In Iceland, the only things that use CO2 generating energy sources are cars and ships/boats. All of Reykjavik is powered geothermally. In Reykjavik, your hot water comes from the MUNICPAL HOT WATER TANK which pulls it direct from hot springs and then mixes in enough cold water to lower the temperature to something which is safe.

The only obstacle between Iceland and carbon neutrality as a country is the remoteness, which currently makes it hard for them to switch entirely to EVs.

This is EXTRA geothermal energy they're not using. Because they have a lot of it.

(There is a downside to the municipal hot water system. The water smells of brimstone. It's harmless and I'm sure the locals don't even notice).