Strætó CEO Defends Controversial Subsidy Policy for Clean Energy Buses

2026-02-28 - 15:05

The CEO of Strætó, the transport service provider for the Reykjavik and the capital region, has defended the company’s requirement that contractors pass on a significant portion of government subsidies for “clean energy buses.” According to Morgunblaðið, Strætó has already received 72 million krónur from contractors involved in public transport services. What's This Story? Strætó CEO defends the policy requiring contractors to return 75% of clean energy bus subsidies. The company has received 72 million krónur from contractors. The CEO insists the practice is legal and follows tender terms. Photo: Golli. A man waits for the bus in Reykjavík The company set a clear condition in its tender agreements: contractors who received subsidies from the Climate and Energy Fund for purchasing environmentally friendly buses must give 75% of these funds to Strætó. The move has raised concerns, with critics questioning whether it is ethical for Strætó to take such a substantial share of the funds intended for sustainable vehicles. However, the CEO remains steadfast in his stance, arguing that there is no legal issue with the arrangement. This development comes as the country continues to push for greener transport solutions in line with climate goals. Strætó’s decision, while controversial, highlights the ongoing debate over how public subsidies should be allocated in the transition to more sustainable energy practices.