What trees grow in Iceland?

Despite being located close to the Arctic Circle, with a climate moderated by the North Atlantic Ocean, only two species of native trees are found in Iceland: the Betula pubescens (commonly called the downy or dwarf birch) and the Sorbus aucuparia (the rowan or mountain-ash). Historically, only around 1% of the country was covered by birch woodland. Deforestation began in the settlement of Iceland in the 9th century, partly for construction of farms and ships and partly due to overgrazing by livestock. Birch woods were mainly found in sheltered valleys and hillsides in the south, as well as in more extensive woodland in the southeast, north and east.

Since the turn of the 20th century reforestation efforts have been made, and forests now cover about 2% of the country, of which two thirds are birch. Coniferous trees have also been planted on a large scale, mainly the sitka spruce (Picea sitchensis), lodgepole pine (Pinus contorta) and the European larch (Larix decidua). This has been mostly done in lowland areas below 450 metres, where the climate is warm enough for these species to grow. As of 2016, conifers cover more of Iceland than birch, 39.5% compared to 29.5%.

While trees of almost every species can grow in some parts of Iceland, none are commercially viable because of the small size and poor quality of the resultant timber, coupled with the high cost of transporting usable wood to market.