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Landsvirkjun and the Icelandic State Cleared of Charges

May 26, 2003

The Court rejected the claim that Siv Friðleifsdóttir, Minister for the Environment, had been ineligible to issue a Ruling on the Environmental Impact Assessment of Kárahnjúkar Power Plant. Nor did it agree with the plaintiffs that, in its assessment proposal and EIA report, Landsvirkjun had neglected to give an account of other development options and compare them with the zero option.

The Court concluded that the Minister for the Environment had not applied unlawful or unobjective arguments in interpreting whether the profitability and macroeconomic impact of development were included under the concept of society in sub-paragraph j of Article 3, Act No. 106/2000, and in defining how much likelihood there had to be of substantial and irreversible environmental impact in order to oppose a project.

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