for a substantial number of new building permits. This initiative is part of the government's broader strategy to combat climate change, with a focus on assessing the environmental footprint of buildings throughout their entire lifecycle.

Key points of the regulation: 

• Mandatory LCA: From September 1, 2025, LCAs will be mandatory for a substantial number of new building permits. The requirements do not include new constructions such as storage facilities, agricultural buildings, summerhouses and extensions to existing structures.

• Transitional period: A formal transitional period has been introduced to facilitate a smooth implementation and provide opportunities for stakeholders to gain experience in preparing and submitting LCAs.    

• Focus on climate impact: The regulation aims to address the climate change impacts of buildings by assessing their environmental footprint throughout their entire lifecycle.    

• Learning from international best practices: Iceland is drawing on the experiences of other countries that have successfully implemented LCA regulations in the construction sector.    

Implications for architecture and construction

Architects and builders will need to integrate comprehensive environmental assessments into their project planning. This includes using data from LCAs to accurately report the environmental impact of materials and processes used. Projects with verified LCAs will likely become more prevalent, as those without may pose compliance risks or incur higher costs due to the need for additional assessment processes. The requirement for LCA reports will likely influence the entire chain of construction, from design to material procurement, promoting materials with lower environmental impacts.

Strategies for LCA compliance

To effectively adapt, or even stay ahead, to these regulations, Icelandic construction professionals can employ several strategies:

1. Technology: Integrating LCA software is essential for architects and builders to analyze and optimize the environmental impact of building materials throughout their lifecycle, streamline permitting, and adopt sustainable materials.
2. Early integration of LCAs: Involving LCA experts in the early stages of design can help ensure that projects meet sustainability targets from the outset.
3. Building information modelling (BIM): BIM can help predict and optimize buildings' environmental footprints even before construction begins.
4. Material selection: Opting for construction materials with lower environmental impacts and those with certified environmental product declarations (EPDs) will be crucial.
5. Sustainable design innovations: Emphasizing designs that consider end-of-life and material reusability can significantly reduce buildings' life-cycle environmental footprint.

How can you comply with Iceland's new building LCA regulations?

One Click LCA has collaborated with The Housing and Construction Authority of Iceland (Húsnæðis — og mannvirkjastofnun, HMS) to assist the Icelandic construction industry during its transition to mandatory life-cycle assessments by providing a digitally compliant solution that aligns with the new LCA regulations. The Icelandic LCA tool is tailored to Icelandic methodology and facilitates whole-life carbon assessments by integrating both local and international databases for comprehensive LCA calculations.

Looking forward

Iceland's new requirement for mandatory LCAs on new construction projects will make sustainability a fundamental part of the construction industry. This regulation not only positions Iceland as an international leader in sustainable construction but also encourages ongoing adaptation and learning within the industry. As Icelandic construction stakeholders navigate these changes, embracing these new mandates will be crucial for future success and leadership in global sustainability efforts.