In 2016, Iceland integrated its bilateral development agency within the MFA to strengthen its institutional framework and operational capacity for development co-operation. Within the ministry, the Directorate of International Development Cooperation is responsible for Iceland’s development co-operation policy formulation, planning, administration, evaluation and co-ordination.
Iceland provided USD 71.9 million of ODA in 2021, representing 0.28% of GNI. This was an increase of 11.7% in real terms in volume and a slight increase in the share of GNI from 2020. Iceland is currently below its intermediary target of 0.35% GNI as ODA in 2022, as set in a parliamentary resolution, and its 0.7% ODA/GNI international commitment. Iceland provided all of its ODA as grants in 2020.
Iceland ranks 19th among Development Assistance Committee (DAC) members for its ODA/GNI ratio. ODA volume has overall increased over the past ten years, in spite of a slight decrease in 2019. Iceland places a strong emphasis on gender equality and the environment. Almost 90% of its screened bilateral allocable aid was committed to gender equality and women’s empowerment, as either a principal or significant objective in 2020. Iceland also committed almost two-thirds of its total bilateral allocable aid in support of the environment and climate.
Global Partnership monitoring trend
Click here for a snapshot of Iceland's results from the two most recent Global Partnership monitoring rounds (2018 and 2016). The Global Partnership monitoring process and framework have been revised, and the new round will take place from 2023 to 2026. This profile will be updated periodically as new data is generated by the monitoring exercise.
The 2020 OECD-DAC mid-term review found that Iceland plays to its sectoral expertise and maintains a poverty focus in its overall development co-operation portfolio. Iceland is working to scale up its ODA programme and expand opportunities for building the development expertise and skills of staff in the Ministry of Foreign Affairs (MFA) following the merger of Iceland’s development agency with the MFA.