1.

Declare that Iceland has failed to fulfil its obligations under Article 7 of the EEA Agreement by failing to make the Act referred to at point 7 of Chapter XIII and point 9c of Chapter XVII of Annex II to the EEA Agreement, as well as points 1h, 1i, 1j, 32 and 32g of Annex XX to the EEA Agreement (Regulation (EU) 2019/1010 of the European Parliament and of the Council of 5 June 2019 on the alignment of reporting obligations in the field of legislation related to the environment, and amending Regulations (EC) No 166/2006 and (EU) No 995/2010 of the European Parliament and of the Council, Directives 2002/49/EC, 2004/35/EC, 2007/2/EC, 2009/147/EC and 2010/63/EU of the European Parliament and of the Council, Council Regulations (EC) No 338/97 and (EC) No 2173/2005, and Council Directive 86/278/EEC), as adapted by Protocol 1 to the EEA Agreement, part of its internal legal order, and

2.

Order Iceland to bear the costs of these proceedings.

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By this application, the EFTA Surveillance Authority (‘ESA’) seeks a declaration from the Court that Iceland has failed to adopt the measures necessary to make the Act referred to at point 7 of Chapter XIII and point 9c of Chapter XVII of Annex II to the EEA Agreement, as well as points 1h, 1i, 1j, 32 and 32g of Annex XX to the EEA Agreement (Regulation (EU) 2019/1010 of the European Parliament and of the Council of 5 June 2019 on the alignment of reporting obligations in the field of legislation related to the environment, and amending Regulations (EC) No 166/2006 and (EU) No 995/2010 of the European Parliament and of the Council, Directives 2002/49/EC, 2004/35/EC, 2007/2/EC, 2009/147/EC and 2010/63/EU of the European Parliament and of the Council, Council Regulations (EC) No 338/97 and (EC) No 2173/2005, and Council Directive 86/278/EEC), as adapted by Protocol 1 to that Agreement, part of its internal legal order, as required by Article 7 EEA.

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ESA sent a letter of formal notice to Iceland on 28 March 2025, to which Iceland submitted a response on 10 June 2025, stating that it had not yet taken the necessary measures to implement the Act. In the response, it was indicated that the implementation was expected by September 2025.

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ESA delivered a reasoned opinion on 10 September 2025 maintaining its conclusions set out in the letter of formal notice and giving Iceland two months to take the necessary measures to comply with the reasoned opinion, i.e. no later than 10 November 2025.

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Iceland did not reply to the reasoned opinion before the expiry of the time limit but notified on 11 November 2025 that Articles 1 and 2 of the Act had been made part of the internal legal order. On 1 December 2025, Iceland further notified that Articles 4 and 8 of the Act had been made part of the internal legal order.

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When the deadline set in the reasoned opinion expired, Iceland had neither informed ESA of any measures adopted to fully make the Act part of its internal legal order, nor was ESA in possession of any other information indicating that the Act had been made part of Iceland´s internal legal order.

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Since Iceland had not complied with the reasoned opinion by the deadline set therein, ESA on 11 March 2026, decided to bring the matter before the Court, pursuant to Article 31 SCA.

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ESA notes that at the point of lodging the present application, Iceland has neither made the Act as such part of its internal legal order, nor has it informed ESA of having done so.