Trust and the Green Transition in Iceland and Beyond

Iceland is a good testing ground for climate policies

Reykjavík from Hallgrimskirkja. Photo: Tim Trad, unsplash.

Summary: The success of decarbonization efforts worldwide depends—at least partly—on public support for climate-friendly policies, particularly as the green transition is likely to bring widespread social uncertainties. Investigating political and institutional trust in relation to these policies is therefore crucial. The population of Iceland is accustomed to the discussion and implementation of green policies as the country can be seen as a forerunner in renewable energy.

A just transition

The green transition—the shift from carbon-intensive to sustainable, low-carbon energy systems—is a cornerstone of addressing climate change. A just transition points to the effort required to ensure that the green transition is equitable, and leaves no one behind. This includes policies to retrain workers whose jobs are phased out, and mitigating economic and social inequalities exacerbated by the transition. Just transition policies bridge the domains of climate action and social welfare, requiring significant public investments and social solidarity—aspects that could be hard to foster in environments with low levels of trust.

A just transition involves complex social, economic, and political transformations that often hinge on public support. The academic literature highlights the importance of political trust in order for there to be public support for climate policies. Confidence in government leaders has been shown to shape perceptions of policy effectiveness, helping to mitigate concerns about outcomes and implementation. 

Different types of trust

Political trust refers to confidence in the intentions and effectiveness of government leaders, while institutional trust in this field of research encompasses broader confidence in organizations, both state and non-state actors. Breaking trust into specific types is crucial for identifying the mechanisms that drive public support for climate policies.

Large-scale surveys such as the International Social Survey Programme (ISSP) provide valuable insights into how people’s climate policy support intersect with their trust in various institutions. In 2020, the ISSP included an environmental supplement for Iceland which offered a unique opportunity to examine public attitudes toward climate policies and their underlying trust dynamics. Along with several colleagues, I analyzed this data to take a deeper look at how combined political trust in the state, plus other sets of relevant institutions, shape public preferences for energy transition policies. We chose Iceland as a case study as the country is a forerunner in relying on renewable energy for heating and electricity for households.

Iceland: A forerunner in renewable energy

In 2020, Iceland's share of renewables in its primary energy supply was over 85 per cent, which is one of the highest amongst the world’s developed economies. Additionally, Icelandic citizens have been keen on protecting their country’s nature and natural resources rather than focusing on heavy industry (Bjarnadóttir et al., 2021). This widespread concern, coupled with the country’s reliance on renewable energy, provides a unique context for examining how trust influences support for climate policies: The population is familiar with renewable technologies, which provides a useful baseline for assessing the public reception of newer policies such as carbon taxes or subsidies for emerging renewable technologies.

Trust should extend beyond trust in government

In our article ‘When trusting the state is not enough: broader institutional trust and public support for energy transition policies’, I and several of my colleagues argue that trust must extend beyond governments to include a wider array of institutions that collectively support the green transition. That is, trust in other institutions like universities and the media is important in addition to trusting the government. This widespread trust between different actors is needed for such a significant societal shift, particularly as complex policy changes tend to engender widespread social uncertainty. This broader trust base can enable the public to view these institutions as credible and capable partners in navigating the transition, ensuring policies are seen as fair, inclusive, and effective.

In the study, we carried out a quantitative analysis that focused on both political and institutional trust and how these influence public support for energy transition policies in Iceland. We examined three specific policies: increasing taxes on fossil fuels, subsidizing renewable energy, and supporting a just transition for workers displaced by climate policies. Several findings stood out:

  • The role of institutional trust: Broader institutional trust, including both trust in state and non-state actors (like universities and the media), was positively associated with support for all three policies. This suggests that fostering trust across a range of institutions can enhance public buy-in for ambitious climate actions.
  • Political trust’s narrower impact: Political trust primarily influenced support for policies perceived as directly costly, such as taxes on fossil fuels. This indicates that political trust might be more critical when policies involve clear financial trade-offs for individuals, which aligns with the literature in the field.
  • Policy preferences across age groups: Younger people were generally more supportive of taxation and subsidies compared to older age groups, reflecting global trends of heightened climate concern among younger generations.

Prior studies have focused on how political trust affects people’s support for tax policies (such as those by Fairbrother, Johansson Sevä, and Kulin in 2019; and Harring and Jagers in 2013). We build on this by examining how political trust influences climate policy support, while also expanding the existing literature by introducing a broader trust measure — one that has not been previously examined in relation to climate policy support. Theoretically, we draw on Ostrom’s foundational work on polycentric governance to argue why a broader trust measure is important for fostering policy support. Ostrom’s work emphasizes that trust across multiple institutions is crucial for collective action to address global challenges like climate change; in fact, it enhances the effectiveness of such action.

Put another way, the example of Iceland demonstrates how trust—both towards state and non-state actors—can be a good foundation for sustainable and equitable climate action. By focusing on trust in its various forms, policymakers can identify strategies to foster trust and support for the complex changes required in the green transition.

This article is based on research published in the paper ‘When trusting the state is not enough: broader institutional trust and public support for energy transition policies’ by Bjarnadóttir, S., Fairbrother, M., Ólafsdóttir, S., & Beckfield, J. Environmental Sociology, (2024) pp1-12.


Research into trust can shed light on the green transition.

This article has been published in response to readers' interest in trust in the Nordic region and climate change.


Further reading

E. Ostrom, ‘Beyond Markets and States: Polycentric Governance of Complex Economic Systems.American Economic Review, 100(3), 641-672.

M. Fairbrother, I. Johansson Sevä, and J. Kulin, ’Political Trust and the Relationship Between Climate Change Beliefs and Support for Fossil Fuel Taxes: Evidence from a Survey of 23 European Countries.Global Environmental Change (2019) 59.

N. Harring and S. Jagers‚ 'Should We Trust in Values? Explaining Public Support for Pro-Environmental Taxes.‘ Sustainability (2013) 5, pp. 210–227. 

Sóllilja Bjarnadóttir, Inga Rún Sæmundsdóttir, Sigrún Ólafsdóttir, Þorvarður Árnason and Guðbjörg Andrea Jónsdóttir. 'Hefur umhverfisvitund aukist? Viðhorf Íslendinga til umhverfismála og stóriðju 1987-2017'. [Has environmental awareness increased? Attitudes of the Icelandic public towards environmental issues and heavy industry 1987-2017]. Stjórnmál og stjórnsýsla, 17 (2021) pp. 49-78.