From an EU vote to sustainability: Where does Iceland’s fishing sector go from here?

Iceland is making waves in sustainable fish production as the island country faces a pivotal moment with a vote to restart European Union (EU) negotiations planned for later this year, which could have lasting impacts on the country’s fishing sector.

Iceland plays a key role in the global fish market, accounting for approximately 1.1% of total wild-caught fish globally. Icelandic fishing fleets caught over 994,000 tons of fish in 2024, 28% less than in 2023, according to Statistics Iceland. The decline was largely driven by not catching capelin that year.

Despite its small population, Iceland has the 5th highest gross domestic product (GDP) per capita globally, driven in part by its fishing industry, according to a European Parliament briefing. The fishing industry generates about 12% of Iceland’s total GDP, and the sector employs roughly 7% of the population, according to the Government of Iceland.

“The Icelandic fishing industry has always been vital for the Icelandic economy,” Sigrid Merino Sardà, CEO of Iceland Responsible Fisheries (IRF), told AgTechNavigator. “Both in technology and in regulation, it’s always striving to be better — to be stronger — because of its importance in Icelandic economy and Icelandic society.”

What joining the EU could mean for Iceland’s fishing industry?

This year, Iceland faces a crucial decision for its future — to join the EU or remain outside the bloc. Iceland will hold a referendum in August to resume negotiations on EU accession, following a failed attempt to join the European bloc in 2009 after a banking crisis, according to Reuters reporting.

Iceland’s fishing industry has been key to the EU debate. Currently, foreign fishing vessels operate in Icelandic waters, but they have done so under the country’s laws and regulations, which could change if Iceland joins the EU, Merino Sardà explained.

“Iceland is aware that … entering the European Union, potentially, they would have to open up their fishing policy or their fishing industry, which has always been a turning point in those negotiations,” she elaborated.

The referendum also comes as Icelandic fishers and fish processors face some challenges. Fishing and fish processing net profits declined from 25% in 2023 to 16% in 2024, with fishing and processing of fishmeal and fish oil dropping from 48% to 10.6% during the same period, according to Statistics Iceland data shared on March 31, 2026.

Iceland’s long sustainability, traceability history

Iceland’s fishing industry has expanded while addressing traceability and sustainability. IRF offers two certifications for Icelandic fisheries, including one on management and another on chain of custody, administered through a third-party certification body, Merino Sardà said.

Iceland’s fishing framework stretches back to 1948 with the passage of the Law on Scientific Conservation of Continental Shelf Fisheries, which established conservation zones along the country’s continental shelf. From there, the Iceland developed a quota system where licensed fisheries could catch a certain amount of a specific fish, adjusting the quota yearly to ensure to prevent overfishing of a specific species, Merino Sardà explained.

Iceland’s small geography plays to the country’s benefit when it comes to traceability, Merino Sardà explained.

Per Iceland law, Directorate of Fisheries officials report on all catches to ensure quotas are met and that bycatch does not happen, she said. Then, fishers can be rewarded or penalized for fishing under or above the quotas, she added.

“The Icelandic fishing industry is of utmost importance for our economy. It’s still a small system in terms of tracing. ... So, the traceability of these fisheries is quite simple — quite straightforward,” she noted.