Development Co‑operation Profiles: Iceland
Table of contents
Committed to fighting poverty, Iceland invests in marginalised and rural communities in low-income and fragile contexts through district-level approaches and multilateral and civil society partners. Iceland strongly emphasises respect for human rights, gender equality and the environment. It has committed almost half of its bilateral allocable aid to projects and programmes promoting the inclusion and empowerment of persons with disabilities. Iceland’s total official development assistance (ODA) decreased in 2024 to USD 111.7 million (preliminary data), representing 0.33% of gross national income (GNI).
This profile presents verified data on development assistance allocation. See the Development Co-operation Profiles.
Iceland’s development co-operation is guided by a commitment to poverty eradication, respect for human rights and improving living standards. The Policy for International Development Co-operation 2024-2028 sets out human rights, gender equality, and environmental and climate affairs as the specific and cross‑cutting objectives that serve as pillars of all of Iceland’s development co-operation efforts, in alignment with its expertise. Its three priority partner countries for bilateral co-operation are Malawi, Sierra Leone and Uganda. Iceland is valued as a partner for its unique district-level approach to development co-operation.
Iceland supports its priority areas of gender equality and women’s empowerment, the blue economy, the environment and energy, human rights, and the humanitarian-development-peace nexus through its core and earmarked contributions to multilateral organisations. Increasing synergies between bilateral and multilateral development co-operation and humanitarian assistance is a priority for Iceland.
The 2023 OECD-DAC Peer Review found that Iceland optimises its development co-operation by focusing on a few key bilateral partner countries (Malawi, Sierra Leone and Uganda) to improve rural communities’ livelihoods and socio-economic living conditions. Iceland leverages its expertise in gender, geothermal energy, fisheries and land restoration through its training programmes and multilateral support. It works closely with a small number of multilateral organisations to advance gender equality, human rights, climate and the environment, and humanitarian assistance and to complement its bilateral portfolio. The review found that Iceland made progress on 12 of the 13 recommendations in its 2017 review. Discover insights from Iceland’s 2023 Peer Review and 2020 mid-term review, and learn from Iceland’s practices in Development Co-operation Tools Insights Practices (TIPs).
Iceland provided USD 111.7 million (preliminary data) of ODA in 2024 (USD 106.8 million in constant terms), representing 0.33% of GNI.1 This was a decrease of 3.6% in real terms in volume and a decrease in the share of GNI from 2023. Iceland is working to scale up its ODA programme, with an interim target of 0.35% ODA/GNI set out in the government’s 2023-27 fiscal plan. ODA volume has increased overall in the past ten years, despite a slight decrease in 2019. Iceland was just above its intermediary target of 0.35% GNI as ODA in 2023, as set in a parliamentary resolution, and halfway to meeting its 0.7% ODA/GNI international commitment. Total ODA on a grant-equivalent basis has the same value as net ODA under the cash-flow methodology used in the past, as Iceland provides only grants.2
In 2024, Iceland ranked 16th among Development Assistance Committee (DAC) member countries in terms of ODA/GNI ratio. Iceland stands out as the DAC country with the highest share of gross ODA to the United Nations (UN) system (core and non-core combined) at 61.3%. It also has the highest share among DAC members of bilateral allocable aid to persons with disabilities.
Iceland has committed to several international targets and DAC standards and recommendations. Learn more about DAC Recommendations.
Note: This table only includes information about ODA data-related DAC Recommendations. ODA: official development assistance; GNI: gross national income; DAC: Development Assistance Committee.
Iceland provided most of its ODA bilaterally in 2023. Gross bilateral ODA was 78.4% of total ODA disbursements. Fifty per cent of gross bilateral ODA was channelled through multilateral organisations (earmarked contributions).
In 2023, Iceland provided USD 67.7 million of gross ODA to the multilateral system, an increase of 17.2% in real terms from 2022. Of this, USD 23.9 million was core multilateral ODA (21.6% of total ODA), while USD 43.8 million was non-core contributions earmarked for a specific country, region, theme or purpose. Project-type funding earmarked for a specific theme and/or country accounted for 17.9% of Iceland’s non-core contributions and 82.1% was programmatic funding (to pooled funds and specific-purpose programmes and funds).
The UN system received 61.3% of Iceland’s contributions to multilateral organisations, of which USD 26.4 million (63.7%) represented earmarked contributions. Out of a total volume of USD 41.5 million to the UN system, the top three UN recipients of Iceland’s support (core and earmarked contributions) were United Nations Children’s Fund (USD 8.5 million), the World Food Programme (USD 5.6 million) and the United Nations Population Fund (USD 4.8 million).
See the section on Geographic, sectoral and thematic focus of ODA for the breakdown of bilateral allocations, including ODA earmarked through the multilateral development system.
Learn more by exploring the dashboard on DAC members’ use of the multilateral system.
In 2023, Iceland’s bilateral spending increased compared to the previous year. It provided USD 86.9 million of gross bilateral ODA (which includes earmarked contributions to multilateral organisations). This represented an increase of 15.8% in real terms from 2022.
In 2023, country programmable aid amounted to USD 35.6 million, or 40.9% of Iceland’s gross bilateral ODA, compared to the DAC country average of 43.1%. In-donor refugee costs were USD 9.6 million in 2023, representing 11.1% of Iceland’s gross bilateral ODA. This was an increase of 45.5% in real terms over 2022.
In 2023, Iceland channelled its bilateral ODA mainly through multilateral organisations and the public sector. Technical co-operation made up 13.5% of gross ODA in 2023.
In 2023, civil society organisations (CSOs) received USD 8 million of gross bilateral ODA, of which 7.6% was directed to developing country-based CSOs. Overall, seven per cent of gross bilateral ODA was allocated to CSOs as core contributions and 2.5% was channelled through CSOs to implement projects initiated by the donor (earmarked funding). From 2022 to 2023, the combined core and earmarked contributions for CSOs decreased as a share of bilateral ODA, from 9.6% to 9.2%. Learn more about Ireland’s approach to strengthen civil society capacity and the DAC Recommendation on Enabling Civil Society in Development Co-operation and Humanitarian Aid.
In 2023, Iceland’s bilateral ODA primarily focused on countries in Africa. USD 27.2 million was allocated to countries in Africa and USD 12.4 million to ODA-eligible countries in Europe (of which 88.9% for Ukraine), accounting respectively for 31.4% and 14.2% of gross bilateral ODA. USD 3.7 million was allocated to the Middle East. Countries in Africa were also the main regional recipient of Iceland’s earmarked contributions to multilateral organisations. These allocations are in line with Iceland’s geographic focus and policy priorities.
In 2023, 51.2% of gross bilateral ODA went to Iceland’s top 10 recipients. With exception of the top recipient Ukraine, the following top recipients are in Africa and correspond to its 3 priority partner countries. The share of gross bilateral ODA not allocated by country was 45.8%, of which 24.2% consisted of expenditures for processing and hosting refugees in provider countries.
In 2023, Iceland allocated 0.12% of its GNI to the least developed countries (LDCs). Iceland allocated the highest share of gross bilateral ODA (35.7%) to least developed countries in 2023, noting that 45.8% was unallocated by income group. Additionally, Iceland allocated 27.5% of gross bilateral ODA to land‑locked developing countries in 2023, equal to USD 23.9 million, and 0.2% of gross bilateral ODA to small island developing states (SIDS) in 2023, equal to USD 0.2 million.
Looking at the distribution of Iceland’s ODA in relation to “ODA per person in extreme poverty”,3 the amount was USD 0.1 in LDCs, USD 0.04 in lower middle-income countries and USD 0.1 in upper middle-income countries.
In 2024, Iceland provided USD 9.4 million of net bilateral ODA to Ukraine to respond to the impacts of Russia’s full-scale invasion, a 18.1% decrease from 2023 in real terms. USD 2.7 million of the amount was humanitarian assistance in 2024, a 30.7% decrease from 2023.
Support to contexts with high and extreme fragility was USD 34 million in 2023, representing 39.1% of Iceland’s gross bilateral ODA. Eighteen per cent of this ODA was provided in the form of humanitarian assistance, an increase from 17% in 2022, while 7.4% was allocated to peace, an increase from 6.5% in 2022. Learn more about the OECD States of Fragility platform.
In 2023, the largest focus of Iceland’s bilateral ODA was social infrastructure and services. Investments in this area accounted for 32.4% of bilateral ODA commitments (USD 28.1 million), with a strong focus on support to health and population (USD 9.9 million), water supply and sanitation (USD 7.9 million), and government and civil society (USD 6.3 million). ODA for other macro sectors totalled USD 22.7 million, with a focus on refugees in donor countries (USD 9.6 million). Humanitarian assistance amounted to USD 15.6 million (17.9% of bilateral ODA). Earmarked contributions to multilateral organisations also focused on social sectors and other macro sectors in 2023.
In the period 2022-23, Iceland committed 71.7% of screened bilateral allocable ODA to gender equality and women’s empowerment, compared to 81% in 2020-214 and a 2022-23 DAC average of 45.8%. This is equal to USD 46.4 million of screened bilateral allocable ODA in support of gender equality on average per year. In addition:
The share of screened bilateral allocable ODA committed to gender equality and women’s empowerment as a principal objective was 14.7% in 2022-23, compared with the DAC average of 4%.
Iceland includes gender equality objectives in 57.7% of ODA for humanitarian aid, above the 2022‑23 DAC average of 19.1%.
Iceland screens all bilateral allocable ODA activities against the DAC gender equality policy marker (100% in 2022-23).
Iceland committed USD 400 thousands of ODA to end violence against women and girls and USD 3.2 million to support women’s rights organisations and movements, and government institutions on average in 2022-23.
Learn more about the DAC Recommendation on Gender Equality and the Empowerment of All Women and Girls in Development Co-operation and Humanitarian Assistance and the DAC Recommendation on Ending Sexual Exploitation in Development Co-operation, and by exploring the dashboard on DAC members’ development finance for gender equality.
In 2022-23, Iceland committed 48.9% of its total bilateral allocable ODA (USD 31.7 million) in support of the environment and the Rio Conventions, up from 47.9% in 2020-21. The DAC average was 39% in 2022-23. In addition:
Sixteen per cent of screened bilateral allocable ODA focused on environmental issues as a principal objective, compared with the DAC average of 9.6%.
Thirty-eight per cent of total bilateral allocable ODA (USD 24.5 million) focused on climate change overall, up from 36.6% in 2020-21 (the DAC average was 34.8%). Iceland had a greater focus on adaptation (32.6%) than on mitigation (25.4%) in 2022-23.
Thirteen per cent of screened bilateral allocable ODA (USD 8.4 million) focused on biodiversity overall, up from 8.9% in 2020-21 (the DAC average was 7.6%).
Learn more about the DAC Declaration on Aligning Development Co-operation with the Goals of the Paris Agreement on Climate Change.
Note: Individual Rio Markers should not be added up as this can result in double counting.
The OECD’s tracking of ODA for the sustainable ocean economy shows that Iceland committed USD 3.4 million in support of the conservation and sustainable use of the ocean in 2023, USD 2.3 million more than in 2022. The 2023 value is equivalent to 5.1% of Iceland’s bilateral allocable ODA.
In 2023, Iceland:
Allocated 18.8% of its bilateral ODA (USD 16.3 million) to core poverty-reducing sectors as defined by Sustainable Development Goal (SDG) 1.a.1. This indicator captures grants to basic social services (basic health and education, water supply and sanitation, multisector aid for basic social services) and development food aid. In addition, 0.3% of bilateral ODA (USD 0.3 million) went to social protection support.
Committed USD 23.3 million (34.2% of its bilateral allocable ODA) to address the immediate or underlying determinants of malnutrition in developing countries across a variety of sectors, such as emergency response, health and education.
Committed USD 34 million (49.9% of its bilateral allocable ODA) to development co-operation projects and programmes that promote the inclusion and empowerment of persons with disabilities.
Regarding the payment of local tax and customs duties for ODA-funded goods and services, Iceland does not typically seek exemptions. It does not make information available on the OECD Digital Transparency Hub on the Tax Treatment of ODA.
Committed USD 11.8 million (17.3% of its bilateral allocable ODA) to promote aid for trade and improve developing countries’ trade performance and integration into the world economy in 2023.
Total Official Support for Sustainable Development (TOSSD) is an international statistical standard that monitors and increases transparency of all official and officially supported resources for financing the SDGs in developing countries, as well as for addressing global challenges. In 2023, activities reported by Iceland as TOSSD totalled USD 112.4 million, up from USD 100.9 million in 2022. Iceland’s TOSSD activities mostly targeted SDG 1 (no poverty), SDG 3 (good health and well-being) and SDG 2 (zero hunger). Activity-level data on TOSSD by recipient are available at: https://tossd.online.
In October 2022, the Ministry of Foreign Affairs (MFA) underwent an institutional reorganisation, with two separate directorates in charge of international affairs and policy and development co-operation. While the Directorate of International Affairs and Policy manages the humanitarian assistance portfolio, the Directorate for Development Cooperation oversees bilateral co-operation and CSOs, development policy, co-ordination and multilateral organisations, the environment, energy and the private sector, and ocean affairs. The MFA is working to ensure coherence and co-ordination across the two directorates, particularly to provide a joint response in fragile contexts. Sustainable Iceland – a co-operation platform led by the Prime Minister’s Office – brings together all ministries and the association of municipalities to measure progress towards implementing the SDGs’ targets domestically. The GRÓ Centre for Sustainable Development offers training programmes in Iceland to developing country professionals, focused on Icelandic expertise in gender, geothermal energy, fisheries and land restoration.
In 2022, the MFA had a total of 44 staff working on development co-operation, 20 of which are based at headquarters and 8 in Iceland’s permanent missions in Geneva, New York, Paris and Rome, and the embassies to Malawi and Uganda. In 2023, Iceland recruited a chargé d’affaires in Sierra Leone. Iceland can also rely on the expertise of 16 locally recruited staff in its embassies in Malawi and Uganda.
A main mechanism for consulting stakeholders is the Icelandic Committee for Development Cooperation. Civil society and non-governmental organisations have five representatives that participate in the Icelandic Committee for Development Cooperation and regular consultations are held between the ministry and non‑governmental organisations and CSO representatives.
Internal systems and processes help ensure the effective delivery of Iceland’s development co-operation. Select features are shown in the table below.
Access the full list of providers at this link: Development Co-operation Profiles.
2023 OECD-DAC Peer Review of Iceland: https://doi.org/10.1787/a1552817-en
2020 OECD-DAC mid-term review of Iceland: https://one.oecd.org/document/DCD/DAC/AR(2024)3/27/en/pdf
Ministry for Foreign Affairs: https://www.government.is/topics/foreign-affairs/international-development-cooperation
Iceland has been a member of the OECD Development Assistance Committee (DAC) since 2013.
The methodological notes provide further details on the definitions and statistical methodologies applied, including the grant-equivalent methodology, core and earmarked contributions to multilateral organisations, country programmable aid, channels of delivery, bilateral ODA unspecified/unallocated, bilateral allocable ODA, the gender equality policy marker, and the environment markers.
This work is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the Member countries of the OECD.
This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.
The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law.
Note by the Republic of Türkiye
The information in this document with reference to “Cyprus” relates to the southern part of the Island. There is no single authority representing both Turkish and Greek Cypriot people on the Island. Türkiye recognises the Turkish Republic of Northern Cyprus (TRNC). Until a lasting and equitable solution is found within the context of the United Nations, Türkiye shall preserve its position concerning the “Cyprus issue”.
Note by all the European Union Member States of the OECD and the European Union
The Republic of Cyprus is recognised by all members of the United Nations with the exception of Türkiye. The information in this document relates to the area under the effective control of the Government of the Republic of Cyprus.
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← 1. DAC members adopted the grant-equivalent methodology starting from their reporting of 2018 data as a more accurate way to count the donor effort in development loans. See the methodological notes for further details.
← 2. Non-grants include sovereign loans, multilateral loans, equity investment and loans to the private sector.
← 3. Aid per person in extreme poverty is calculated by dividing net ODA (bilateral and imputed multilateral) by the population in extreme poverty in each country. Group averages are calculated based on a weighted average of aid per person in extreme poverty and the number of people in extreme poverty for each country in the group. For more information on this indicator, please see here.
← 4. The use of the recommended minimum criteria for the marker by some members in recent years can result in lower levels of ODA reported as being focused on gender equality.