Our Favourite Eco-Friendly Places in Iceland

Sparkling fjords, glacier-crusted peaks, and dark, sweeping lava fields. Few places on Earth exhibit as much awe-inspiring natural beauty as Iceland, and even fewer are as committed to protecting it. Nearly all of its electricity and heating comes from geothermal and hydro sources, and its capital enjoys notably low pollution levels. The nation is one of the world’s most sustainable destinations, and exploring eco-friendly Iceland is easier than ever. 

For visitors, embracing the country’s commitment means choosing to explore its positive-impact destinations that support the well-being of our planet. Keep reading to explore our favorite eco-friendly places in Iceland that combine nature, innovation, and sustainability.

10 Eco-Friendly Places in Iceland

Travelers seeking to support sustainable travel and responsible tourism when they visit Iceland can begin right here. Let this list be your guide to embracing genuine sustainable tourism. From power plants running on geothermal energy to environmentally friendly farms, these are the green destinations you can't miss.

1. Sólheimar Eco-Village (South Iceland)

Tucked off the Golden Circle route, the village of Sólheimar invites you into one of Iceland’s most inspiring sustainability experiments. Founded in July 1930 by Sesselja Sigmundsdóttir, its name means “Home of the Sun.” It’s a fitting moniker for a place that blends organic farming, social inclusion, and ecological innovation.

Sólheimar, often called Iceland’s first and only eco-village, is also recognized as one of the earliest of its kind globally. Around 100 residents live here: people with and without disabilities collaborate, learn, and work side-by-side in a community focused on sustainability. Residents maintain organic greenhouses, a bakery, and artisan workshops creating ceramics, candles, and soaps. 

When visiting Sólheimar Eco-Village, you can explore the community, purchase handmade goods, and participate in locally-led creative workshops. More importantly, it’s among the best eco-friendly places in Iceland to witness sustainable living and self-sufficiency in action. 

2. Blue Lagoon (Reykjanes Peninsula)

As you explore eco-friendly Iceland, few stops are as stunning as the Blue Lagoon. Besides being a globally famous attraction, the Blue Lagoon is a pioneering model of sustainable tourism and industrial symbiosis. Remember, its iconic milky-blue pool is not a natural lake. Rather, these waters are the mineral-rich discharge from the nearby Svartsengi Geothermal Power Plant.

The journey of Blue Lagoon’s striking waters begins deep underground, where seawater and freshwater mix and are superheated by magma. At the power plant, the steam and hot water generate electricity and supply district heating. The mineral-rich discharge from the plant is then channelled into the lagoon.

What emerges is a warm pool infused with silica, algae, and salts, inviting visitors to enjoy a relaxing soak. It’s a brilliant embodiment of a circular-economy mindset: energy production, waste reuse, and tourism all intertwine.

3. Friðheimar Greenhouse Farm (South Iceland)

How do you grow bright red, tasty tomatoes in the sub-arctic climate of Iceland? At Friðheimar, the answer lies beneath the earth. This family-run farm uses geothermal energy and advanced greenhouse technology to maintain a warm, Mediterranean-style environment year-round. 

With around 5,000 square meters of glasshouse space, the farm grows up to approximately 40% of Iceland’s tomatoes. Incredibly, they do so entirely on renewable heating and lighting. Beyond that, Friðheimar also uses biological pest control systems and pure Icelandic water to grow its tomatoes sustainably.

Travelers can tour the sprawling farm to learn about the different sustainable practices. But the highlight comes after the tour: a fresh, farm-to-table meal, served right among the plants. In eco-friendly Iceland, Friðheimar is truly a hands-on lesson in how innovation and good food can come together.

4. Snæfellsjökull National Park (West Iceland)

On the far western tip of the Snæfellsnes Peninsula lies one of Iceland’s most storied landscapes: Snæfellsjökull National Park. Here, a glacier-capped stratovolcano rises from the sea, black lava fields sprawl inland, and seabirds thunder from cliff ledges. Its stunning variety of natural wonders earned the peninsula the nickname “Iceland in miniature.”

Perhaps more significantly, the region is a standout in sustainable practices. The entire Snæfellsnes Peninsula became the first destination in Europe to earn EarthCheck certification.

The national park itself serves as a strong example of responsible tourism. Park management focuses on conserving fragile ecosystems, from moss-covered lava fields to coastal bird cliffs (home to puffins and kittiwakes). As a guest, you can help the area minimize its environmental footprint. Everyone’s encouraged to tread lightly: stay on marked paths, respect temporary closures, hire a local guide, and leave no trace.

5. Krauma (West Iceland)

When you travel in Iceland, the geothermal baths at Krauma are a tranquil and telling stop. Nestled in the quiet countryside of West Iceland near Reykholt, Krauma draws its water directly from the mighty Deildartunguhver hot spring, Europe’s most powerful spring.

Rather than relying on artificial heating, the spa blends the scalding geothermal flow with pristine glacial runoff from nearby ravines. The process creates soothing bath temperatures without the need for added chemicals. The facility features spa pools, steam rooms, and saunas. An on-site restaurant adheres to Krauma’s eco-conscious ethos, serving Icelandic cuisine made with locally sourced produce.

6. Hellisheiði Geothermal Power Plant (Near Reykjavík)

A stop at Hellisheiði is a must for anyone exploring eco-friendly Iceland. Nestled on the Hengill volcanic ridge just outside Reykjavík, this facility is among the world’s largest geothermal power stations. It generates hundreds of megawatts of clean electricity and supplies hot water to the capital’s district-heating network.

Visitors are welcomed at the on-site Geothermal Exhibition, where interactive displays guide you through Iceland’s renewable energy story.

It’s only a 20- to 30-minute drive from Reykjavík and can be easily paired with a Golden Circle detour. Plan for at least an hour at the exhibition. By stopping here, you’re standing in the heart of how Iceland is building a green future with a low ecological footprint.

7. Vök Baths (East Iceland)

Resting on the shores of Lake Urriðavatn, Vök Baths is a sublime example of eco-friendly Iceland at work. The name “Vök” refers to the ice-free patches that form on the lake in winter, revealing warm springs beneath the surface.

The signature feature is the floating geothermal pools on the lake’s surface, the only ones of their kind in Iceland. The hot spring water is so pure that it’s certified as drinkable. You can even sip it at the on-site tea bar, where it’s brewed with local herbs.

From sustainable timber architecture to local ingredients from neighbouring farms, Vök Baths keeps low-impact design and local sourcing in mind. The pools are heated naturally by geothermal water (no chemical-heavy processes), while the cold lake water offers a natural contrast.

8. Geosea Geothermal Sea Baths (Húsavík, North Iceland)

Perched on a cliff above Skjálfandi Bay near Iceland’s whale watching capital, Húsavík, GeoSea is a beautiful example of sustainable travel. Unlike most Icelandic spas that use freshwater, GeoSea taps into heated seawater channeled from two deep boreholes. The water, rich in minerals and naturally warm, was originally considered too saline for house heating but perfect for bathing.

The infinity pools are carved into the cliffside, overlooking the bay, passing whales, distant glaciers, and even the northern lights. All this while operating without heavy chemical treatment: steady flow from the drillholes means the water stays fresh and clean.

9. Nauthólsvík Beach (Reykjavik)

For an authentically local and budget-friendly taste of eco-friendly Iceland, head to Nauthólsvík Geothermal Beach. It's located right in the capital city of Reykjavík, making it very accessible, even for travelers on a quick holiday.

This man-made lagoon transforms a rocky North Atlantic shoreline into a golden beach warmed by the city’s geothermal district-heating system. Excess hot water flows into hot tubs and the lagoon, where it blends with cold seawater, making swimming possible year-round.

This city-run spot showcases Iceland’s commitment to sustainability and quality of life by using renewable energy for public recreation. If you’re up for it, alternate between the geothermal hot tub and an icy Atlantic plunge.

10. Drangsnes Hot Tubs (Westfjords)

The remote, breathtaking Westfjords are a prime region for sustainable tourism, known for their dedication to conservation and minimal development. Here, on the waterfront in the tiny Drangsnes village, you'll find three simple, unpretentious hot tubs fed by natural geothermal energy. Free to use, these hot tubs perfectly embody eco-friendly Iceland and the practical, eco-friendly use of its natural heat.

Unlike large commercial spas, Drangsnes offers an authentic, community-driven experience. The tubs are heated by water straight from a nearby spring, ensuring a continuous flow of fresh, pure water. It’s a stunning vantage point for watching the fjord, potentially spotting seals, or even viewing the Northern Lights.

A Sustainable Journey in Iceland

More than a place of rugged beauty, Iceland serves as the blueprint for green living. From renewable-powered cities to geothermal pools and greenhouses, the Land of Fire and Ice shows what sustainable innovation looks like. By visiting destinations like the ones on this list, you're exploring eco-friendly Iceland and supporting the core values that keep this land pristine. Travel thoughtfully, choose responsibly, and help ensure that Iceland’s epic mountains, glaciers, and coastlines remain unspoiled for generations to come.