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According to the united nations development program (undp) human development reports, the Republic of Iceland has the second-highest standard of living in the world. The country is greatly admired for its high income and literacy rates, long life spans, strong social cohesion, and extensive social welfare programs. One hundred percent of the population has access to safe drinking water and improved sanitation. Iceland is one of the few European countries that have elected not to join the European Union (EU). Surrounded by the Greenland Sea, the North Atlantic Ocean, and the Denmark Strait, Iceland has 3,081 miles (4,970 kilometers) of coastline. Because of the North Atlantic, Iceland's climate is temperate with mild, windy winters and damp, cool summers. The capital city of Reykjavik is the northernmost capital in the entire world.

Iceland is a land of kinetic steam because of its active volcanoes and geysers. The Askja volcano is one of the most important geographic features of the country. In 1875, fallout from this volcano created major economic upheaval as 20 percent of the population fled to Canada and the United States.

Earthquakes occur on a daily basis in Iceland, producing new fissures. As a result, the landscape of Iceland rapidly changes as new islands appear and gradually erode to extinction. The country is mostly flat with intermittent peaks and ice fields, and the coast is broken up by bays and fiords.

Modern Iceland has embraced a vast range of new environmental technologies, and was one of the first countries to begin planning for the elimination of fossil fuels. The proposed 700-megawatt Karahnukar Hydropower Plant, consisting of nine dams, three reservoirs, seven channels, and 68 miles (110 kilometers) of underground tunnels, is planned to supply electricity for large-scale aluminum smelting. Environmentalists have strongly opposed the project, citing the potential environmental damage caused by massive redirection water flow from rivers and tributaries.

Iceland is a land of active volcanoes and geysers; earthquakes occur on a daily basis.

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With a per capita income of $34,600, Iceland is the 11th richest nation in the world. The most significant resource is the fish that produces 70 percent of all export earnings. Other resources include hydropower, geothermal power, and diatomite. Approximately 10 percent of the workforce is involved in agriculture, including the 8 percent involved in fishing. Over 90 percent of the population of Iceland live in urban areas. With 561 cars per 1,000 people, Iceland produces 7.7 carbon dioxide emissions (metric tons) per capita. The government has protected 9.8 percent of the land in Iceland. As a result, none of the 93 bird species endemic to Iceland are endangered, but six of the 11 endemic mammal species are threatened with extinction.

Environmentally, Iceland suffers from water pollution caused by fertilizer runoff and inadequate wastewater treatment. A 2006 study by Yale University ranked Iceland 13th among 132 nations in overall environmental performance, slightly higher than average among countries in the same income and geographic groups. The Icelandic government has pressured the owners of power plants and aluminum smelters to employ the most environmentally friendly technology in order to reduce toxic emissions and has enacted fines to force polluters to pay for cleanup.

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