Sustainable Travel · Northern Europe
15 Best Destinations for Eco-Friendly Hotels in Iceland (2025 Guide)
Updated 2026-05-04 · 15 destinations · Carbon-neutral booking via IMPT
Iceland is one of the most naturally extraordinary countries on Earth — and one of the most sustainably minded. Powered by nearly 100% renewable geothermal and hydroelectric energy, Iceland has built its economy around protecting the very landscapes that draw visitors: volcanic highlands, glacial lagoons, roaring waterfalls, and skies alive with the Northern Lights. The country's fishing communities, farm-to-table food culture, and deep respect for the land make it a genuine leader in low-impact travel. But choosing where to stay matters just as much as what you do when you arrive. Eco-conscious travellers want accommodation that aligns with their values — without paying a premium for the privilege. That's where IMPT Hotels comes in: every booking made through IMPT retires 1 tonne of UN-verified CO₂ on-chain, paid entirely from IMPT's commission, not yours. With 8M properties across 195 countries and the same nightly rates as Booking.com, sustainable travel has never been more accessible. These 15 destinations are the best base for an eco-conscious stay in Iceland.
No. 1
Reykjavik — Europe's greenest capital city
Reykjavik is the world's northernmost capital and a global benchmark for urban sustainability. The city runs almost entirely on geothermal energy, heats its pavements in winter with geothermal hot water, and has invested heavily in cycling infrastructure and electric public transport. Eco-travellers will love exploring the colourful old harbour district, visiting the iconic Hallgrímskirkja church on foot, and diving into the local food scene — which champions Icelandic lamb, skyr, and sustainably caught Arctic fish. Day trips to the Golden Circle, including Þingvellir National Park (a UNESCO World Heritage Site), Geysir, and Gullfoss waterfall, are all low-impact and spectacular. The Reykjanes Peninsula's Blue Lagoon geothermal area is also within easy reach. Reykjavik's compact, walkable centre means a car is rarely needed. IMPT Hotels has live availability for eco-friendly properties across Reykjavik — search now at app.impt.io/find-hotel-input and retire a tonne of CO₂ with your booking.
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No. 2
Akureyri — the green capital of the north
Dubbed the 'Capital of the North', Akureyri sits at the head of Eyjafjörður, Iceland's longest fjord, and is a brilliant base for eco-travellers exploring northern Iceland. The town is famously charming — its botanical garden, one of the world's most northerly, blooms surprisingly lush in summer. From Akureyri, visitors can access the stunning Tröllaskagi Peninsula, go whale watching on Eyjafjörður (one of Iceland's most reliable whale habitats), and hike trails through dramatic mountain scenery. The local food culture champions fresh fish landed daily from the fjord, as well as regional dairy and lamb. The town itself is compact and walkable, with a strong local arts scene and low-impact winter activities like cross-country skiing. Akureyri is also a gateway to Mývatn and the wider Diamond Circle. IMPT Hotels lists sustainable accommodation options throughout Akureyri — check live availability at app.impt.io/find-hotel-input.
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No. 3
Vik — black sands and dramatic coastal wilderness
Vik í Mýrdal is Iceland's southernmost village and one of its most visually arresting. Framed by the black sand beach of Reynisfjara — famous for its towering basalt columns and powerful Atlantic surf — and the brooding Katla volcano, Vik is a destination that reminds travellers how wild and fragile Iceland's natural environment truly is. The village is small and community-focused, with local guesthouses and farm stays offering an authentic, low-footprint experience. Hikers can explore the trails above the village for panoramic coastal views, while birdwatchers will delight in the puffin colonies nesting at Reynisdrangar sea stacks in summer. Vik also sits conveniently between the Golden Circle and the Vatnajökull region, making it an ideal stop on any slow-travel south-coast itinerary. Staying locally keeps tourist spending in the community. IMPT Hotels has live availability for properties in and around Vik — book sustainably at app.impt.io/find-hotel-input.
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No. 4
Höfn — gateway to glacier country
Höfn (pronounced 'hup') is a small fishing town in southeast Iceland, sitting right on the edge of Vatnajökull National Park — Europe's largest national park by area. This is glacier country: Vatnajökull ice cap, Jökulsárlón glacial lagoon, and the photogenic Diamond Beach (where icebergs wash ashore) are all accessible from here. Eco-travellers come for glacier hikes and ice cave tours that operate with responsible, small-group guiding principles. Höfn is also celebrated for its langoustine (Icelandic lobster), and the town's commitment to its fishing heritage makes for an authentic, slow-travel experience far removed from the crowds of Reykjavik. The surrounding wetlands are rich in birdlife, including Arctic terns and various wading species. With so much raw, protected wilderness on the doorstep, Höfn is one of the most naturally immersive bases in all of Iceland. Find eco-conscious accommodation in Höfn through IMPT Hotels at app.impt.io/find-hotel-input.
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No. 5
Selfoss — sustainable south Iceland hub
Selfoss is the largest town in south Iceland and a practical, well-connected base for exploring some of the country's most celebrated natural wonders. The nearby Þórsmörk nature reserve, Landmannalaugar highland rhyolite mountains, and the classic Golden Circle route are all accessible from here. The town sits beside the Ölfusá River — Iceland's largest river by volume — and the surrounding region is strong in geothermal agriculture, with greenhouse-grown local produce widely available. Selfoss itself has a growing café and artisan food culture that leans into local sourcing. For walkers and cyclists, the flat Ölfusá riverbanks offer easy green-season exploration. The town's central location means travellers can reach Þingvellir, Geysir, and Gullfoss without long drives, reducing overall transport emissions during a stay. Selfoss is also a sensible overnight stop for travellers doing a slow Ring Road journey. Browse IMPT Hotels' live listings for Selfoss at app.impt.io/find-hotel-input.
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No. 6
Húsavík — Iceland's whale watching capital
Húsavík is widely regarded as the whale watching capital of Europe, and for eco-travellers, it represents one of the most extraordinary wildlife experiences on the continent. Situated on Skjálfandi Bay in north Iceland, the town has built its economy around respectful, small-boat whale watching tours that regularly encounter humpbacks, minke whales, and even blue whales in season. Several operators use electric or hybrid vessels, minimising disruption to marine life. Beyond the water, Húsavík is a key stop on the Diamond Circle and sits close to Ásbyrgi canyon, the horseshoe-shaped geological marvel that features in Norse mythology. The town's charming wooden church is one of Iceland's most photographed. Local restaurants focus on sustainable seafood and regional produce. Húsavík is also a gateway to Jökulsárgljúfur canyon within Vatnajökull National Park. IMPT Hotels shows live sustainable accommodation options in Húsavík — search at app.impt.io/find-hotel-input.
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No. 7
Egilsstaðir — east Iceland's wild frontier
Egilsstaðir is the regional hub of east Iceland — a quiet, unhurried town on the banks of the Lagarfljót river (home to Iceland's own mythical lake serpent, the Lagarfljótsormur). This is one of Iceland's least-visited regions, making it ideal for travellers seeking true wilderness without the crowds. The surrounding Eastfjords are breathtaking: steep mountains plunge into narrow fjords, reindeer roam the highlands, and seabird colonies thrive on remote clifftops. Egilsstaðir's Hallormsstaðarskógur forest — Iceland's largest — offers accessible hiking trails through birch woodland. Local culture here revolves around fishing, farming, and a quiet, authentic Icelandic way of life. The town makes a natural midpoint on a slow Ring Road journey and connects travellers to the extraordinary highland interior via F-roads in summer. IMPT Hotels carries live availability for accommodation in and around Egilsstaðir — explore options at app.impt.io/find-hotel-input.
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No. 8
Borgarnes — saga country on the western fjords
Borgarnes is a small town on the Borgarfjörður estuary in west Iceland, steeped in Viking history and surrounded by outstanding natural scenery. The town's Settlement Centre offers an immersive, well-regarded cultural experience exploring Iceland's Norse heritage — a meaningful, low-impact attraction that adds depth to any visit. Beyond the town, the Snæfellsnes Peninsula (one of Iceland's most celebrated routes) is within reach, as is the dramatic Deildartunguhver hot spring — Europe's most powerful geothermal spring. The Borgarfjörður region is also home to waterfalls, lava fields, and salmon rivers. Local producers in the area are known for quality dairy and geothermally grown vegetables. Borgarnes itself is compact and easy to navigate on foot. Its position just 75 km north of Reykjavik makes it an excellent first or last night for travellers who want to ease into Iceland at a slower pace. Check IMPT Hotels for live stays in Borgarnes at app.impt.io/find-hotel-input.
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No. 9
Ísafjörður — wild Westfjords without the crowds
Ísafjörður is the largest town in the Westfjords — Iceland's most remote and arguably most spectacular region. Surrounded on nearly all sides by steep fjord walls and Arctic silence, Ísafjörður is a destination for travellers who take their wilderness seriously. The nearby Hornstrandir Nature Reserve is one of Europe's last true wildernesses, accessible only by boat and on foot, and home to one of Iceland's largest Arctic fox populations. Sea kayaking, ski touring, and guided hiking are among the most popular low-impact activities. The town itself has a beautifully preserved old town quarter, excellent locally caught seafood, and a tight-knit community with genuine Icelandic character. Because the Westfjords receive a fraction of Iceland's overall visitors, staying here actively supports a region that needs and deserves responsible tourism. IMPT Hotels lists accommodation options in Ísafjörður — browse live availability at app.impt.io/find-hotel-input.
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No. 10
Stykkishólmur — slow travel on Snæfellsnes
Stykkishólmur is a picturesque harbour town on the north shore of the Snæfellsnes Peninsula, and one of Iceland's most charming slow-travel destinations. The town's colourful houses, volcanic islands dotted across Breiðafjörður Bay, and the distinctive Súgandisey lighthouse island make it deeply photogenic. From Stykkishólmur, travellers can take the Baldur ferry across to the Westfjords — one of Iceland's most scenic sea crossings. The Snæfellsjökull National Park, dominated by its glacier-topped stratovolcano immortalised by Jules Verne, is accessible along the peninsula. Guided sea angling, kayaking among the bay's 2,700+ islands, and birdwatching are all popular, low-impact ways to spend time here. Local restaurants and guesthouses champion fresh fish and Icelandic hospitality. Stykkishólmur is ideal for travellers wanting to step off the Ring Road and into something quieter and more genuine. Find accommodation via IMPT Hotels at app.impt.io/find-hotel-input.
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No. 11
Hella — highland access and rural calm
Hella is a small service town in the South Highlands, sitting between Selfoss and Hvolsvöllur on the Ring Road, and it serves as a brilliant low-key base for eco-travellers with highland ambitions. The highland road to Landmannalaugar — famous for its multicoloured rhyolite mountains and natural hot springs — departs from near here, offering one of Iceland's most dramatic backcountry experiences. The Þórsmörk nature reserve, a lush glacial valley used as the starting or finishing point for the famous Laugavegur hiking trail, is also accessed from this area. Hella itself has a distinctly rural, unhurried character, with local farms, the Rangá rivers (celebrated for salmon fishing), and wide-open views of Hekla volcano — one of Iceland's most active. Staying in Hella means tourism spend goes directly into small local businesses. Browse IMPT Hotels' live listings for Hella and the surrounding area at app.impt.io/find-hotel-input.
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No. 12
Hveragerði — geothermal village in the Golden Circle
Hveragerði sits just 45 km east of Reykjavik in the Golden Circle corridor and is one of Iceland's most geothermally active inhabited areas — steam literally rises from cracks in the ground throughout the town. Known as the 'Hot Spring Town', Hveragerði has built its identity around geothermal energy and greenhouse horticulture, producing tomatoes, cucumbers, and flowers year-round using entirely natural heat. The town is the trailhead for the famous Reykjadalur ('Steam Valley') hiking trail, which leads to a natural hot river where bathing is free and freely available. It's an accessible, low-cost, low-impact experience that perfectly embodies Iceland's geothermal relationship with the land. Hveragerði also has a strong wellness culture rooted in hot spring bathing and local nature. The surrounding area is rich in birdlife and short hiking routes. IMPT Hotels has live accommodation options for Hveragerði — book your stay at app.impt.io/find-hotel-input.
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No. 13
Mývatn — volcanic wonderland of the north
Lake Mývatn and its surrounding area represent one of Iceland's most geologically diverse and ecologically significant landscapes — a UNESCO-recognised zone of volcanic craters, lava fields, geothermal mud pools, and wetlands teeming with birdlife. The lake itself hosts more species of duck than almost anywhere else on Earth, making it a paradise for birdwatchers. The Námaskarð geothermal area, Dimmuborgir lava formations, the Krafla volcano caldera, and the Grjótagjá lava cave hot spring are all clustered in this remarkable region. The Mývatn Nature Baths offer a quieter, more locally owned alternative to the Blue Lagoon. The entire area rewards slow, on-foot exploration, and responsible visitor practices are actively promoted. Mývatn is a key stop on the Diamond Circle and is best experienced without rushing. IMPT Hotels carries live availability for accommodation in and around the Mývatn region — search at app.impt.io/find-hotel-input.
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No. 14
Kirkjubæjarklaustur — lava fields and highland solitude
Kirkjubæjarklaustur — affectionately shortened to 'Klaustur' by locals — is a tiny village in south Iceland set amid one of the country's most dramatic volcanic landscapes. The Eldhraun lava field, formed during the catastrophic 1783 Laki eruption, stretches for miles around the village — a moss-carpeted lava expanse that is one of the largest in the world. Nearby Fjaðrárgljúfur canyon, a stunningly sculpted river gorge, has become one of Iceland's most beloved hidden gems. The Lakagígar crater row, accessible by 4WD in summer, offers an extraordinary and rarely crowded highland experience. Klaustur sits between Vik and Höfn on the Ring Road and is an ideal overnight stop for travellers doing the south coast slowly. The village has a strong sense of local identity and is genuinely unspoiled by mass tourism. Browse eco-friendly accommodation options in Kirkjubæjarklaustur through IMPT Hotels at app.impt.io/find-hotel-input.
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No. 15
Grundarfjörður — Snæfellsnes' most dramatic fjord town
Grundarfjörður sits on the north coast of the Snæfellsnes Peninsula and offers what many consider the most photographed view in Iceland: Kirkjufell mountain, the 'Church Mountain', rising sharply from the fjord shore with waterfalls cascading beside it. The town is small and unpretentious, with a fishing heritage that remains central to daily life. Orca and humpback whales are frequently spotted in the fjord during winter months, making responsible whale watching a genuine possibility in the off-season. The Snæfellsjökull National Park is easily reached along the peninsula, offering glacier walks, coastal trails, and lava tube exploration. Because Grundarfjörður receives fewer visitors than the more accessible parts of the peninsula, staying here means supporting a community that genuinely benefits from considerate eco-tourism. It's the kind of destination where slow travel makes the most sense. Check IMPT Hotels for live availability in Grundarfjörður at app.impt.io/find-hotel-input.
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How the carbon offset works: 1 tonne of UN-verified CO₂ retired on-chain per booking — about 28× the average per-night hotel footprint. IMPT funds this from its commission, so guests pay the standard nightly rate. Every Iceland hotel bookable via IMPT carries this offset automatically.
Frequently asked questions
Are there carbon-neutral hotels in Iceland?
Iceland's energy infrastructure is already one of the cleanest in the world, but the carbon footprint of your accommodation stay — including supply chains, food, laundry, and guest services — still adds up. When you book through IMPT Hotels at app.impt.io/find-hotel-input, every completed stay automatically retires 1 tonne of UN-verified CO₂ on-chain. This carbon retirement is paid entirely from IMPT's own commission — not added to your bill. The retired carbon is verifiable on the blockchain, meaning it's transparent and permanent. One tonne of CO₂ is roughly equivalent to the full carbon footprint of a typical hotel room stay, including associated emissions. This makes IMPT one of the most meaningful ways to offset the environmental impact of your Icelandic trip, without paying a premium or changing your booking habits. Iceland's accommodation sector is increasingly sustainability-focused, and IMPT's carbon mechanic adds an additional verified layer on top of whatever green practices individual properties already follow.
What is the cheapest time to visit Iceland for eco-travel?
The shoulder seasons — May to early June and September to October — offer the best balance of lower prices, manageable visitor numbers, and outstanding natural experiences. Late May and June bring the midnight sun and the first wildflowers, while September and October offer dramatic autumn light, early Northern Lights opportunities, and the end of the puffin season. Winter (November to February) sees the lowest accommodation prices and the best Aurora Borealis conditions, though some highland areas and F-roads are inaccessible. Peak summer (July to August) is the most expensive and most crowded period. Whatever time of year you visit, IMPT Hotels offers the same nightly rates as Booking.com — there is no green premium for booking sustainably. Combined with the €5 sign-up credit and 5% back on your first stay, IMPT is also the most rewarding way to book.
How do I book a sustainable hotel in Iceland?
Head to app.impt.io/find-hotel-input, search your chosen Icelandic destination, and book as you normally would. IMPT Hotels offers 8M properties across 195 countries at the same nightly rates as Booking.com — no green premium, ever. When you complete your stay, IMPT retires 1 tonne of UN-verified CO₂ on-chain from its own commission. As a new user, you receive €5 free in your IMPT wallet on signup, plus 5% back on every stay: 3% goes to a carbon cause of your choice, and 2% comes back as credit toward your next booking. Most stays include free cancellation up to 48 hours before check-in. Sustainable travel has never been simpler or more rewarding.
What sustainable activities are popular in Iceland?
Iceland is an eco-traveller's playground. Hiking is the signature activity — trails like the Laugavegur (connecting Landmannalaugar to Þórsmörk) and routes within Vatnajökull National Park offer world-class wilderness walking with minimal environmental impact when done responsibly. Whale watching in Húsavík and Akureyri, particularly on hybrid or electric vessels, is among Europe's finest wildlife experiences. Glacier hikes on Vatnajökull or Snæfellsjökull — conducted with certified, small-group guides — offer a visceral reminder of what climate change puts at risk. Geothermal bathing in natural rivers like Reykjadalur near Hveragerði is free, low-impact, and deeply Icelandic. Birdwatching at Lake Mývatn or on the Westfjords' sea cliffs rewards patient, quiet visitors. Finally, visiting geothermal greenhouses and farm-to-table producers in the south supports Iceland's sustainable food economy. All of these activities reinforce a travel ethos that takes from the landscape as little as possible.
Is Iceland a good destination for eco-conscious travellers?
Iceland is genuinely one of the world's leading eco-travel destinations. Close to 100% of Iceland's electricity and heating comes from renewable geothermal and hydroelectric sources, making it one of the cleanest energy grids on Earth. The country has an extensive network of national parks and nature reserves — including Vatnajökull, Europe's largest national park — with strong legal protections for fragile ecosystems. Iceland's food culture leans heavily on sustainable fishing, free-range sheep farming, and geothermally grown produce. Low population density means vast areas of wilderness remain genuinely wild. The government and tourism industry are increasingly focused on responsible visitor management, trail maintenance, and off-season travel promotion to reduce over-tourism pressure. For travellers who care about where their money goes and what their trip costs the planet, Iceland paired with a platform like IMPT Hotels makes for one of the most conscientious travel combinations available.
Iceland is a destination that demands respect — and rewards it with some of the most extraordinary landscapes, wildlife, and cultural experiences on the planet. Whether you're chasing Northern Lights above a remote Westfjords fjord, hiking across a lava field in the south, or watching humpback whales breach in Skjálfandi Bay, the choices you make about where to stay directly shape the kind of tourism Iceland gets. Booking through IMPT Hotels means every stay automatically retires 1 tonne of UN-verified CO₂ on-chain — paid from IMPT's commission, not yours — at the exact same nightly rate you'd pay anywhere else. Add a €5 sign-up credit, 5% back on every booking, and free cancellation on most stays, and there's simply no reason to book your Iceland accommodation anywhere else. Start planning your eco-conscious Icelandic adventure today at app.impt.io/find-hotel-input.