1.1.1.WATER RESOURCES Iceland's climate is maritime with cool summers and mild winters. The temperature decreases and becomes more arctic towards the interior, partly because of an increase in altitude and partly because temperature in winter decreases further from the shore. Most precipitation falls when the wind is blowing from east to south. Accordingly, the highest precipitation is found in the southeastern parts, with estimated maximum annual values of more than 4,000mm on glaciers. In southwest and west Iceland the yearly precipitation is 1,000-1,600 mm in the lowlands at the coast, but only 700-1,000mm further inland. The precipitation is lowest in northern and northeastern districts being 400-600mm in the lowland areas and less than 400mm north of the Vatnajökull glacier. Iceland has a long-term average annual precipitation of 1,940mm/year. The long-term average of annual renewable water resources is stated in 170,000million m3/year of which 100 per cent are considered as internal water resources. In 2009, the total dam (reservoir) capacity was stated as 1.860 million m3, which is mainly dedicated to hydropower generation as a key source for internal needs (in addition to geothermal power). Generally speaking, there is abundant water per person and the majority of the population has access to plentiful freshwater supplies. Iceland is a volcanic island predominantly formed of basaltic rock from the Quaternary and Tertiary Ages. The oldest basalt rocks – up to 15 million years old – are found in west-northwest and east-southeast Iceland. The neo-volcanic area is confined to an axial zone that runs through the country. Postglacial lava flows cover about 10 per cent of Iceland and the historical flows account for around one-sixth of the lava. Between 30 and 40 volcanoes have erupted since historical records began in Iceland, and in recent centuries an eruption has started on average every fifth year. Iceland is very rich in natural heat – thermal areas are divided into two classes on the basis of the maximum subsurface temperature of the thermal water. Low -temperature areas have temperatures below 150°C at a depth of 1,000m, while in high-temperature areas the temperature from the surface down to 1,000m is above 200°C. Earthquakes are frequent in Iceland – ones larger than 6 on the Richter scale struck in the southern lowlands in both 2000 and 2008.

1.1.2.WATER USE Water withdrawal in the country in 2005 was estimated at a total of 165 million m3. Only 3 per cent of this (5 million m3) was provided by surface water bodies whilst 97 per cent came from groundwater abstraction (160 million m3). This water abstraction can be itemised by user sector. In 2005, it was estimated that water dedicated to agriculture reached 70 million m3. For drinking and other urban uses total withdrawal reached 80 million m3, and for industrial uses only 15 million m3 were provided. Although abundant, the country’s water resources are not limitless and not evenly distributed. There is also a growing public demand to take a greater account of nature conservation concerns and sustainable management in the utilisation of hydro- and geothermal energy sources.

1.2.WATER QUALITY, ECOSYSTEMS AND HUMAN HEALTH Iceland's environmental situation and problems differ from those of other European countries in that it has a small population which depends primarily on natural resources and their efficient and sustainable use. From an Icelandic perspective, suitable indicators for analysing its environmental performance would focus on the management of fish stocks, renewable energy sources and wilderness. However, it is important to highlight that the volcanic soils (andosols) are extremely friable and erosion is exacerbated by windy conditions over most of the country’s area. Whilst birch woodland may previously have covered 25 per cent or more of the country, currently it has been reduced to just over 1 per cent. A third and possibly up to a half of the pre-settlement vegetation cover may now have been either lost or severely degraded. Altered vegetation composition due to grazing, cutting and burning of woodlands has resulted in reduced vegetation cover, the formation of barren lands and vegetation degradation. Decreased vegetation vigour has led to increased cryoturbation and solifluction processes that accelerate erosion. Vast areas have been desertified by over-exploitation of soil capacity (and the speed of erosion has been also magnified by volcanic activity and harsh weather conditions). The Soil Conservation Service of Iceland (SCS), founded in 1907, is one of the oldest institutes of its kind in the world, and is a governmental agency (under the ministry of Environment). The main tasks of the SCS include combating desertification, sand encroachment and other soil erosion; promotion of sustainable land use; and reclamation and restoration of degraded land. The work is carried out on different levels, from policy-making and research, to extension services and management of large- and small-scale reclamation projects. There is generally good access to good quality drinking water, especially in areas with recent lava flows where the bedrock is very permeable. There the precipitation seeps down into the ground creating large groundwater reservoirs and spring-fed rivers with very stable clear water runoff throughout the year. These waters, entirely different and much richer than the North American, Greenland and Scandinavian lakes on similar altitudes that drain old continental shield rocks, provide habitats for spectacular plant and animal communities. The productive rivers and lakes are an important amenity for recreational activities. Salmon and Country Overview - Iceland trout fisheries have been of high economic value since Iceland’s initial settlement, contributing as much as 50 per cent of the total income for residents in productive salmon areas