OECD Regulatory Policy Outlook 2025

Regulatory impact assessment (RIA) has been increasingly emphasised since the issuance of the amended “Governmental resolution on preparation and formulation of law proposals and parliamentary resolution” in 2023. The amendments emphasised the coverage of RIA requirements to diverse fields such as equality, environment and human health for all primary laws, in addition to the previous focus on the budget and public sector. Iceland’s ex post evaluation system remains voluntary, and in practice few ex post evaluations are conducted for both primary laws and subordinate regulations.

The central consultation portal was renewed with the aim to increase transparency in 2023 after 5 years of operation. A new feature includes a list of main stakeholders who are notified and invited to comment. Anyone can still provide comments to regulatory proposals, which are always made publicly available, and subscribe to automatic notifications from the portal. Most RIAs are posted on the consultation portal. Additional features included setting longer consultation periods, which range from two to four weeks, and a requirement for reactions to stakeholder comments in the consultation portal to be published within three months of the end of the consultation period. Deciding to undertake limited or no consultation with stakeholders has been extended to include legislative intent documents and parliamentary resolutions, which needs to be explained. Proposed parliamentary resolutions should now be published on the consultation portal.

The Department of Legislative Affairs was moved from the Prime Minister’s Office to the Ministry of Justice in 2022. The core responsibility for regulatory oversight continues to lie with the department. The Department of Public Finances (DPF) in the Ministry of Finance and Economic Affairs is responsible for developing guidance materials and overseeing RIA. The DPF also reviews RIAs on gender equality.