Where can I find unspoilt parts of Iceland: free from sheep and with natural vegetation?
Since humans arrived to Iceland, 96% of forests have been cut down and the vegetated part has reduced from 60% to less than 25%, due to severe erosion caused by sheep overgrazing. The Soil conservation service of Iceland has some projects aimed at revegetation.
In autumn 2015, I hiked in eastern Iceland (Lónsoræfi area) and was somewhat dismayed by the impact of sheep even in remote and steep valleys in a nature reserve. In spring 2016, I visited Rùm, Scotland, an island now sheep-free, and noticed the dramatic difference in vegetation compared with the parts of sheep-infested mainland Scotland I had experienced before.
Where may I find parts of Iceland where sheep are banished and where natural vegetation is given a chance to recover¹?
¹Not counting ice caps and glaciers and their immediate vicinity which are naturally free from vegetation.
Best Answer
Based on limited personal experience. I haven't seen all Iceland myself, but from what I've seen it doesn't look like there is anything left what one could reasonably consider a forest. At least not by European/American standards.
When being on several guide tours I also heard there are a couple of very small forests coming from reforestry projects. Those forests are indeed all fenced to protect from sheep grazing, but those are relatively new and therefore small.
As a side note, there is more sheep than people in Iceland (according to my tour guide), and people had much bigger impact to the natural vegetation (according to the same source).
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Answer 2
You'll find several small forests in Iceland, Hallormsstadaskogur in the East. Vaglaskogur in the North and Baejarstadaskogur in the South. More importantly there are several very large nature reserves where grazing is limited.
Take a look at Nordic Adventure Travel.
Skaftafell is quite well known.
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