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0:00:07 > 0:00:11- Every island - transports you to another world.
0:00:16 > 0:00:20- Where the nature of life - has evolved in its own unique way.
0:00:23 > 0:00:27- But due to the pressures of the - modern world, the tide is turning.
0:00:28 > 0:00:31- For better and for worse.
0:00:35 > 0:00:40- In this series, we meet islanders - all over the world.
0:00:42 > 0:00:45- People who are proud - of their history...
0:00:45 > 0:00:49- ..who preserve their customs...
0:00:49 > 0:00:52- ..and who are patriotic.
0:00:52 > 0:00:55- SHE SPEAKS ICELANDIC
0:00:56 > 0:00:59- But the globalization - of the world...
0:00:59 > 0:01:03- ..has made it impossible - for islanders to stand alone.
0:01:03 > 0:01:08- In many ways, these shores - are leading the battle...
0:01:08 > 0:01:11- ..to save the planet.
0:01:12 > 0:01:16- The island's fate - is critical to us all.
0:01:38 > 0:01:42- In the middle of the North Atlantic, - on the edge of the Arctic Circle...
0:01:42 > 0:01:46- ..is an island - that could erupt at any moment.
0:01:50 > 0:01:54- Iceland is one of the most - volatile places on earth.
0:01:56 > 0:02:00- It has been created from the lava - of volcanic eruptions...
0:02:00 > 0:02:02- ..since time immemorial.
0:02:03 > 0:02:08- The volcanoes are still erupting - and the island still forming.
0:02:09 > 0:02:15- I've come to raise the curtain - on this magical island...
0:02:15 > 0:02:18- ..and to try to understand - its inhabitants...
0:02:18 > 0:02:21- ..who have survived - Mother Nature's onslaught.
0:02:28 > 0:02:31- It's a large country - with a tiny population.
0:02:31 > 0:02:34- Living here - is a challenge in itself.
0:02:36 > 0:02:41- But islanders today are facing - greater risks than volcanoes.
0:02:43 > 0:02:45- The wilderness is changing.
0:02:45 > 0:02:48- Glaciers are disappearing...
0:02:51 > 0:02:56- ..as is the solitude that has - protected Icelanders for centuries.
0:02:57 > 0:03:01- This is the birthplace - of the very first novel.
0:03:02 > 0:03:06- But the island's story - is currently being rewritten.
0:03:08 > 0:03:11- Iceland is at a major crossroads.
0:03:14 > 0:03:17- Tension exists - between the old and the new.
0:03:20 > 0:03:23- Important decisions have to be made.
0:03:23 > 0:03:26- # Oh, my God, I'm losing it...
0:03:26 > 0:03:29- To preserve the wilderness - or to industrialize it?
0:03:30 > 0:03:32- # No, I can hardly breathe...
0:03:32 > 0:03:34- To protect nature...
0:03:36 > 0:03:38- ..or to kill it?
0:03:38 > 0:03:41- # I feel my heart suddenly alive #
0:03:41 > 0:03:44- To communicate - with the outside world...
0:03:45 > 0:03:48- ..or to safeguard - the purity of its culture?
0:03:55 > 0:04:00- One of the first things - that strikes you about Iceland...
0:04:00 > 0:04:02- ..is its remoteness.
0:04:08 > 0:04:12- In terms of size, - the island is larger than England...
0:04:13 > 0:04:17- ..but fewer people live here - than in Cardiff.
0:04:27 > 0:04:30- Another striking feature...
0:04:30 > 0:04:32- ..is the island's wild character.
0:04:36 > 0:04:40- Iceland is one of the most - volcanic places on the planet.
0:04:41 > 0:04:46- The magma - the molten rock within - the earth's mantle - is scorching.
0:04:47 > 0:04:53- Iceland lies on the world's - most unstable geological fault...
0:04:53 > 0:04:55- ..the Mid-Atlantic Ridge.
0:04:57 > 0:05:01- It's a tectonic boundary - that splits Iceland in two.
0:05:05 > 0:05:09- As the plates separate, - magma rises from the ground.
0:05:19 > 0:05:23- There are over 100 volcanoes - on the island today...
0:05:24 > 0:05:28- ..and more geothermal energy - than any other country.
0:05:31 > 0:05:34- Due to its remote location...
0:05:34 > 0:05:38- ..Iceland's wild elements - are often forgotten...
0:05:39 > 0:05:43- ..until Mother Nature reminds - everybody of her innate power.
0:05:52 > 0:05:54- In April 2010...
0:05:55 > 0:05:58- ..the volcano - Eyjafjallajokull erupted...
0:05:58 > 0:06:01- ..bringing Europe to a standstill.
0:06:04 > 0:06:08- Because the volcanic ash - posed a danger to aircraft...
0:06:08 > 0:06:12- ..thousands of flights - were cancelled.
0:06:12 > 0:06:17- It cost the international economy - hundreds of millions of pounds.
0:06:17 > 0:06:21- This waterfall cascades - from the volcano...
0:06:21 > 0:06:23- ..that caused all the problems.
0:06:23 > 0:06:26- It's a thrill for me - to see such a wonder...
0:06:27 > 0:06:31- ..but Icelanders - live with these wonders every day...
0:06:31 > 0:06:35- ..with volcanic earth - literally shifting under their feet.
0:06:38 > 0:06:42- Haraldur Sigurdsson - is an expert in volcanology.
0:06:42 > 0:06:46- He lives in one of the world's - most volcanic countries.
0:06:46 > 0:06:48- HE SPEAKS ICELANDIC
0:06:49 > 0:06:52- People have lived in Iceland - for more than 1,000 years.
0:06:53 > 0:06:57- They've lived in the shadow of the - volcanoes and felt their effects.
0:06:57 > 0:07:00- Eruptions are everyday occurrences.
0:07:05 > 0:07:07- But this eruption was exceptional.
0:07:10 > 0:07:14- It wasn't the scale of the eruption - that was the problem...
0:07:14 > 0:07:16- ..but the nature of the ash.
0:07:17 > 0:07:22- A thick layer of ash covers - the base of the volcano...
0:07:22 > 0:07:25- ..that's so difficult to pronounce.
0:07:25 > 0:07:27- Eyjafjallajokull.
0:07:30 > 0:07:34- Gas from the magma combined - with steam from the glaciers...
0:07:34 > 0:07:38- ..to form incredibly fine - volcanic ash.
0:07:39 > 0:07:43- This ash is so fine. - It's almost like flour.
0:07:43 > 0:07:48- It was easily carried by the wind - to countries all over the world...
0:07:48 > 0:07:52- ..and brought airports - to a standstill.
0:07:58 > 0:08:00- The ash descended - onto the entire island.
0:08:02 > 0:08:04- It's underfoot everywhere.
0:08:05 > 0:08:07- If you look around...
0:08:07 > 0:08:10- ..you'll notice - that the fields are empty.
0:08:11 > 0:08:15- Livestock had to be moved - because the ash was poisonous.
0:08:17 > 0:08:20- But the effects - of Eyjafjallajokull...
0:08:20 > 0:08:25- ..are nothing compared to what - happened here some 200 years ago.
0:08:34 > 0:08:37- These are the lava fields - of Eldhraun.
0:08:38 > 0:08:41- These tumps are the scars - from the molten rock...
0:08:42 > 0:08:46- ..that flowed in a red-hot river - from Lakagigar...
0:08:46 > 0:08:49- ..a tectonic fault - that erupted in 1783.
0:08:54 > 0:08:58- For eight months, - Iceland was engulfed...
0:08:58 > 0:09:01- ..by three million cubic metres - of lava.
0:09:02 > 0:09:06- A quarter of the island's - inhabitants were killed.
0:09:07 > 0:09:12- The ash reached far and wide, - plunging the planet into darkness...
0:09:13 > 0:09:16- ..and killing six million people - around the world.
0:09:20 > 0:09:25- Icelanders live with the constant - threat of fatal eruptions.
0:09:27 > 0:09:32- But they have a better understanding - of how to protect themselves.
0:09:34 > 0:09:38- All the island's volcanic movements - are monitored.
0:09:38 > 0:09:41- If anything unusual appears...
0:09:41 > 0:09:45- ..residents are quickly evacuated - to a safe haven.
0:09:49 > 0:09:53- No-one was killed - when Eyjafjallajokull erupted.
0:09:53 > 0:09:58- But there is a different kind - of threat on the horizon...
0:09:59 > 0:10:04- ..one that threatens to change - the way of life of every islander.
0:10:07 > 0:10:07- .
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0:10:20 > 0:10:24- Because Iceland's interior - is so barren and remote...
0:10:25 > 0:10:29- ..almost all the inhabitants - have settled on the coastline.
0:10:32 > 0:10:35- The vast majority live in Reykjavik.
0:10:36 > 0:10:39- As the world's most northerly - capital city...
0:10:40 > 0:10:44- ..Reykjavik only gets four hours - of daylight in winter.
0:10:44 > 0:10:48- But in summer, it's light - almost around the clock.
0:10:49 > 0:10:53- Reykjavik harbour - is the city's cornerstone...
0:10:54 > 0:10:58- ..and the landing point for - Iceland's most valuable resource.
0:10:59 > 0:11:04- It's difficult to grow crops - in the barren volcanic soil...
0:11:04 > 0:11:07- ..but there is a rich harvest - in the sea.
0:11:07 > 0:11:10- These waters are teeming with fish.
0:11:10 > 0:11:14- It's these fish that have always - sustained the Icelanders.
0:11:21 > 0:11:26- These days, only 1% of the island - is farmed to cultivate crops.
0:11:30 > 0:11:36- Fishing is Iceland's main export - and the backbone of its economy.
0:11:37 > 0:11:42- But in recent years, Iceland - followed a very different course.
0:11:45 > 0:11:48- It was a profitable - yet dangerous course...
0:11:50 > 0:11:55- ..that shattered Iceland's economy - and had global consequences.
0:12:01 > 0:12:04- Christian Davidsson - knows only too well...
0:12:04 > 0:12:09- ..how close the people of Iceland - came to losing everything.
0:12:10 > 0:12:15- He offered to tell me all about it - in exchange for a day by the lake.
0:12:15 > 0:12:19- What do you call that in Icelandic?
0:12:19 > 0:12:20- Fiskur.
0:12:20 > 0:12:23- Fiskur.- - Right, fiskur is fish.
0:12:23 > 0:12:25- Lots of fiskur then.
0:12:25 > 0:12:30- Fishing is more than a hobby - for Christian - it's a way of life.
0:12:34 > 0:12:38- He was first paid to catch fish - when he was 15 years old.
0:12:38 > 0:12:41- He comes from a family of fishermen.
0:12:42 > 0:12:45- His father - was also a seaman for 30 years.
0:12:52 > 0:12:54- Was that better?
0:12:55 > 0:12:58- I have to do this. - I feel like a real angler now.
0:13:01 > 0:13:03- HE SPEAKS ICELANDIC
0:13:05 > 0:13:10- By becoming a fisherman, - Christian chose an uncertain career.
0:13:11 > 0:13:15- Although the sea surrounding Iceland - is fertile...
0:13:15 > 0:13:18- ..it's also wild.
0:13:22 > 0:13:26- Storms and ferocious waves - can develop in an instant.
0:13:33 > 0:13:37- Over the centuries, sailors - have learned to respect the sea...
0:13:37 > 0:13:41- ..and pray for God's help - in guiding them.
0:13:46 > 0:13:48- MAN PRAYS IN ICELANDIC
0:14:01 > 0:14:04- The coast is dotted with churches.
0:14:05 > 0:14:11- It was a sailor's last port of call - to pray before weighing anchor.
0:14:15 > 0:14:17- MAN PRAYS IN ICELANDIC
0:14:19 > 0:14:24- But even the most solemn prayer - couldn't ensure a safe voyage.
0:14:24 > 0:14:26- The numerous sailors' graves...
0:14:27 > 0:14:31- ..bear witness - to the sea's merciless power.
0:14:37 > 0:14:42- As the Icelandic saying goes, - the sea gives and takes away.
0:14:46 > 0:14:48- Christian was lucky.
0:14:49 > 0:14:51- He made a profit from fishing...
0:14:51 > 0:14:56- ..when Iceland was netting - a million tonnes of fish each year.
0:14:59 > 0:15:04- But by the end of the 1990s, - the situation was about to change.
0:15:06 > 0:15:08- A small group of businessmen...
0:15:08 > 0:15:12- ..took the reins and led Iceland - in a very different direction...
0:15:13 > 0:15:15- ..into the world of high finance.
0:15:17 > 0:15:22- Seeing that there was more profit - in finance than fish...
0:15:22 > 0:15:25- ..Christian put an advertisement - in the paper.
0:15:29 > 0:15:31- "Christian is looking for a job...
0:15:31 > 0:15:36- "..where he will be part of a team - of ten or more workers."
0:15:36 > 0:15:41- He had several offers, but the - most attractive was from the bank.
0:15:41 > 0:15:43- HE SPEAKS ICELANDIC
0:15:44 > 0:15:48- In no time at all, he became - an investor for the fisheries.
0:15:49 > 0:15:51- Like many bankers, - he made his fortune.
0:15:55 > 0:15:57- He holidayed abroad...
0:15:58 > 0:16:03- ..and the size of his wine cellar - in London increased significantly.
0:16:03 > 0:16:08- It wasn't just the business people - who benefited from this new wealth.
0:16:09 > 0:16:11- For the first time - in their history...
0:16:12 > 0:16:14- ..ordinary Icelanders - had money to burn.
0:16:20 > 0:16:25- By borrowing and investing overseas, - Iceland became a rich nation...
0:16:26 > 0:16:27- ..for a while.
0:16:33 > 0:16:38- But in 2008, - the global economy began to falter.
0:16:40 > 0:16:43- Stock markets plummeted.
0:16:43 > 0:16:48- The banks' credit tower vanished, - along with Iceland's wealth.
0:16:49 > 0:16:53- It was as if a cloud of ash - had descended.
0:16:55 > 0:16:58- The country - was up to its eyes in debt.
0:16:58 > 0:17:03- The banks had borrowed - over six times the country's wealth.
0:17:03 > 0:17:05- They went bankrupt overnight.
0:17:10 > 0:17:13- Within a week, everything changed.
0:17:13 > 0:17:16- Christian was out of work.
0:17:17 > 0:17:22- Within six weeks, - unemployment had risen fivefold.
0:17:27 > 0:17:29- Fiery public protests...
0:17:29 > 0:17:34- ..led to the collapse - of the discredited government.
0:17:35 > 0:17:39- People were determined to return - to the old way of life.
0:17:44 > 0:17:49- These days, fish once again - form the backbone of the economy.
0:17:51 > 0:17:55- The fisheries are more important now - than ever before.
0:17:55 > 0:17:58- With a million tonnes of fish - being caught...
0:17:58 > 0:18:02- ..the produce is exported, - providing revenue for the country.
0:18:04 > 0:18:07- For many years to come, - any profit made from fishing...
0:18:08 > 0:18:11- ..will be used - to clear the country's debt.
0:18:11 > 0:18:16- Even banks acknowledge the value - of the old produce.
0:18:16 > 0:18:20- To show you the importance - of fishing to Iceland...
0:18:20 > 0:18:24- ..their coins feature a fish - rather than a figurehead.
0:18:25 > 0:18:30- Christian has also returned - to what he knows best.
0:18:30 > 0:18:35- He has set up a company to advise - the world's fishing industry.
0:18:36 > 0:18:39- But he has a long way to go.
0:18:39 > 0:18:43- The country is in so much debt, - the figures are hard to comprehend.
0:18:43 > 0:18:47- Christian worries - about his children's future.
0:18:52 > 0:18:56- The more the islanders - engage with the outside world...
0:18:56 > 0:18:59- ..the more their lives will change.
0:19:00 > 0:19:05- Some years ago, Iceland was part - of a wealthy global community.
0:19:09 > 0:19:12- The collapse - has thrust them back to the past.
0:19:17 > 0:19:23- But the islanders' ancestors - have survived much worse things...
0:19:23 > 0:19:27- ..and evidence of their tenacity - has been left behind.
0:19:30 > 0:19:30- .
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0:19:47 > 0:19:52- Since the Vikings landed here - more than 1,000 years ago...
0:19:52 > 0:19:55- ..the people of Iceland - have had to scrape a living.
0:19:56 > 0:19:58- Wherever you go in Iceland...
0:19:58 > 0:20:03- ..there is evidence of people - trying to survive in remote places.
0:20:03 > 0:20:07- A family of 18 would have lived - in a farmhouse of this size.
0:20:07 > 0:20:10- They'd fish in the sea - and keep their livestock here.
0:20:16 > 0:20:22- Confined to a spartan existence, - islanders used their imagination...
0:20:22 > 0:20:25- ..and escaped to a world - of magic and legend.
0:20:30 > 0:20:35- Icelanders' literary tradition - is important not just to them...
0:20:35 > 0:20:37- ..but to the whole world.
0:20:40 > 0:20:45- A special museum in Reykjavik - safeguards precious manuscripts.
0:20:46 > 0:20:52- This collection of books - are the first novels ever written.
0:20:53 > 0:20:56- These are the Saga, - which literally means story.
0:20:56 > 0:20:59- They're historical novels...
0:20:59 > 0:21:05- ..written in Norse, that trace - Iceland's native and turbulent past.
0:21:13 > 0:21:16- In the beginning, - the Saga were narrated orally...
0:21:16 > 0:21:19- ..from one generation to the next.
0:21:26 > 0:21:28- During the bleak, cold winters...
0:21:29 > 0:21:33- ..the tales helped islanders - to forget their hardship...
0:21:33 > 0:21:37- ..and reminded them - of their courageous forefathers.
0:21:42 > 0:21:44- In the 12th century...
0:21:45 > 0:21:49- ..parts of the Saga - were transcribed onto vellum.
0:21:51 > 0:21:55- Even to this day, Icelanders - can understand the manuscripts.
0:21:56 > 0:21:58- The remoteness of the island...
0:21:58 > 0:22:02- ..has allowed them to retain - the purity of an ancient language.
0:22:03 > 0:22:06- The Saga's lessons about hardship...
0:22:06 > 0:22:10- ..and good versus evil - are still relevant today...
0:22:10 > 0:22:13- ..and still sell.
0:22:17 > 0:22:22- Icelanders buy more books - and have more authors per capita...
0:22:22 > 0:22:25- ..than any other country - in the world.
0:22:28 > 0:22:30- One of them is Gerdur Kristny.
0:22:33 > 0:22:36- As a novelist, poet - and children's author...
0:22:36 > 0:22:39- ..she is inspired - by the old literature.
0:22:39 > 0:22:41- SHE SPEAKS ICELANDIC
0:22:41 > 0:22:45- The Saga are still relevant - to the Icelanders...
0:22:45 > 0:22:47- ..and are very important.
0:22:50 > 0:22:55- Gerdur uses themes from the Saga - when writing her own books...
0:22:56 > 0:22:59- ..for both children and adults.
0:22:59 > 0:23:01- SHE SPEAKS ICELANDIC
0:23:03 > 0:23:07- The ideology of the battle - between good and evil...
0:23:07 > 0:23:10- ..and how to keep one's dignity - in adversity...
0:23:10 > 0:23:13- ..are still important - to the Icelanders.
0:23:19 > 0:23:23- Of course, Wales also has - its medieval legends.
0:23:24 > 0:23:28- Will our sagas strike a chord - with the young listeners?
0:23:28 > 0:23:30- I have a story...
0:23:30 > 0:23:35- ..about a huge giant - called Bendigeidfran...
0:23:35 > 0:23:39- ..who used his body as a bridge - so that the people of Wales...
0:23:40 > 0:23:43- ..could walk over him to Ireland.
0:23:44 > 0:23:45- GERDDOR SPEAKS ICELANDIC
0:23:46 > 0:23:49- Like the Mabinogion...
0:23:49 > 0:23:52- ..the Saga - are very bloodthirsty stories.
0:23:52 > 0:23:57- But Gerdur tells me - that the children adore them.
0:23:57 > 0:24:01- They love the Saga - and the scary legends.
0:24:02 > 0:24:06- They truly believe - in Iceland's mystical creatures.
0:24:09 > 0:24:12- Goblins who live under rocks.
0:24:14 > 0:24:17- Ghosts that turn to stone - once dawn breaks.
0:24:20 > 0:24:22- SHE SPEAKS ICELANDIC
0:24:23 > 0:24:26- The children's version - of the Saga...
0:24:26 > 0:24:31- ..still includes all the ferocious - and bloodthirsty images.
0:24:32 > 0:24:36- There's a lot of violence - in these old traditional tales.
0:24:36 > 0:24:40- They clearly give children - a lot of pleasure.
0:24:43 > 0:24:47- This love of literature has - sustained Iceland's book industry...
0:24:50 > 0:24:53- ..even during the recession.
0:24:55 > 0:24:58- The government - has also lent a helping hand.
0:25:00 > 0:25:03- Back home, during periods - of financial hardship...
0:25:04 > 0:25:07- ..the first things to suffer - are literature and the arts.
0:25:08 > 0:25:10- But in Iceland, funding increases...
0:25:11 > 0:25:14- ..because they regard literature - as a form of therapy.
0:25:15 > 0:25:18- Gerdur knows this from experience.
0:25:18 > 0:25:22- The writing grant she receives...
0:25:22 > 0:25:25- ..has been extended - from one year to three.
0:25:29 > 0:25:32- She says it's proof - that Icelandic literature...
0:25:32 > 0:25:35- ..is more important now than ever.
0:25:35 > 0:25:39- But in the current climate...
0:25:39 > 0:25:42- ..Icelanders are also expected - to do more.
0:25:45 > 0:25:47- They must show initiative.
0:25:57 > 0:26:00- This island's wilderness - is changing...
0:26:00 > 0:26:03- ..at a rate never seen before...
0:26:04 > 0:26:07- ..and in ways that are - almost impossible to measure.
0:26:15 > 0:26:18- In a country - carved from snow and ice...
0:26:18 > 0:26:22- ..it's easy to notice - the effects of global warming.
0:26:26 > 0:26:32- The glaciers that cover 11% - of Iceland's land mass are melting.
0:26:36 > 0:26:41- Vatnajokull - is Europe's biggest ice cap.
0:26:42 > 0:26:47- It's a sheet of ice - almost a kilometre thick.
0:26:48 > 0:26:52- But the ancient landscape - is disappearing, chunk by chunk.
0:26:56 > 0:26:59- This piece of ice - is over 1,000 years old...
0:27:00 > 0:27:04- ..but the glaciers are melting - at an alarming rate.
0:27:04 > 0:27:07- A century ago, - this lake didn't exist.
0:27:07 > 0:27:12- As you can see, it's expanding - as the ice turns to water.
0:27:16 > 0:27:20- The lagoon is incredibly beautiful.
0:27:23 > 0:27:28- Tourists like me flock to see - the effects of global warming.
0:27:47 > 0:27:50- You're only seeing 10% - of these lumps of ice.
0:27:50 > 0:27:52- The rest is hidden underwater.
0:27:52 > 0:27:54- Their size is incredible.
0:27:58 > 0:28:02- Experts predict - that Iceland's glaciers...
0:28:03 > 0:28:07- ..will have all disappeared - in a few centuries...
0:28:07 > 0:28:09- ..thus transforming the island.
0:28:12 > 0:28:15- The deterioration has already begun.
0:28:16 > 0:28:22- The lagoon is washing away - the island's main coastal road.
0:28:24 > 0:28:27- It's the same story - right across Iceland.
0:28:30 > 0:28:33- As the glaciers thaw...
0:28:33 > 0:28:38- ..meltwater threatens - to make transport impossible.
0:28:45 > 0:28:49- As the glaciers disappear, - the islanders are preparing...
0:28:49 > 0:28:51- ..for a different future...
0:28:52 > 0:28:57- ..a future conditioned - by the demands of the modern world.
0:29:03 > 0:29:09- Many believe that renewable energy - will take Iceland forward.
0:29:10 > 0:29:12- After all, the island is home...
0:29:13 > 0:29:16- ..to some of the world's largest - geothermal fields.
0:29:17 > 0:29:23- Here, the earth's fiery heat - boils beneath the surface...
0:29:23 > 0:29:26- ..and the taste of sulphur - lingers in the mouth.
0:29:27 > 0:29:32- There's no denying the immense force - building beneath the ground.
0:29:32 > 0:29:35- The heat and the smell are awful.
0:29:35 > 0:29:39- But there's a way of harnessing - this destructive energy...
0:29:40 > 0:29:43- ..and turning it - into something beneficial.
0:29:46 > 0:29:49- Icelanders know how to fulfil - its potential.
0:29:51 > 0:29:56- Almost every home - is heated by geothermal energy.
0:30:05 > 0:30:10- But industrial growth - is fed by the rivers.
0:30:10 > 0:30:13- They cascade wildly - from the glaciers.
0:30:16 > 0:30:20- There is huge potential - for hydropower here.
0:30:20 > 0:30:24- Business people the world over - are vying for it.
0:30:30 > 0:30:33- In 2003, - the American company Alcoa...
0:30:33 > 0:30:36- ..chose the remote town - of Reydarfjordur...
0:30:36 > 0:30:40- ..as the location - for its aluminium factory.
0:30:40 > 0:30:43- At 1.5km in length...
0:30:43 > 0:30:48- ..the Fjardaal factory - is the biggest industrial venture...
0:30:48 > 0:30:50- ..in Icelandic history.
0:30:51 > 0:30:53- By heating the aluminium...
0:30:53 > 0:30:57- ..to a temperature - of 950 degrees Celsius...
0:30:57 > 0:31:00- ..the liquid metal - is extracted from the ore.
0:31:00 > 0:31:05- The process requires - a vast amount of energy.
0:31:06 > 0:31:10- Hydropower supplies that energy, - day and night.
0:31:14 > 0:31:18- Alcoa employs 2,000 local people.
0:31:19 > 0:31:24- The factory has replaced fishing - as the main local employer.
0:31:27 > 0:31:32- It produces 940 tonnes of aluminium - every day...
0:31:32 > 0:31:36- ..and is vitally important - to the country's economy.
0:31:36 > 0:31:42- Because Iceland doesn't have - a source of natural aluminium...
0:31:42 > 0:31:46- ..the ore is imported - thousands of miles to Fjardaal.
0:31:46 > 0:31:51- Hydropower in Iceland produces - incredibly cheap electricity...
0:31:53 > 0:31:56- ..and that's what makes - this venture so profitable.
0:32:00 > 0:32:03- But it comes at a cost.
0:32:05 > 0:32:09- Iceland's wilderness - is paying the price.
0:32:12 > 0:32:15- About 50km from the factory...
0:32:15 > 0:32:17- ..deep underground...
0:32:17 > 0:32:19- ..is a hidden power station.
0:32:21 > 0:32:24- It's a labyrinth of tunnels...
0:32:24 > 0:32:29- ..channelling millions of gallons - of water through giant turbines.
0:32:31 > 0:32:35- Every single kilowatt - of energy generated...
0:32:35 > 0:32:38- ..supplies the aluminium factory.
0:32:38 > 0:32:40- It's one thing to build a factory...
0:32:40 > 0:32:44- ..but quite another to build a dam - to power that factory.
0:32:44 > 0:32:46- We're in the bowels - of the mountain.
0:32:47 > 0:32:50- It looks like something - from a James Bond film.
0:32:50 > 0:32:55- Two huge rivers have been redirected - to flow through the pipes...
0:32:55 > 0:32:57- ..and shining machinery.
0:32:57 > 0:33:02- The venture - cost over a billion euros to build.
0:33:04 > 0:33:08- But you have to view the project - from up above...
0:33:08 > 0:33:11- ..to get a real sense - of its magnitude.
0:33:18 > 0:33:22- This is Karahnjukar Dam.
0:33:22 > 0:33:27- The water feeding the power station - collects in a 25km-long reservoir.
0:33:29 > 0:33:33- This is Europe's highest - and most controversial dam.
0:33:36 > 0:33:39- From the moment the government - unveiled its plans...
0:33:40 > 0:33:42- ..there have been angry protests...
0:33:44 > 0:33:48- ..against the drowning of one - of Europe's last wildernesses...
0:33:48 > 0:33:52- ..for the sake of industrialization.
0:33:52 > 0:33:55- Protestors camped at the site...
0:33:56 > 0:34:00- ..and won widespread support - throughout the world.
0:34:01 > 0:34:04- But their protests were in vain.
0:34:04 > 0:34:09- The aluminium factory - has transformed the landscape...
0:34:09 > 0:34:12- ..and the local community's - way of life.
0:34:12 > 0:34:14- It's easy to criticize the fact...
0:34:15 > 0:34:18- ..that a factory has been built - amid such beauty...
0:34:18 > 0:34:22- ..but it does mean that locals - can stay in their communities.
0:34:23 > 0:34:24- It made me think of Wales.
0:34:25 > 0:34:29- If we could attract investment - of over a billion euros...
0:34:29 > 0:34:34- ..to our rural communities, - would we build a similar factory?
0:34:37 > 0:34:41- I'm not sure whether I'd be for - or against it any more.
0:34:46 > 0:34:50- But there are some who believe - that industry isn't the only option.
0:34:51 > 0:34:55- They want to protect - the island's wildlife...
0:34:55 > 0:34:59- ..in order to attract - a different kind of wealth.
0:35:00 > 0:35:00- .
0:35:04 > 0:35:04- 888
0:35:04 > 0:35:06- 888- - 888
0:35:15 > 0:35:19- Iceland is one of the world's - most remote wildernesses.
0:35:27 > 0:35:31- It's one of earth's - least populated countries.
0:35:36 > 0:35:39- Parts of the island - are so remote...
0:35:39 > 0:35:42- ..that they haven't even - been named yet.
0:35:46 > 0:35:50- But the barren landscape - that kept people away for so long...
0:35:50 > 0:35:53- ..is now attracting them.
0:35:56 > 0:36:00- They are being enchanted - by the island's beauty...
0:36:00 > 0:36:03- ..and its strange creatures.
0:36:08 > 0:36:13- The north-eastern town of Husavik - is a popular tourist destination.
0:36:15 > 0:36:18- It was one of the first places...
0:36:18 > 0:36:21- ..where the Vikings landed - and settled.
0:36:24 > 0:36:28- For centuries, local people - scraped a living by fishing.
0:36:32 > 0:36:35- Like the vast majority - of Husavik's residents...
0:36:35 > 0:36:40- ..the sea has been a regular - companion to Stefan Gudmundsson.
0:36:40 > 0:36:42- HE SPEAKS ICELANDIC
0:36:43 > 0:36:47- He went to sea for the first time - aged five.
0:36:47 > 0:36:49- He's from a long line - of fishermen...
0:36:50 > 0:36:53- ..stretching back five generations.
0:36:57 > 0:37:00- During the summer, Stefan's family - moved to an island...
0:37:01 > 0:37:03- ..an hour's journey - from the mainland.
0:37:10 > 0:37:14- Landing on the island - was just like stepping back in time.
0:37:15 > 0:37:19- These houses are still - without electricity and a water.
0:37:22 > 0:37:24- But what a place.
0:37:29 > 0:37:34- The waters surrounding the island - are incredibly fertile.
0:37:34 > 0:37:38- In the old days, - the bigger the fish, the better.
0:37:40 > 0:37:43- The fishermen caught - whatever was available.
0:37:44 > 0:37:48- Whales, dolphins and porpoise.
0:37:48 > 0:37:51- All these animals - were caught and eaten.
0:37:54 > 0:37:57- But things are different now, - says Stefan.
0:37:57 > 0:38:00- Hunting whales - no longer makes sense.
0:38:07 > 0:38:12- Husavik's economy now relies - more on tourism than fishing.
0:38:14 > 0:38:18- The most popular tourist pursuit - is a boat trip to watch whales.
0:38:22 > 0:38:25- For a decade, Stefan - has been running Gentle Giants.
0:38:26 > 0:38:30- It's Husavik's largest - whale watching company.
0:38:39 > 0:38:44- It's his chance to show the beauty - of his homeland's wildlife.
0:38:49 > 0:38:52- His ancestors would be amazed - to discover...
0:38:53 > 0:38:58- ..that the people of today - prefer cameras to harpoons.
0:39:09 > 0:39:13- But the tide is turning - against the sea giants of Husavik.
0:39:19 > 0:39:22- After a 25-year ban...
0:39:22 > 0:39:26- ..the Icelandic government - is now allowing whaling.
0:39:28 > 0:39:32- Whaling ships that have been idle - for so long...
0:39:33 > 0:39:35- ..are once again sailing the seas.
0:39:38 > 0:39:42- It is now legal - to kill these incredible mammals.
0:39:45 > 0:39:48- Changing the law - was a controversial step.
0:39:48 > 0:39:51- It's also a backward step, - in Stefan's view.
0:39:53 > 0:39:57- There's more money to be made - watching whales than killing them.
0:40:03 > 0:40:06- Apparently, - the whale watching industry...
0:40:06 > 0:40:09- ..is five times more lucrative - than hunting them.
0:40:09 > 0:40:11- But Icelanders maintain...
0:40:12 > 0:40:15- ..that it's a tradition - that should be preserved...
0:40:16 > 0:40:19- ..despite protests - from the rest of the world.
0:40:20 > 0:40:23- Stefan believes that people - are using the cause...
0:40:24 > 0:40:27- ..as an excuse - to express their identity.
0:40:34 > 0:40:38- But for some tourists, - the paradox of whale watching...
0:40:38 > 0:40:43- ..in a country that allows whaling - creates a dilemma.
0:40:44 > 0:40:47- If the visitors - kept away in protest...
0:40:47 > 0:40:51- ..the future of towns like Husavik - could be in jeopardy.
0:40:54 > 0:40:56- Without revenue from tourism...
0:40:56 > 0:41:01- ..the residents would have to move - to the capital to find work.
0:41:05 > 0:41:08- It's a familiar pattern - right across the island.
0:41:14 > 0:41:18- Reykjavik's population has doubled - during the last 50 years.
0:41:20 > 0:41:23- The argument - about the future of Husavik...
0:41:23 > 0:41:26- ..is a sign of the predicament - that Iceland faces.
0:41:33 > 0:41:38- Today, it must choose between - an old tradition and a new start.
0:41:42 > 0:41:48- With every tide, Iceland's - unique nature is under threat.
0:41:49 > 0:41:52- But I believe - there is one characteristic...
0:41:53 > 0:41:57- ..that could help the islanders - retain their land.
0:41:57 > 0:42:02- I'm on the last leg of my journey - around the island.
0:42:02 > 0:42:05- I've seen the great wonders - of its landscape.
0:42:05 > 0:42:10- But I also feel - that I've got to know the people.
0:42:10 > 0:42:13- Whether they live rural - or urban lives...
0:42:14 > 0:42:16- ..these people respect the land.
0:42:16 > 0:42:20- It's that respect - which unites them as a nation.
0:42:23 > 0:42:27- By uniting, the islanders - can find their voice...
0:42:27 > 0:42:30- ..and claim their place - in the modern world.
0:42:33 > 0:42:36- Back in Reykjavik, - I meet a group of lads...
0:42:36 > 0:42:38- ..who are trying to do just that.
0:42:39 > 0:42:41- Icelanders love music.
0:42:41 > 0:42:45- One of the most popular scenes - is the rock scene.
0:42:45 > 0:42:48- Dikta is one of many bands - that record in Reykjavik.
0:42:49 > 0:42:54- They're starting to make a name - for themselves internationally.
0:42:55 > 0:42:58- # From my heart I sing to you - and I'm hoping
0:42:58 > 0:43:03- # That you'll understand - what I'm trying to say #
0:43:04 > 0:43:08- The band formed - when the boys were at school.
0:43:08 > 0:43:12- At the time, many Icelandic artists - achieved chart success.
0:43:16 > 0:43:20- Bjork and Sigur Ros paved the way - for bands like Dikta.
0:43:21 > 0:43:24- It's incredible - that such a small island...
0:43:24 > 0:43:28- ..can produce - internationally-acclaimed artists.
0:43:31 > 0:43:37- Dikta belong to a new generation - of islanders who live in the city.
0:43:38 > 0:43:42- The rock scene - is vibrant in Reykjavik...
0:43:42 > 0:43:46- ..but as in Wales, - there's a limited market.
0:43:48 > 0:43:52- Very few can make a living - from making music.
0:43:52 > 0:43:56- You only have to sell 5,000 copies - to be awarded a gold disc.
0:44:00 > 0:44:04- They all have full-time jobs.
0:44:04 > 0:44:09- Two are teachers, one a pilot - and the other a doctor.
0:44:09 > 0:44:13- If they were - to give up their jobs...
0:44:13 > 0:44:16- ..they'd have to appeal - to a wider audience...
0:44:16 > 0:44:21- ..and deal with the dilemma - faced by many Welsh-language bands.
0:44:22 > 0:44:27- If you want to extend your following - beyond the Icelandic market...
0:44:27 > 0:44:29- ..it helps to record in English.
0:44:30 > 0:44:34- It's an international language - that is widely understood.
0:44:37 > 0:44:40- Like the Welsh, - many islanders are bilingual.
0:44:41 > 0:44:44- English is the language - of many businesses here.
0:44:46 > 0:44:49- But Icelandic - is the language of the arts.
0:44:49 > 0:44:55- By singing in English, - Dikta are breaking with tradition.
0:44:56 > 0:45:00- They feel that they are responding - to a new demand.
0:45:00 > 0:45:03- Communicating with the world.
0:45:06 > 0:45:08- # Oh, my God, I'm losing it
0:45:08 > 0:45:10- # I'm finally going out of it...
0:45:11 > 0:45:15- The medium may be English, - but Iceland's still the inspiration.
0:45:16 > 0:45:19- # Thank you
0:45:19 > 0:45:24- # Thank you for the world, - the world, the world...
0:45:28 > 0:45:32- Everything will be OK - - jump in and do something.
0:45:32 > 0:45:34- That's what Icelanders say.
0:45:37 > 0:45:41- Dikta are jumping in - and doing something.
0:45:45 > 0:45:48- # Thank you for the life
0:45:48 > 0:45:51- # And making me see
0:45:51 > 0:45:53- # Inside of me #
0:45:58 > 0:46:03- Dikta's attitude is typical - of a nation trying to survive...
0:46:03 > 0:46:05- ..on a wonderful island.
0:46:06 > 0:46:11- People who have learned to adapt - in a world of major change.
0:46:13 > 0:46:16- After centuries of being - at the back of our minds...
0:46:17 > 0:46:20- ..this island - is demanding our attention.
0:46:22 > 0:46:26- It's becoming more of an influence - on all our lives.
0:46:28 > 0:46:31- But if Iceland - has already been transformed...
0:46:33 > 0:46:36- ..there's a bigger change looming.
0:46:41 > 0:46:45- In the past, - islanders used their imagination...
0:46:45 > 0:46:48- ..to escape life's hardships.
0:46:51 > 0:46:53- But times are changing.
0:46:55 > 0:46:58- These days, - the people can escape tragedy...
0:46:58 > 0:47:02- ..and redirect nature as they wish.
0:47:06 > 0:47:08- But for how long?
0:47:08 > 0:47:12- As the world gets hotter - and the ice melts...
0:47:13 > 0:47:17- ..this country is being reshaped - in front of our eyes.
0:47:20 > 0:47:24- It isn't just the landscape - that's at risk.
0:47:25 > 0:47:30- For centuries, this country - has been isolated by the sea.
0:47:30 > 0:47:34- This has protected - the language and culture.
0:47:34 > 0:47:37- But globalization - is changing the world.
0:47:37 > 0:47:39- The sea is no longer a barrier.
0:47:39 > 0:47:41- There is confidence here...
0:47:42 > 0:47:45- ..but is it enough - to protect Iceland's uniqueness?
0:47:46 > 0:47:48- I very much hope so.
0:47:49 > 0:47:52- In so many ways...
0:47:52 > 0:47:55- ..the fate of Europe's - last remaining wilderness...
0:47:56 > 0:47:58- ..is important to us all.
0:48:29 > 0:48:31- S4C Subtitles by Adnod Cyf.
0:48:32 > 0:48:32- .