Kingdom of Denmark Strategy for the Arctic 2011– 2020.pdf

8/11/2019 Kingdom of Denmark Strategy for the Arctic 2011 2020.pdf

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Denmark, Greenland and the Faroe Islands:

Kingdom of Denmark Strategy for the Arctic 2011 2020

Photo.: Per Arnesen


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Denmark, Greenland and the Faroe Islands:

Kingdom of Denmark

Strategy for the Arctic 2011 2020


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PREFACE 7

1. INTRODUCTION 9

1.1. A region is opening up 9

1.2. Joint strategy for the Arctic 10

2. A PEACEFUL, SECURE AND SAFE ARCTIC 13

2.1. Basis for peaceful cooperation with emphasis onthe UNs Convention on the Law of the Sea 13

2.2. Enhanced maritime safety 16

2.3. Exercising of sovereignty and surveillance 20

3. SELF-SUSTAINING GROWTH AND DEVELOPMENT 23

3.1. High standards for the exploitation of mineral resources 24

3.2 Exploitation of renewable energy potential 30

3.3. Sustainable exploitation of living resources 31

3.4. Stronger integration in international trade 33

3.5. Knowledge-based growth and development 35

3.6. Arctic cooperation on health and social coherence 40

4. DEVELOPMENT WITH RESPECT FOR THE ARCTICS

VULNERABLE CLIMATE, ENVIRONMENT AND NATURE 43

4.1. Improved understanding of the consequences of climate change in the Arctic 43

4.2. Protecting the environment and biodiversity 45

5. CLOSE COOPERATION WITH OUR INTERNATIONAL PARTNERS 49

5.1. Global solutions to global challenges 49

5.2. Enhanced regional cooperation 52

5.3. Bilateral safeguarding of the Kingdoms interests 54

6. IMPLEMENTATION AND FOLLOW-UP 57

Table of content



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The Kingdom of Denmark is centrallylocated in the Arctic. The three parts of

the Realm Denmark, Greenland and theFaroe Islands share a number of valuesand interests and all have a responsibil-ity in and for the Arctic region. The Arcticmakes up an essential part of the com-mon cultural heritage, and is home to partof the Kingdoms population.

The Kingdom and its populations haveover several hundred years developedmodern and sustainable societies basedon democratic principles. The develop-

ment has affected all sectors of society -from education, health and research to theenvironment, trade and shipping. At thesame time, huge and sweeping changesare taking place today in the Arctic. Due toclimate change and technological develop-ments, vast economic potential is becom-ing more accessible.

It is our common objective that the Arcticand its current potential must be devel-

oped to promote sustainable growth andsocial sustainability. This developmentmust take place firstly to the benefit of theinhabitants of the Arctic and go hand inhand in safeguarding the Arctics environ-ment.

With new opportunities come new chal-lenges. The Arctic has to be managed in-ternationally on the basis of internationalprinciples of law to ensure a peaceful,secure and collaborative Arctic.

The purpose of this strategy is, on thebasis of an already strong engagement inthe Arctic, to reinforce the foundationfor appropriate cooperation on the manynew opportunities and challenges thatthe Arctic is facing.

The Kingdom is already a vigorous andimportant actor in the strategically vital

international cooperation on the future ofthe Arctic and in that connection attachesgreat importance to creating transparencyin and understanding for cooperation.

In the Kingdoms strategy for the Arctic2011- 2020, the Government, the Govern-ment of the Faroes and the Governmentof Greenland have set out the most impor-tant opportunities and challenges as wesee them today and in the near future. Onthat basis we have defined our common

political objectives for the Arctic.

We will through close cooperation in theKingdom and with our international part-ners - work towards the common overallgoal of creating a peaceful, prosperous andsustainable future for the Arctic.

Preface

For the Government of DenmarkLene Espersen

For the Government of GreenlandKuupik Kleist

For the Government of the FaroesKaj Leo Holm Johannesen



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Photo: Silje Bergum Kinsten / norden.org


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1.1. A REGION

IS OPENING UP

One of the most significant global issuesover the past 10 years is the vast changesin the Arctic region. The world has againturned its attention to the Arctic, this timemainly because of the climate effects inthe Arctic, the economic potential of theregion, and the geopolitical implicationsof changes in the Arctic. The political, eco-nomic and social development is alreadyunderway, including the flourishing ofadvanced democratic societies, and thefuture of the Arctic will be radically differ-

ent from the reality we know today.

Warming in the Arctic is occurring fasterthan anywhere else on the planet, and theaverage temperature in the Arctic has sur-passed all previous measurements in thefirst decade of the 21st century. Sea ice hasbeen shrinking, and the melting of Green-lands ice sheet and other Arctic ice capswill contribute more and more to the rise inglobal sea levels. Climate change has majorimplications for the global, regional and lo-

cal climatic and environmental conditionsand requires decisive global action.

The Arctic and the global community arepresented with both new challenges andnew opportunities.

Climate change poses new challenges tothe peoples of the Arctic and puts pressureon the natural environment. Warming will

especially change the basis of the Arcticinhabitants lifestyles and the indigenous

Arctic peoples culture. Moreover, the har-vesting of living resources plays a pivotalrole in the Arctic, and changes for examplein fish stock productivity and distributionis of great importance to the economy.Glaciers in the Arctic and the Greenland icesheet increasingly contribute to the globalrise in sea levels, and changes and dynam-ics in Arctic systems are crucial to globalclimate trends. Thus, they are of particularsignificance for the adaptation to climatechange on a global scale and thereby also

for the entire Kingdom. Increased eco-nomic activity and renewed geopoliticalinterest in the Arctic results in a number ofkey challenges to ensuring a stable, peace-ful and secure region characterized by dia-logue, negotiation and cooperation.

Climate change and technological develop-ments are also opening new possibilities forthe Arctic. Among them is increased accessto the exploitation of oil, gas and minerals,but also new shipping routes which can

reduce costs and CO 2 emissions by freightbetween the continents. It is estimatedthat the Arctic may contain up to 30% ofthe worlds undiscovered gas resources andabout 10% of undiscovered oil resources,and that ships sailing between East Asiaand Western Europe could save more than40% in transportation time and fuel costsby navigating the northern sea lanes northof Siberia rather than the southern route

through the Suez Canal. Furthermore, cli-mate change could provide access to new

fishing grounds in the Arctic where risingsea temperatures can pull fisheries to-wards the North. Commercial opportunitiesin the Arctic are enormous, not least for theGreenland, Faroese and Danish industries,which to a great extent already possess theskills that will be far more in demand withthe development of the Arctic region.

Overall we can expect a multi-facetedboom in activities in the Arctic over thecoming decades. New opportunities and

challenges must be handled proactively- with care, with long-term accountabilityand with respect for the Arctic societies,the rights of Arctic indigenous peoples, the

1. Introduction

FACTS ABOUT THE ARCTIC

The Arctic covers more than a sixth ofthe Earths total land mass plus theArctic Ocean which the Arctic coastalstates border. Unlike Antarctica, which

also has relatively low temperaturesyear round, the Arctic region is popu-lated by people, including more than30 different indigenous peoples suchas the Inuit who originate from theThule culture. The Arctic has a uniquewildlife, largely associated with thesea, including marine mammals suchas seals, whales and walruses.



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A peaceful, secure and safe Arctic with self-sustaining growth and

development with respect for the Arctics fragile

climate, environment and nature in close cooperation with our interna-

tional partners.

The Greenlandic-Danish report, Arctic in atime of change, of May 2008 and targetscontained herein remains an importantbasis for the Kingdoms various activitiesin the Arctic.

The purpose of this strategy is to focusattention on the Kingdoms strategic pri-orities for future development in the Arctictowards 2020. The aim is to strengthenthe Kingdoms status as global player inthe Arctic.

The Pacic Ocean

The Arctic Ocean

Atlantic Ocean

Canada Russia

Greenland

Iceland

Faroe Islands

Great Britain Denmark

NorwaySweden

Finland

USA

Source: Kort- og Matrikelstyrelsen



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Photo: Polfoto


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on the development of the Arctic, theremay be a continuous need for more de-tailed regulating of certain sectors. An ex-ample is the agreement on search and res-cue adopted at the Arctic Council ForeignMinisters Meeting in May 2011 in Nuuk.

The UN Convention on the Law of theSea 1982 is the global international legalinstrument in relation to the sea aroundthe Arctic, in that the Convention definesstates rights and responsibilities in rela-tion to their use of the oceans. Denmarkratified the Law of the Sea Convention onbehalf of the Kingdom on 16 November

2004 and to date the Convention has beenratified by 161 states. Of the five coastalstates of the Arctic Ocean, only the U.S.is not (yet) a party to UNCLOS, though

part of the Convention is an expressionof customary law and therefore bindingon countries not party to the Convention.Moreover, the United States, by Presiden-tial Directive of 9 January 2009 speciallyapproved the Convention as a means ofresolving border issues concerning thecontinental shelf in the Arctic.

Under the UNs Convention on the Law ofthe Sea, coastal states have the right tocreate an exclusive economic zone. In thiszone, the coastal state has exclusive rightto explore and exploit natural resourcesof the sea as well as the seabed and its

subsoil, and any other economic exploita-tion. The coastal state may also exerciseenvironmental jurisdiction in the zone. Theexclusive economic zone can extend to amaximum of 200 nautical miles (approx.370 km). Denmark and Greenland have anexclusive economic zone while an exclusiveeconomic zone has not yet been declaredin the Faroese fisheries territory.

Under article 76 of the UNs Conventionon the Law of the Sea, a coastal state has

the possibility of extending its continentalshelf beyond 200 nautical miles if within10 years of the Convention coming intoforce for the state concerned, it can docu-ment to the Commission on the Limitsof the Continental Shelf (CLCS) estab-lished pursuant to the Convention, thata number of scientific criteria are met.The coastal state will then have the rightto living and non-living resources on andunder the seabed beyond 200 nauticalmiles, subject to an obligation to make

payments or contributions to the Interna-tional Seabed Authority pursuant to Con-vention Article 82.

The Kingdom thus has a deadline of 16December 2014 to submit data and othermaterial to the CLCS as a basis for theextension of the continental shelf beyond200 nautical miles. The time limit can how-ever be exceeded in special cases under a

decision made by the convention partnersin 2008, as long as preliminary informationis submitted to CLCS before the deadlineexpires.

To document the claim on the continentalshelf the Danish Realm has launched acontinental shelf project that is basedin the Ministry of Science, Technologyand Innovation and is run in cooperationwith the Government of the Faroes andthe Government of Greenland, the PrimeMinisters Office, the Ministry of ForeignAffairs, and the Ministry of Finance. Theproject includes the participation of the

Danish, Faroese and Greenland authoritiesand scientific institutions, and is chargedwith identifying areas where the rights tonew seabed claims can be made, and tocollect, interpret and document the datanecessary to submit a claim to the CLCS.The Kingdom has submitted documenta-tion to the CLCS for claims relating to twoareas near the Faroe Islands and by 2014plans to submit documentation on threeareas near Greenland, including an areanorth of Greenland which, among others,

covers the North Pole.

The budget for the continental shelf project until 2014 is app. DKK 350 millionspread over 12 years. The actual workof the project is a collaboration betweenJarfeingi (Faroe Directorate of Geologyand Energy), the Danish Maritime SafetyAdministration, DTU Space (Institute forSpace Research and Technology), NationalSurvey and Cadastre and the GeologicalSurvey of Denmark and Greenland (GEUS).

Jarfeingi, together with GEUS, is projectmanager for the Faroese Continental ShelfProject (half funded by the Faroe Islands)while GEUS is the project manager for theGreenland part where the Bureau of Min-erals and Petroleum in Nuuk and ASIAQ(Greenlands Survey) take part.

The continental shelf project is very muchan example of a project that is feasible

ILULISSAT DECLARATION

The Ilulissat Declaration is a landmarkpolitical declaration on the Arcticsfuture. It was adopted in Ilulissat,Greenland on 28 May 2008 by min-

isters from the five coastal states ofthe Arctic Ocean - Denmark / Green-land, Canada, Norway, Russia and theU.S. The Ilulissat Declaration sendsa strong political signal that the fivecoastal states will act responsiblyconcerning future development inthe Arctic Ocean. The states have apolitical commitment to resolving dis-putes and overlapping claims throughnegotiation. The five countries alsoconfirmed that they will strengthen

their cooperation in important areas.This applies to both broad coopera-tion that in particular takes place inthe Arctic Council and the UNs Inter-national Maritime Organization (IMO),and to the practical everyday coop-eration on issues such as search andrescue, environmental protection andnavigational safety.

Kingdom of Denmark Strategy for the Arctic 2011202014


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due to all parties, including both the FaroeIslands and Greenlands, willingness andability to cooperate and the will to achievethe projects targets. Furthermore, the project is an example of how different institu-tions can cooperate across the Kingdomand benefit from one another. The con-tinental shelf project also has exemplaryresearch cooperation with other countries,such as the Swedish Polar Research Sec-retariat with which it has carried out manydata collection expeditions with the Swed-ish ice-breaker Oden. The project also hasfruitful research-based cooperation withCanada and Russia.

The Kingdoms claims on the continentalshelf will in some areas overlap with othercountrys continental shelf claims. Thereis close collaboration with other coastalstates in the Arctic Ocean to solve unre-

solved boundary issues beyond 200 nau-tical miles. As highlighted in the IlulissatDeclaration, unresolved boundary issuesin the Arctic will be resolved in accordancewith international law.

Besides maritime boundary issues, theKingdom has an unresolved issue relatingto the sovereignty of Hans Island (Hans )as both the Kingdom and Canada claimsovereignty over the island. In September2005, Denmark/Greenland and Canadamade a joint statement on Hans Island,and frequent consultations on the islandare in progress. Pending a permanent solu-

tion to the issue, the dispute will be han-dled professionally as would be expectedbetween two neighbouring countries andclose allies.

The Kingdom will work for peaceful co-operation between the coastal states ofthe Arctic Ocean in accordance with theIlulissat Declaration.

The Kingdom will advance concrete in-ternational legal regulation of the Arcticin areas where needed.

The Kingdom will seek to resolve out-standing unresolved boundary issuesand actively work to reduce the process-ing time of the Commission on the Limitsof the Continental Shelf and thereby en-sure greater assurance of coastal states

continental shelf claims in the Arctic.

The Kingdom will continue work on theContinental Shelf Project in order topromote its claim pursuant to the UNsConvention on the Law of the Sea.

THE CONTINENTAL SHELF PROJECT IN PRACTICE

Since 2006 the Danish Realm has con-ducted a series of expeditions in theArctic Ocean as part of the continentalshelf project. A factor common to theexpeditions is close cooperation withother countries. Canada, Russia and theU.S. have also been conducting scien-tific studies in the Arctic Ocean theseyears in preparation for an extensionof their respective continental shelves.The expeditions LORITA (2006), LOM-BAG and LOMGRAV (2009), for exam-

ple, were based on Canadian logistics.LOMROG I and II expeditions in 2007and 2009 were carried out with theSwedish icebreaker Oden, in coopera-tion with Sweden and Canada. In 2007,the expedition was for a period sup-ported by a Russian nuclear icebreaker.Another factor these expeditions have

in common is that in addition to the col-lection of data relevant to the continentalshelf project, emphasis is also placed onscientific output and follow-up researchin other fields. Thus, ice cores have beencollected, ice thickness measured, sam-ples of DNA and bacteria collected, geol-ogy, oceanography, plankton ecology allstudied, and the accumulation of mercurymeasured. All collections are conducted incooperation with Danish, Greenland, Swed-ish and American research institutions and

have led to increased knowledge of theArctic Oceans plate tectonics, palaeocli-matology, physical oceanography and eco-systems. Further expeditions are plannedunder the auspices of the ContinentalShelf Project in 2011 and / or 2012.

Source: Ministry of Science, Technology andInnovation / www.a76.dk



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2.2. ENHANCED

MARITIME SAFETY

Navigation in the Arctic is increasing, in-cluding in the waters around Greenlandand the Faroe Islands. Less ice coverage,especially in the summer months, has ledto a significant growth in maritime traffic,including cruise ships to areas of Green-land which until a few years ago were notpossible to navigate. In 2010, 43 cruise

ships berthed in Greenland ports, com-pared with 32 in 2009. Furthermore, ship-ping trade in Faroese waters has increasedconsiderably. Shipping in Faroese watershas risen by 5-6 times from 2008-2010and 40-50 sizeable cruise ships now call atFaroese ports each year.

Shipping operators are exploring new areasstill further north as ice conditions permit.

Meanwhile, prices of raw materials and notleast a long-term expectation of a shortageof oil and natural gas have led to increasedtrade in the exploration and exploitation ofnatural resources. The melting of sea icein the summer also allows for new ship-ping routes through the Northeast and theNorthwest Passage which could ultimatelyyield significant savings in transportationtime by the maritime transport of goods

between Europe and Asia. It is believed thatthe waters around Greenland and the FaroeIslands will experience a significant increasein maritime traffic in the coming years.

The increasing maritime activity is closelylinked with economic development in theArctic. For the sake of the fragile environ-ment in the Arctic, it is important to buildsustainable growth. For shipping, which

is a global industry, this means that in-ternationally high safety standards mustbe established for ships navigating in theArctic. Furthermore, in terms of shippingpolicy, it is important that the Kingdom isworking to promote shipping in the Arcticunder high standards where internationalregulation ensures that ships are compet-ing within a uniform framework.

Because of the extreme conditions insparsely populated Arctic regions, preven-tion of marine vessel accidents is crucial inthe Arctic. Regardless of climate changes,it will still be necessary to take account ofice, low temperatures, extreme weatherand the risk of grounding. It is thereforevital that ships are built and equipped sothey can operate under these conditions.Despite increasing intensity, marine traffic

Photo: Greenland Tourism



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will still be spread over a vast geographi-cal area far from ports. Therefore, shipsshould first and foremost use their ownrescue equipment if an accident shouldoccur, until the resources offered by theauthorities responsible in the area can bedeployed to assist. Therefore, preventivemeasures must be set in place that allowfor the continued and increased navigationin the Arctic, while at the same time effec-tively preventing and minimising marineaccidents and mitigating damage to theenvironment and nature.

It is important to implement preventive

safety measures, not least for the cruiseships that sail with many passengers, andoften with limited local knowledge. Here,experience shows that other cruise ships in the vicinity are crucial to saving lives. TheKingdom is working to promote coopera-tion on maritime safety in all key forums,particularly in the International MaritimeOrganisation (IMO), where binding rules fornavigation in the Arctic are drawn up, butalso through enhanced cooperation in theArctic Council.

To increase the safety of ships navigatingin Arctic waters, Denmark has introducedimproved port State control of cruise shipsplanning to sail to Greenland. Moreover,other countries have been urged to do thesame when these ships enter their portsbefore sailing to the Arctic. Furthermore, theMinistry of Economic and Business Affairshas entered into an agreement with theGovernment of Greenland (Naalakkersuisut)on the establishment of a liaison committee

in order to ensure that a high safety level ofnavigation in Greenland waters is sustainedand developed, whether this takes the formof international shipping or in the form ofdomestic navigation to and from Greenlandports. The liaison committee will prepare a joint plan in 2011 to ensure this.

Increased maritime traffic also placesgreater demands on infrastructure as

marine vessels require support in the formof a sound infrastructure. The Governmentof Greenland has focused on this chal-lenge with the establishment in 2009 ofa Transportation Commission and in thecoming years will address requirements inthis area, based on the recommendationsin the commissions report in 2011.

Updating nautical charts will be an im-portant factor under the auspices of theDanish Realm. In the future, ships willincreasingly use electronic nautical chartsand make use of satellite-based naviga-tion systems such as GPS which impose

stricter requirements on the accuracy ofcharts. In particular, a thorough knowledgeof water depth is necessary to navigatesafely at sea. In 2009 an agreement wasmade between the Minister of Environ-ment and the Government of Greenlandabout a renewal of the nautical charts forGreenland, which means that the chartsfor most of Southwest Greenland (fromCape Farewell to Uummannaq) - the busi-est Greenland waters - will be correctedand digitized no later than 2018. Due

to the vast sea areas, large areas of theGreenland waters will be unsurveyed be-yond 2018 while still greater areas becomeaccessible to shipping as the ice melts.For reasons of safety at sea the Kingdomwill furthermore continue to prioritize thework of the International HydrographicOrganization (IHO), such as in the regionalcommission on the Arctic which was es-tablished in 2010.

Similarly maritime safety is supported by

ensuring the availability of reliable informa-tion on weather, sea conditions and ice.The Greenland Ice Services at the DanishMeteorological Institute was establishedin 1959 as one result of the shipwreck ofM / S Hans Hedtoft. The Services maintask so far has been to map the ice con-ditions in the Cape Farewell area for thesafe navigation of cargo ships betweenGreenland and Denmark. Because of

changing climatic conditions and altereddistribution of sea ice in Greenland wa-ters, the navigational pattern of ships haschanged dramatically. Combined withthe growth of cruise ship activity and oilexploration, there is a need for intensifiedice and weather warning alerts furthernorth in both West and East Greenland. Itwill therefore be a priority that the existingIce Services be adapted to the increasedrequirements for observation, forecast-ing and dissemination of ice conditions inGreenland waters.

Furthermore, enhanced surveillance of

maritime traffic in the Arctic will contributeto improved prevention of accidents andcoordination of the rescue efforts. It alsoprovides greater opportunity to intervenebefore an accident can occur. Currently,ships sailing to Greenland must report tothe so-called GREENPOS reporting system,which requires ships in Greenland watersto continuously report their position to theGreenland Command. Larger ships alreadysend their positions via the satellite-basedLRIT (Long Range Identification and Track-

ing) system. Surveillance is expected to beimproved, for example by using new tech-nology with satellite reception of ships AISsignals (Automatic Identification System)as almost all larger ships are equippedwith AIS.

The Faroese Maritime Authority followsinternational developments and handlesFaroese interests in the IMO because ofits status as an associate member ofIMO. With the introduction of AIS and

LRIT, which are based on IMO mandatoryrequirements, it has been possible to im-prove the monitoring of foreign and Faro-ese vessels in Faroese waters. In additionto this, cooperation has been establishedbetween Denmark, Greenland, the FaroeIslands, Norway and Britain for the mutualexchange of AIS data in the North Atlanticregion.



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THE NEW SHIPPING LANES

The continued melting of ice in theArctic Ocean is expected over a 10 to20 year period to result in the open-ing (at least during parts of the year)of the Northwest Passage over NorthAmerica and the Northeast Passageover Russia. The economic benefits ofthese new routes are potentially sig-nificant. The opening of the NorthwestPassage will reduce the distance fromSeattle to Rotterdam by almost 25%compared to the route via the Panama

Canal. The possibility of navigating theNorthern Sea Route via the NortheastPassage will reduce the distance be-tween Rotterdam and Yokohama by

over 40% compared to the route via theSuez Canal. Furthermore, the opening ofthese alternative routes means that themilitary and commercial shipping will nolonger be dependent on passage throughthe political unstable Middle East nor thepiracy-infested routes through the SouthChina Sea, the Malacca Straits and theGulf of Aden.

Danish pioneers: In September 2010, theheavy ice class bulk carrier, Nordic Bar-

ents, of the Danish shipping company,Nordic Bulk Carriers, sailed via the Arcticand the Northeast Passage to Asia as thefirst cargo ship ever to do so. The voyage,

with 41,000 tons of iron ore concentratefrom Kirkenes in northern Norway toChina was around 30% shorter than if theship had used the traditional route viathe Mediterranean and the Indian Oceanand took place in close cooperation withthe Norwegian Tschudi Shipping Com-pany and the Russian authorities. In Au-gust 2008, the Danish cable ship PeterFaber, assisted by Canadian pilots, sailedas the first commercial vessel throughthe Northwest Passage thus saving 15

days on its voyage from Japan to New-foundland in order to lay cables betweenGreenland and Canada.

NorthwestPassage

NorthernSea Route

Source: Hugo Ahlenius, UNEP/GRID-Arendal



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2.3. EXERCISING OF SOVEREIGNTY

AND SURVEILLANCE

The Arctic is and must be a region char-

acterized by peace and cooperation. Eventhough the working relationship of theArctic Oceans coastal states is close,there will be a continuing need to enforcethe Kingdoms sovereignty, especially inlight of the anticipated increase in activityin the region. While the Kingdoms area inthe Arctic is covered by the NATO treatyArticle 5 regarding collective defence, theenforcement of sovereignty is fundamen-tally a responsibility of the Realms centralauthorities. Enforcement of sovereignty

is exercised by the armed forces througha visible presence in the region where sur-veillance is central to the task. In addition,the armed forces play an important role inthe provision of a range of more civilian-related duties. Within the entire spectrumof tasks, the Kingdom attaches great im-portance to confidence building and coop-eration with Arctic partner countries.

The long-term political agreement ondefence (Danish Defence agreement2010-2014) involves a stronger focus on

the tasks of the Danish Armed Forces inthe Arctic. The agreement includes fouroverriding initiatives that must be viewedin light of climate change and increasedactivity that would foreseeably result in anincrease of tasks for the armed forces.

Firstly, the Armed Forces North Atlanticcommand structure will be streamlined bythe amalgamation of the Greenland Com-mand and the Faroe Command into a jointservice Arctic Command.

Secondly , the ability of the armed forcesto conduct operations in the Arctic en-vironment will be strengthened throughthe establishment of an Arctic ResponseForce. The response force would not beestablished permanently, but designatedfrom existing armed forces and emer-gency preparedness units with Arcticcapacity or the potential to develop one.

The range of tasks of the Arctic ResponseForce is for defined periods and in de-fined areas anticipated to strengthen the

armed forces enforcement of sovereigntyand surveillance, for instance throughmilitary exercises. The force could also bedeployed in other situations such as in as-sistance to the Greenlandic society.

Thirdly , a risk analysis of the maritime en-vironment in and around Greenland is to beconducted in the light of an anticipated ex-pansion of traffic and activity in the Arctic.

Fourthly , towards 2014 a comprehensive

analysis of the armed forces future tasksin the Arctic is to be carried out, includingopportunities and potential for closer coop-eration with partner countries in the Arcticconcerning surveillance and the like. In thisconnection it is to be examined whetherthe Thule Air Base may play a larger role inregard to the tasks performed in and aroundGreenland by the Danish Armed Forces incooperation with other partner countries.

THE POLAR CODE

The Polar Code will supplement theinternational maritime safety and envi-ronmental conventions which alreadyapply in the Arctic with additional ruleson rescue equipment, fire fighting, ice

navigation and navigation in uninhabitedareas to allow for Arctic conditions. ThePolar Code must also allow for the chang-ing requiretments imposed by geographyand seasons. The work is taking place at

the International Maritime Organisation(IMO) and the rules are expected to comeinto force in 2013-2014.

AGREEMENT ON AERONAUTICAL AND MARITIME SEARCH AND

RESCUE IN THE ARCTIC COUNCIL AND PREPAREDNESS IN GREENLAND

At its meeting of foreign ministers in

May 2011, the Arctic Council adopteda mutual agreement on Search andRescue (SAR), which aims to strengthencoordination of rescue efforts, so in

the event of an accident, it is possible to

receive rapid assistance from neighbouringcountries emergency services. The Ministryof Economic and Business Affairs, Ministryof Transport and Ministry of Justice have

overall responsibility for the SAR response

in Greenland. The daily operational man-agement is handled by the GreenlandCommand, the Air Rescue Service and theChief of Police office in Greenland.



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Photo: Ivars Silis og Nukissiorfiit / Grnlands Energiforsyningsselskab


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Mineral resources shall be exploited under the highest international standards of safety,health, environment, preparedness and response, and transparency with high returns forsociety.

The use of renewable energy sources must be increased significantly. Living resources, including fish, shellfish and marine mammals shall be harvested in a sus -

tainable manner based on sound science. New opportunities in the Arctic must be exploited in close cooperation with industry, and

an optimal regulatory framework will be created for exports and investments. The Kingdoms Arctic research will be at the global forefront, and research and training

efforts must support the development of industry and society in the Arctic.

The Kingdom will promote Arctic cooperation on health and social sustainability, includingresearch and best practices in areas of shared challenges.

It will be an overriding political priority forthe Kingdom and particularly in Greenlandover the next ten years to seize the manyopportunities in the Arctic to create moregrowth and development. The huge eco-nomic potential in the Arctic must be real-

ized while appreciating its human impact,i.e. the economic and social integrationof the population and with sensitivity toenvironmental concerns, thereby creatinga healthy, productive and self-sustainingcommunity. Greenland is already a fast-changing society and peoples in the Arctic,including the Greenlanders, may have toadapt to even more extensive changes inthe future due to climate change, societal

developments and the restructuring ofindustry. Integration into the new opportu-nities in the Arctic will place great demandson the populations adaptability and mobil-ity. It will also be a significant challenge forGreenland to develop policies which, apart

from the goal of social and societal-relatedsustainability, deal with the prospect ofsignificant foreign labour migration.

There is a close correlation between on theone hand realising the potential of naturalresources, new trade and investment op-portunities, and enhanced research andeducation contributions while on the otherpromoting health and social sustainability,

which are the areas specifically addressedin this chapter. This concerns a numberof strategic priorities for the Kingdom inrelation to economic and societal develop-ment in the Arctic, but also other impor-tant areas such as enhanced economic

development and diversification of theeconomy. This applies i.a. to the develop-ment of the tourist industry and bolsteringthe overall development with adequateinfrastructure.

Today, tourism , second only to fisheries,is the most important export industry inGreenland, and the tourist industry haspotential for growth in the future. This ap-

3. Self-sustaining growthand development



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plies both to land-based tourism and thecruise-liner business. Among the benefitsof the latter is that even small towns andvillages along the coast can be involved intourism. The land-based tourism gener-ates by far the greatest revenue but is cur-rently dependent on only a few markets,primarily the Danish. Therefore GreenlandsTourist Board is working on the develop-ment of a new national brand that moreclearly defines Greenland as an adventuredestination focusing on sustainable tour-ism and which to a greater extent appealsto the global market.

Infrastructure is a key element in the de-velopment of the Greenland society andto ensure long term sustainable develop-ment, the Government of Greenland set upa transportation commission in 2009 forthe socio-economic analysis of the entireinfrastructure in Greenland. The Commis-sions recommendations of April 2011 willform an important element in future policydecisions on the evolution of Greenland in-frastructure. This will include decisions onthe location of ports and airports. Theseprojects will be costly and therefore privatefunding is seen as a possibility, just as min-ing projects located near urban areas could

be included in potential funding of largerlocal infrastructure projects.

3.1. HIGH STANDARDS

FOR THE EXPLOITATION

OF MINERAL RESOURCES

Studies from the U.S. Geological Survey,among others, estimate that there may beenormous, as yet unproven oil and gas re-sources in the Arctic, just as previously major discoveries were made of gas especially

(in Russia) but also oil (in Alaska). Specifi-cally, it is estimated that the Arctic maycontain up to 30% of the worlds undiscov-ered gas resources and approx. 10% of theoil resources. Approximately 97% of oil andgas resources are believed to lie within theArctic States exclusive economic zones,and are thereby allocated.

In Greenlands case, it is estimated that31 billion barrels of oil and gas off thecoast of Northeast Greenland and 17 bil-

lion barrels of oil and gas in areas westof Greenland and east of Canada couldbe discovered, though the probabilityis greater for discoveries in NortheastGreenland. Greenland is also rich inmineral deposits, including zinc, cop-per, nickel, gold, diamonds and platinumgroup metals, and has substantial depos-its of so-called critical metals, includingrare earth elements, several of which

are important components of high-endtechnology, including green energy tech-nologies.

The mineral resources sector in Greenlandhas significantly matured over the last10-15 years as a result of a long-term anddeliberate strategy. After the adoption byParliament Act No. 7 of 7 December 2009on mineral resources and activities of rel-evance hereto, the mineral resources sec-tor was fully taken over by the GreenlandSelf-Government on 1 January 2010 andis a key element to building growth indus-tries and a self-sustaining economy. In

2008, Greenland had already adopted theParliament Act No. 6 of 5 December 2008on Greenlands Mineral Resources Fund,which is inspired by the Norwegian modelso that oil and gas revenues also benefitfuture generations.

The vision is to exploit mineral resourcesin the Arctic under the best internationalpractices, and in continued close coop-eration with relevant authorities of theDanish Realm and international partners.

Greenland and the Faroe Islands shall beattractive areas for exploration, and themanagement of mineral resources mustbe competent and efficient in ensuringthat such mineral resources are exploredand exploited under the highest standardsof safety, health, environment, emergencypreparedness and transparency. The min-eral resource industry must be developedwhile strongly taking into considerationthe fragile Arctic environment so it con-tributes to sound economic development,

including the creation of new jobs anda maximum return to society. Mineralresource activities will also be carriedout with sufficient preparedness thatthe public is kept from harm (based onthe polluter-pays-principle) and that theKingdoms international obligations canbe met in case of major unscheduled inci-dents. This should be a model for resourceexploitation across the whole of the Arctic.

GEOLOGICAL SURVEY

OF DENMARK AND

GREENLAND GEUS

The Geological Survey of Denmark andGreenland (GEUS) is responsible forthe scientific exploration of the geo-logical survey of Denmark and Green-land, including their respective shelfareas. GEUS will conduct research atthe highest international level on is-

sues of importance to the exploitationand protection of Denmark and Green-lands geological natural resources.GEUS also carries out mapping, moni-toring, data collection, data manage-ment and the presentation of theseissues. GEUS provides geologicaladvice to public authorities on nature,environment, climate, energy and min-eral resource related questions andparticipates in the authoritys regula-tory work within these areas. GEUS

is a national geological data centreand in that capacity makes data andknowledge available to the authorities,educational institutions, businessesand individuals. GEUSs tasks in rela-tion to Greenland are generally definedin the Self-Government Act and aredescribed in the Mineral Resources Actfor Greenland.



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In the oil and gas sector, licensing roundshave been held biannually since 2002and alongside rising oil prices in recentyears, there has been a breakthrough inthe international interest in Greenlands oilpotential. An area of more than 200,000km offshore South and West Greenlandis now covered by 20 exploration and ex-ploitation licenses, and in 2010 seven newexploration licenses were issued in BaffinBay off the coast of Northwest Greenland.A licensing round for oil exploration off thecoast of the northernmost part of EastGreenland will be held in 2012/2013. Inthe coming years in particular, there will

be a need to maintain the level of activityoffshore of West and Northwest Green-land, while ensuring a broad professionalknowledge building in the more inaccessi-ble areas off Northeast Greenland. With re-spect to oil and gas finds and subsequentproduction, a number of new challengesand tasks will emerge. As a result, coordi-nation and cooperation with neighbouringArctic states with similar challenges will bea major priority.

In 2000 the first licenses for explorationof the Faroese shelf were issued. Subse-quently there were two licensing rounds in2005 and 2008. In total, 17 licenses havebeen issued, of which 12 are currentlyactive with a total of 11 licensees. Of the7 wells drilled so far, 5 contain hydrocar-bons, but finds on a commercial scalehave not yet been confirmed. There is stillunexplored potential for exploration instructures that could potentially containlarge amounts of hydrocarbons. Currently

there are two outstanding drilling commit-ments, of which the first well will be drilledin 2012.

The current relatively modest level of activ-ity has already had favourable effects onthe Faroese economy through direct andindirect taxes in connection with drillingand area fees. Another significant benefitis the boost in commercial competencies

and employment opportunities whichwholly or partly are attributable to explora-tion activity on the Faroese ContinentalShelf. One condition for acquiring a licenseis that a commitment must be enteredinto to finance activities that build up localcompetencies. This enhancement of com-petence must be commercially orientedthough not necessarily be related to the oilindustry. The arrangement should be seenas an investment in both the present andfuture, and already several hundred projects, both large and small, have been car-ried out. This has created a solid basis forlocal involvement provided that commer-

cial discoveries are made on the Faroes.

In the mineral sector , exploration inGreenland in recent years has especiallytargeted gold, zinc, iron, copper, diamonds,rubies and a number of critical metals, in-cluding rare earth elements. The prospectsare bright that the development of themineral sector can significantly underpinthe development of an economically self-supporting Greenland. The Governmentof Greenland is expecting that a number

of mature projects developed with for-eign partners and partial involvement ofDanish companies will create over 1,000new jobs by 2015. Regarding radioactiveminerals, the Self Government follows azero-tolerance policy, which means that itdoes not permit the exploration and exploi-tation of deposits that contain radioactiveelements, either as a main product, by-product or residue. In 2010 an amendmentwas made to the standard terms for explo-ration, which permits the carrying out of

feasibility studies, including environmen-tal, health and safety studies of depositscontaining radioactive elements.

Greenland will continue the successfullicensing policy and strategy of com-petitive tenders in the oil and gas sector.Sets of rules will be continually adaptedto optimize safety, health, environmentand transparency standards through

the use and improvement of best avail-able techniques and practices. This willinclude inspiration from other countriesregulations, not least the NorwegianNORSOK standards.

Cooperation will be expanded withauthorities in similar areas, includingNorway and Canada, and participationin relevant international fora such as theArctic Councils working groups is to begiven high priority.

The Kingdom will work actively in theUnited Nations Maritime Organisation

(IMO) or other international fora, for theestablishment of an international liabil-ity and compensation convention anda possible international compensationfund for pollution damage caused byoffshore oil exploration and exploitation.

Terms and conditions for licenses toexploit must be reasonable for bothlarger and smaller companies, resilientto fluctuating market conditions as wellas simple and easy to administrate for

companies and authorities.

Mineral sector activities must be con-ducted responsibly as regards environ-mental, health and safety concerns, andan appropriate supervisory body mustensure compliance hereof.



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OIL AND GAS ACTIVITIES IN GREENLAND

High standards for activitiesIn connection with the exploration andexploitation of oil and gas resourcesregulated by the Greenland MineralResources Act, the licensee must en-sure that safety, environmental andhealth risks are identified, assessedand reduced as much as practically andreasonably possible.

The Bureau of Minerals and Petroleum(BMP) guidelines and terms of approval

are based largely on the NorwegianNORSOK standards which determinehow the licensee can comply with in-ternational best practice in relation tospecific operational procedures andpractices. The BMP follows strict com-pliance with international standards,supplemented by an emergency com-mittee broadly composed of authori-ties of the Danish Realm (including theDanish Armed Forces and the DanishMaritime Authority) and Greenland

authorities. The Emergency Commit-tee monitors the precautionary actionstaken by the licensee, and is responsiblefor coordinating the authoritys effortsin accident and emergency situationson offshore installations.

Thus, permission is only given forexploration and exploitation activi-ties provided that the Government ofGreenland is fully assured that theactivities are performed properly in a

safe and healthy manner and stringentrequirements are made of licensees re-garding their own capacity to deal withaccidents and emergencies. Under theMineral Resources Act, the responsibil-ity for clean-up operations and com-pensation always lies with the partycausing damage, whereby a number ofstringent requirements are imposed fol-

lowing international standards regardingfinancial guarantees and insurance for oiland mineral activities.

Before new offshore areas are designatedas oil / gas licensing areas, the Govern-ment of Greenland sets in motion thepreparation of strategic environmentalimpact assessments in order to ensurethat any oil / gas activities can be imple-mented on an environmentally sustain-able basis. The strategic environmental

impact assessments are prepared on ascientific basis by the National Environ-mental Research Institute and GreenlandsInstitute of Natural Resources. In connec-tion with an application for the carryingout of concrete oil / gas activities whichare likely to have a significant impact onthe environment, such as explorationwells, the licensee is required to conduct aspecific assessment of the environmentalimpact (EIA). The EIA report is submittedfor public hearing and must be approved

by the Government of Greenland beforethe application to carry out the activity canbe approved.

Under the Mineral Resources Act, compa-nies seeking a license for exploitation mustalso prepare an Assessment of SocietalSustainability (SSA report). The reportmust, for example, describe the utilisationof Greenland manpower and enterprises inthe project, including how the proportionof Greenland employees and subcontrac-

tors can be increased through training andskills development.

Cooperation with Cairn EnergyScottish Cairn Energys exploratory drillingfor oil in waters west of Qeqertarsuaq andNuusussuaq Peninsula is presently themost advanced project, and collaborationbetween the company and the authorities

has been very positive. The self-govern-ment has used Norwegian consultantsfor the regular monitoring of compliancewith stringent safety requirements, andsimilarly the self-government has estab-lished cooperation with the Canadiangovernment in the area. Cairn Energy hasalso complied with the Greenland author-itys demands for financial guaranteesin case of an accident, oil spill or a majorenvironmental emergency. Cairn Energy,affected municipalities and Greenlands

Self Government have also entered intoa cooperation agreement on recruitingGreenland labour in the future, includinginitiatives which develop relevant coursesas part of the self-governments effortsin using the resident workforce and lo-cal businesses wherever possible in thefuture.

Licensees in oil andgas sectors in GreenlandAs of 1st January 2011 there were 20

active exclusive right licenses for explora-tion and exploitation of oil and gas in thesea around Greenland. During 2012-2013a licensing round will be carried out cover-ing offshore Northeast Greenland. Thereis great interest from a number of differ-ent companies and as of January 2011the licensees are: NUNAOIL (Greenland),DONG (Denmark), Maersk Oil (Denmark),ExxonMobil (U.S.), Chevron (U.S.), Husky(CAN), Cairn Energy (UK), PA Resources(SVE), ConocoPhillips (U.S.), Shell ( NL),

Statoil (NOR), GDF Suez (FRA) and Petro-nas (Malaysia).



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OIL ACTIVITIES IN THE FAROE ISLANDS

High standards for activitiesThe execution of exploration activities inthe Faroes takes place with continuousregard for the environment and the exist-ing fishing industry. Safety proceduresfor example are on par with the Danish,Norwegian and British. This includesrequirements for the licensees regardingtheir technical and economic expertiseas a part of their responsibilities. Further-more, exploration activity must always liveup to best practices in the industry and

be geared to the circumstances of thespecific drilling location. To be updated ondevelopments in safety matters, the FaroeIslands is a member of NSOAF (North SeaOffshore Authorities Forum), an associa-

tion of offshore safety authorities in countriesin Western Europe with an oil industry. As theexploration activity on the Faroese shelf isgeographically close to activity in the UK andNorwegian waters, the emergency prepared-ness is also tied to response equipment onthe respective British and Norwegian conti-nental s helves. To a great extent, this placesemergency preparedness on the Faroeseshelf on a par with that in Norway and the UK.

Authorities responsibility

for oil drilling in the Faroe IslandsThe Faroese Ministry of Trade and Industryhas overall responsibility for exploration activ-ity in the Faroes. The everyday managementis delegated to Jarfeingi (Faroese Earth and

Energy Directorate), which also deals withpublic sector geological interests, and hasan advisory function regarding energy is-sues.Umhvrvisstovan (the EnvironmentAgency) is responsible for the Faroese ma-rine environment act and the Faroe IslandsMarine Rescue Coordination Centre (MRCC)Torshavn is responsible for coordinationregarding incidents offshore.

Oil companies active in the Faroe Islands

Atlantic Petroleum (FO), Cieco (Korea),Dana Petroleum (UK), DONG (DK), ENI (ITA),Exxon Mobil (US), Faroe Petroleum (FO),First Oil Expro (UK), OMV (strig), SagexPetroleum (NOR), Statoil (NOR).

GREENLANDS STRATEGY FOR MINERALS

The Government of Greenlands strat-egy and plan of action for exploration

and exploitation of hard minerals isdescribed in the sectoral plan MineralStrategy 2009. The main objectives ofthe strategy are that all projects mustbe implemented socially sustainably,and ensuring that:

1) The society will receive a competi-tive share of profits gained frommining.

2) Greenland manpower and enter-prises are used to the greatest

possible extent.3) All mineral activities are to be con-

ducted properly in terms of safety,health and the environment.

4) The population is ensured participa-tion and knowledge in the develop-ment of the mineral sector.

5) The development proceeds withrespect to Greenland values.

No. of prospecting licences

No. of exploration licences

No. of exploration licences

No. of mines in production

0

20

40

60

80

100

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

0

5.000

10.000

15.000

20.000

25.000

2002 2003 2004 2005 2006 2007 2008 2009 2010

Area (km ) covered by exploration licenses

Development of mineral activities in Greenland



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CRITICAL METALS / RARE EARTH ELEMENTS AND DEPOSITS IN GREENLAND

A raw material/ mineral is consideredcritical if it is used for purposes forwhich there are no other satisfactoryalternatives. A given mineral resourcescriticality is dynamic and is determinedby issues of supply, demand and thepotential reuse of the resource. Newtechnology can change the require-

ments. The time span from exploration tothe opening of a new mine will generallynot be less than 10 years; therefore themining industry has difficultly in keepingpace with market requirements for newresources. There may be various reasonswhy it can be difficult to obtain a givencommodity, for example:

1) Geological conditions;2) Technical factors;3) Social conditions;4) Political factors, and5) Economic conditions

i.e., whether or not theraw material is availableon the market.

Estimated by the EU, respectively (Raw Materials Supply Group. EU 2010), U.S. (Minerals, Critical Minerals, and USE economy 2008) and UNEP (CriticalMetals for Future Sustainable Technologies and their recycling potential; UNEP 2009), respectively. PGM = Platinum Group Metals. REE = rare earthelements. Estimated by the EU (Raw Materials Supply Group. EU 2010). Can be high with other technology. Greenland currently has zero-tolerance policy on uranium and thorium.


Overview of mineral resources which can be critical in the long term

Known deposits in Greenland

Mineral Area Ratingof resource

Aluminium - Low

Zinc South, West and North Greenland Moderate

Nickel East Greenland Moderate

Manganese - Low

Iron South, West and North Greenland Large

Chrome Southwest Greenland Moderate

Molybdenum East Greenland Large

Vanadium South and East Greenland Large

Titan South and East Greenland Large

Copper North and East Greenland Large

Uranium South Greenland Moderate

Mining Opportunities in Greenland

Overview of critical minerals (short term)

Mineral Area Ratingof resource

Antimony East Greenland Moderate

Beryllium South Greenland Low

Cobalt - Low

Fluorspar East Greenland Low

Gallium East Greenland Moderate

Germanium - Unknown

Graphite West- and East Greenland Moderate

Indium - Low

Lithium - Low

Magnesium - Low

Manganese - Low

Niobium South Greenland Large

PGM 2 West- and East Greenland Large

REE 3 South Greenland Large

Tantalum South Greenland Large Tellurium - Unknown

Tungsten East Greenland Moderate


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Photo: Greenland Tourism


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3.2. EXPLOITATION OF

RENEWABLE ENERGY POTENTIAL

The Kingdom will pursue ambitious andactive energy and climate policies. Theenergy policy objectives of Greenland, Den-mark and the Faroe Islands respectivelyare to create security of supply, to reduceemissions of greenhouse gases and airpollution while creating a basis for com-mercial development. A shared ambitionis to significantly increase the harnessingof renewable energy sources. Denmarkscommitment to renewable energy targetsunder the EU is 30% by 2020. Greenlandwill increase its share of renewable energy

to 60% of total energy production by 2020.The Faroe Islands will increase the use ofrenewable energy, including the target of75% of electricity production based on re-newable energy by 2020.

Greenland has a tremendous natural po-tential for renewable energy, which amongother things can be utilised for the develop-ment of emerging industry. An exampleis the designing, in collaboration with theAmerican company, Alcoa, of an aluminium

smelting plant in Maniitsoq which will beoperated solely by hydropower. Increasingfocus in Greenland is placed on small-scalesolutions for renewable energy to be usedin smaller towns and settlements where

there is currently no access to hydropower.The Government of Greenland providessupport for developing renewable energyprojects, including micro hydropower plants,and solar and wind power projects that aimat a green and self-sufficient Greenland en-ergy supply. Furthermore, the utilisation ofrenewable energy in the transport sector isbeing explored. The development of renew-able energy sources is a key issue in Green-lands international cooperation.

Denmark, Greenland and the FaroeIslands will increase the share of renew-able energy sources in the energy supply

in order to increase the security of supply,reduce emissions of greenhouse gasesand air pollution, and thus create thebasis for enhanced commercial develop-ment and knowledge sharing throughtraining and participation in projects.

The Government of Greenland willcontinue to promote the utilisation ofrenewable energy in Greenland. In thesmaller towns and settlements, thedevelopment of local energy solutions

based on renewable energy must besupported. The Government of Green-land will also promote Greenlandspotential to house industrial productionbased on renewable energy.

GREENLANDS COMMITMENT

TO RENEWABLE ENERGY

In 1990, the use of renewable en-ergy in Greenland was almost zero,but since 1993, Greenlands Self-Government has annually invested anaverage of approx. 1% of GDP in thedevelopment of hydropower and otherrenewable energy sources. Today,renewable energy makes up 60% ofthe public energy supply via the powersupply company, Nukissiorfiit. Whenthe Ilulissat hydroelectric plant comes

into operation in 2013 as expected,the proportion will rise to approx. 70%.

The Greenlandhydroelectric power plants: Buksefjord Power Station at Nuuk

(1992/2008) with an output of 45 MW;

Tasiilaq hydroelectric plant (2005)with an output of 1.2 MW;

Qorlortorsuaq hydroelectric plant

(2008) with an output of 7.2 MW;

Sisimiut hydroelectric plant (2009)with an output of 15 MW;

Ilulissat hydroelectric plant (to beinaugurated in 2013) will have anoutput of 22.5 MW.

Through the annual Greenland FinanceAct account for the Support of Re-search and Development of Renewable

Energy a number of concrete projectsare supported, including the installa-tion of solar panels and wind turbines,installation of remote readers and thedissemination of renewable energy.Since 1993, an average of 1% of GDPhas been invested annually on thedevelopment and establishment ofhydropower.

Photo: Ivars Silis and Nukissiorfiit



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3.3. SUSTAINABLE EXPLOITATION

OF LIVING RESOURCES

The Arctic regions are unique ecosystemsthat represent important values biologi-cally and socially. The natural resourceshave shaped the development of Arcticfishing and hunting cultures and tradi-tions, and the utilization of fish and marinemammals has always formed the bedrockof Arctic societies and economies. Histori-cally, supply-related and cultural consid-erations are fundamental to the Arcticpopulations relationship to the exploita-tion of living resources, whether fish or ma-rine mammals. The exploitation of living

marine resources is one of the essentialeconomic factors in both Greenland andthe Faroe Islands.

The structure, function, diversity and in-tegrity of the ecosystem in the Arctic arecrucial to the productivity. The Arctic musttherefore be managed so as to ensurea healthy marine ecosystem with eco-nomically sustainable species and stocks.Ecosystem-based management meansthat management of the ecosystem is

based on a holistic approach where allparts of the ecosystem and all impacts,including those from human activities, aretaken into account in management. Themanagement of living marine resources inthe Arctic must ensure a high return withinthe ecosystems capacity, ensure minimalimpact on the ecosystem, and guaranteerespect for the ecosystems capacity forfuture production of living resources.

Greenland and the Faroe Islands fishery

takes place mainly in the North Atlantic,the Denmark Strait and the David Strait.Greenlands fishery is based on a quotasystem whose aim is to ensure a sustain-able exploitation of certain stocks. There-fore, an annual Total Allowable Catch(TAC) of the principal species is stipulated,based on biological advice and respectingsocio-economic concerns, commercialinterests and international obligations.

The biological advice is provided by theGreenland Institute of Natural Resourcesand a number of regional organizations,particularly the ICES and NAFO.

Faroese fishing of pelagic stocks and fish-ing in other waters under bilateral andmultilateral agreements is mainly basedon quota systems, while for groundfishfisheries around the Faroe Islands thereis a special system of fishing days and ar-eas which are closed as required. Besidestheir own expertise, the Faroese also drawon international advice, particularly ICES.Greenland and the Faroe Islands each have

agreements with one another and alsowith the EU, Norway and Russia, and theFaroe Islands furthermore with Iceland.The Faroe Islands, though also Greenland,shares fishery stocks with close neigh-bours and exports of fish and fish productsform a large part of the economy of bothcountries. The Faroe Islands export of fishand fish products represents approx. 90%of total exports and for Greenland, approx.85% of total exports.

The Greenland fishery industry is facing astructural challenge of adjustment, includ-ing the need of larger and more modernvessels and the need for future regulationof the industry in relation to ownership pro-visions and access to capital. This restruc-turing process will also cause an outflowof labour to other industries and makedemands on social policy. Greenlands Self-Government has initiated a project concern-ing the consequences of climate change onthe fishing and hunting industry with a view

to identifying opportunities for adaptationthat manage the challenges while exploit-ing new opportunities. The adaptationof industry and retraining initiatives in forexample the fisheries industry, might beone element of a new phase of partnershipbetween Greenland and Europe.

A key element in fishery management iscontrol and enforcement. Control opera-

tions are undertaken by the Greenlandand Faroese authorities who monitor thatboth Greenland and Faroese, and relevantinternational fishery regulations are com-plied with by all vessels in their respectivewaters, as well as by Greenland and Faro-ese vessels operating internationally. Theinspection of vessels and catches at seais undertaken by the Danish Armed Forcesand the Faroe Islands Fisheries InspectionFiskiveiieftirliti. Furthermore, regionalcooperation on inspections remains apriority.

General increases of temperature in the

Arctic and rapid melting of ice can makenew areas of the Arctic Ocean potentiallyattractive for fishing. This presents newchallenges with regards to national andinternational regulation of these areasdue to insufficient data about them. Inaddition, illegal, unreported and unregu-lated fishing is a serious threat to marineecosystems which has considerable impli-cations for conservation and rational man-agement of marine resources. It is a hugetask for small communities with large eco-

systems to provide adequate expertise forthe management and control of fishery. Inthe Arctic, there is relatively limited knowl-edge of fish stocks and fishery opportuni-ties, which means that the precautionaryprinciple should be applied to protect theenvironment and fishery resources.

Hunting is an integral part of the Arcticcommunity and a sustainable exploita-tion of hunting resources is importantfor the local economy and for cultural

self-identity. The best possible basis fordecisions should be ensured in the exploi-tation of these resources nationally andinternationally. Similarly, it is essentialthat hunters have confidence in the basisfor decision-making so that limitationson hunting are observed. The Greenlandseal-hunting industry is currently underpressure partly because the European andNorth American markets for sealskin have



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3.4. STRONGER INTEGRATION

IN INTERNATIONAL TRADENew opportunities for economic develop-ment in the Arctic are leading to increasinginterest from international investors inthe area. The Government of Greenlandhas set itself clear targets to attract moreforeign investors, and to ensure thatthe exploitation of Greenlands naturalresources in the future will constitute amajor source of revenue for the Greenlandsociety. The new trading opportunities cancontribute to the diversification of Green-

lands economy and create the basis foreconomic sustainability and prosperity. Forthe Faroe Islands in particular, the open-ing of the Northeast Passage will unfoldnew opportunities as a result of increasednavigation. The Government of the Faroeshas decided to set up a working group toassess the Faroese strategic opportunitiesassociated with increased enterprise in theArctic and North Atlantic area.

The heightened international interest re-

quires the creation of attractive regulatoryframeworks for investments. Therefore,Greenland is working to conform to inter-national trade rules and obligations andcreate a healthy investment environment.This will not only strengthen Greenland asan attractive investment destination, butalso give Greenland more opportunitiesto penetrate new markets. By virtue ofthe Kingdom of Denmarks membership,Greenland and the Faeroe Islands comeunder the World Trade Organisation. Since

the end of 2005, Greenland has workedcontinuously to bring Greenland law intocompliance with WTO rules. Due to its OCTstatus (Overseas Countries and Territories)Greenland goods have duty-free access tothe EU. The Faroe Islands has duty-free ac-cess to the EU for the majority of its goodspursuant to an agreement on mutual tariffexemption in 1991, renewed in 1996. Faroetrade with the EFTA countries, Norway and

Switzerland (and Liechtenstein), is covered

by free trade agreements concluded in theearly 1990s. As regards Iceland, the FaroeIslands entered into a more comprehen-sive economic cooperation agreement in2005 (Hoyvk Agreement).

Many Arctic regions are favourably lo-cated in relation to the worlds two larg-est markets (the EU and U.S.), especiallyGreenland. The opportunities for a closerassociation to the surrounding marketsmust gradually be expanded as the extent

of sea ice decreases. Trading requires infra-structure, and it is essential that the infra-structure be developed to support growingtrade. In Greenland, the TransportationCommission has analysed the futureneeds for adapting the infrastructure andits recommendations of April 2011 willform a weighty element in the basis for de-cisions on the development of Greenlandsinfrastructure.

WHALING

Denmark is in a rather unique situa-tion when it comes to whaling, sincethe Kingdoms three parts - Denmark,the Faroe Islands and Greenland - eachhave their own whaling policy. This par-ticular situation is similar to the U.S. andRussia, which also distinguish betweenpopulation groups that rely on whalingand the rest of the territory. The FaroeIslands and Greenlands maritime policyis based on the principle of being ableto live off marine resources in a sustain-

able way, whether it be fish, seals orwhales. Each part of the Danish Realmis empowered to regulate the exploita-tion of whale resources in their own wa-ters - though some whale species aresubject to decisions to which the King-

dom is bound under the framework of theInternational Whaling Commission (IWC).The entire Danish Realm is thus bound bythe IWCs current ban on commercial hunt-ing of large whales.

In the Faroe Islands and in Greenland thereis general support for a principled policyand the political priority is to ensure thepopulations right to hunt. In the Danishpart of the realm, many people are fun-damentally hesitant about whaling and

whaling is not practised in Danish waters,although there is understanding for the sit-uation of Greenland and the Faroe Islands.In Danish waters, EU rules apply, i.e. a totalban on whaling. In Greenland, the huntingof small as well as large whales is oper-

ated in connection to the societys foodsupply. Large whales are covered by theIWCs regulatory powers. As a memberof the IWC, the Kingdom therefore seeks,at intervals, to obtain backing in the IWCfor quotas of relevant species of whalesin Greenland. The Faroe Islands has previ-ously operated commercial hunting oflarge whales, but has for many years onlyoperated non-commercial hunting ofsmall whales, mostly pilot whales, whichare not subject to the IWC. The Faroe

Islands, however, continues to see sus-tainable commercial whaling as a rightand supports the right of other nations inthis respect.



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Photo: Fernando Ugarte, april 2011 / Polar bear sedated for research purposes


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A close collaboration with the businesscommunity must be ensured regardingthe increased opportunities in the Arc-tic. The markets for Greenland and Faro-ese export goods are to be expanded,and internal and external barriers toexports removed.

Inside the Kingdoms individual customsterritories, the closest possible align-ment must be ensured with interna-tional trade regulations and obligations,in particular the WTOs regulations.

Cooperation must be strengthened

concerning Greenland adaptation, asdeemed appropriate, to the bilateraltrade agreements which Denmark en-ters into via the EU, and the Kingdomwill work to maintain - and whereverpossible expand - preferential access forproducts from Greenland and the FaroeIslands in the EU and third countries,including entering into agreements onreciprocal free trade between the FaroeIslands and new third countries.

Trade relations with the outside worldmust be managed through an ongoinginfrastructure development.

3.5. KNOWLEDGE-BASED

GROWTH AND DEVELOPMENT

Greenland now plays a prominent role in in-ternational research because of the uniqueopportunities to study processes of globalimportance, including the planets geologi-cal history, natural climate variations and

global warming. Interest in Arctic researchhas been increasing rapidly in recent years,which has resulted in major national andinternational research programs and in-creased Arctic research funds from amongothers the Nordic Council of Ministersand the EU. Nordic, European and widerinternational research and educationalcooperation will also be given high priorityin the future.

Global warming affects the Arctic directly,including the Greenland ice sheet, sea iceand ocean currents, which in turn havefar-reaching implications for global climatetrends. Meanwhile, climate change alsohas direct consequences for the Arctic interms of changing circumstances for thefishing and hunting industry, the potentialfor mining and exploitation of hydrocarbonresources, and also navigational optionsfor tourism and transport.

Greenland offers so many unique oppor-tunities for research in nature, geography,biology as well as the interplay between

nature and humans. It is vital that researchinto and monitoring of the ice sheet andresearch on climate and environmentalprocesses in the Arctic are disseminatedand used internationally. It is also essentialthat research findings are of practical useby Arctic peoples in supporting the rapidcultural, social, economic and industrialdevelopment that other peoples havehad generations to adapt to. Therefore,Arctic research findings must clearly bepromoted to the benefit of the Arctic pop-

ulations, not least the Arctic indigenouspeoples. Here, social science and healthresearch will play a key role.

The Faroe Islands lies at the gateway tothe Arctic. Nearly 90% of the total oceanicheat transfer towards the Arctic flowsthrough this area, and the heat broughtinto the Arctic keeps large marine areasfree of ice and far warmer than they wouldotherwise have been. This is the basisfor the huge pelagic fish stocks that feed

in the area , keeping surrounding landmasses warmer than the global averageat this latitude. In the Arctic and subarcticoceans, the water cools and then mostsinks and returns to the worlds oceans asa cold deep-water current that transportscarbon dioxide, oxygen and heat from theatmosphere into the deep water masses,which are a prerequisite for all deep-waterfauna. This interconnected system of

ocean currents is essential to the rela-tionship between the oceans, the globalclimate and not least the Arctic, but it isdriven by sensitive mechanisms that caneasily be weakened as the Arctic warms.The international scientific communityhas put considerable resources into chart-ing patterns of ocean currents, followingtheir changes and working out methodsto predict their development and futureimpact on climate, living resources andhumans. The Kingdom will seek to play anactive and leading role in the continuationof this research effort.

There is a long tradition in the DanishRealm for Arctic research and close co-operation in meeting challenges. Danish,Greenland and Faroese universities, andresearch and scientific centres take part innumerous international research projectswithin a broad spectrum of paleoclimaticstudies, research into Arctic ecosystems,oceanography, glaciology, geophysics, geol-ogy, social sciences and health sciences,and similarly a number of monitoring pro-grams and Arctic research stations con-

duct an essential monitoring of climateimpacts on the Arctic.

In addition, a joint research initiative by theDanish-Greenland-Faroese ContinentalShelf Project provides data collection onthe seabed and opportunities for follow-upresearch in other fields.

Research into Arctic technology, whichmainly takes place at the Arctic Technol-ogy Centre in Sisimut West Greenland in

cooperation with the Technical Universityof Denmark (DTU), is another area with po-tential, including requirements for the useof renewable energy in power systems andthe development of Arctic infrastructure.

In 2009, the Ministry of Science and theGovernment of Greenland set up an in-terdisciplinary climate research centre inNuuk. The centre works in partnership with



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the Commission for Scientific Research inGreenland (KVUG), the Greenland Instituteof Natural Resources and the University ofGreenland. The centre focuses on basic re-search about the Arctic climate and the ef-fects of climate change including the needfor mitigation and adaptation strategies,and currently has approx. 80 Greenland,Danish and international researchers affili-ated on a permanent or flexible basis.

Nordic, European and wider internationalresearch and education cooperation is tobe given high priority. For example, Danishand Greenland researchers are participat-

ing in the top Nordic research initiative onclimate, environment and energy, whichis one of the Nordic Council of Ministersglobalization initiatives. The Kingdom alsosupports the running of the University ofthe Arctic - an association of circumpolaruniversities that offers a rich variety ofcourses relevant to Arctic students. Bilater-ally, education, language and research con-stitute key elements in Joint Committeecooperation between Greenland, Denmarkand the U.S. - and Greenland is increasingly

taking part in promising bilateral researchand education partnerships, as for exam-ple with Canada.

Research and education are closely con-nected - and must be tightly linked witheconomic and industrial development.For instance, in January 2011, the Govern-ment of Greenland set up a new mineralresources school by reorganising the Min-ing and Construction School in Sisimut.The mineral resources school will function

as a knowledge centre for the entire min-ing resource sector and develop trainingwithin the oil industry. The Governmentof Greenland also has ongoing initiativeswhere research is used for the trainingof the population. Among other things,a summer school in Kangerlussuaq hasbeen launched in cooperation with theUnited States under its auspices, whereforeign scholars teach pupils at secondary

level in scientific research topics. Finally, aspart of the existing partnership agreementwith the EU, Greenland receives about 25million Euros annually in budget supportfor the education sector, in particular tar-geting the special educational drive wherethe societal needs are greatest.

It will remain a key priority to support thefuture economic and social sustainabilitywith educational initiatives. Besides themineral resource sector, initiatives con-cerning new opportunities and challengesin the maritime sector will also be central.

The Kingdom will maintain its leadingposition internationally in a number ofresearch fields concerning the Arctic,and will promote national and interna-tional Arctic research.

The Kingdom will work to promote theparticipation of Danish, Greenland andFaroese academic and scientific insti-tutions in international research andmonitoring activities. This includes thequantification of global and regional

impacts of climate change in the Arctic,such as how Arctic ecosystems, seaice and ice sheets respond to climatechange and also the consequences andimportance of climate change for thepopulations and communities in andoutside the Arctic.

Research and monitoring in the Arcticputs a strain on resources and logisticsand therefore international cooperationon such projects must continue to be

encouraged, as well as pursuing flexibleadministration that facilitates access tothe regions and minimizes administra-tive burdens on projects.

Research in the Arctic must also help tosupport the cultural, social, economicand commercial development. Know-ledge and data must be built up evenmore, firmly embedded, and also used

in the Arctic where research partner-ships in for example natural resourcesand broader social science fields will beprioritized. The extensive research byforeign researchers must be dissemi-nated to a greater extent to relevantinstitutions and communities.

Within the Kingdom, cooperation be-tween research institutions must con-stantly be consolidated and developed,and researchers have to be familiar withavailable options for funding of Arcticresearch. Continuity and stability in theresearch environment must be assured,

for example, by the recruitment ofyoung researchers.

Greenland targets that by 2020, at least2 / 3 of school leavers will have gainedtraining leading to formal qualifica-tions, and the Government of Greenlandwill prioritise supplementary furthereducation as new requirements arise.In particular, the Self-Government willdevelop education and training in themineral resources area, so Greenland

will increasingly be able to offer relevantand qualified manpower in the offshoreand mineral industry.

Possibilities will be considered for closerinvolvement of Greenlands citizens inthe armed forces education and train-ing and tasks in the Arctic, includingcustomized programs in Greenland withemphasis on the maritime domain.

International training and exchange co-

operation will be a strategic priority forGreenland, particularly with the U.S. andCanada as well as the EU, where a newphase in the partnership could involvefurther adaptation to trade and industryand / or retraining initiatives.



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NEEM ICE CORE DRILLING

North Greenland Eemian Ice Drilling,NEEM (2007 - 2011) is an internationalresearch project coordinated by theCentre for Ice and Climate, a scientificresearch project at the Niels Bohr Insti-tute at Copenhagen University, funded

by the Danish National Research Foun-dation. The goal of NEEM drilling inNorthwestern Greenland is to retrievean ice core reaching back through thelast interglacial period, the Eemian,which ended about 115,000 years ago.The climate in Greenland was warmerduring the Eemian period than it is to-day, and is therefore considered as an

analogue for the future climate which isexpected to be warmer because of globalwarming. Ice cores from the Eemian periodmay thus contribute to understandingclimate dynamics in the future. Previousdrilling in other parts of the Greenland ice

sheet (e.g., DYE-3, GRIP, GRIP2 and NGRIP)have also aimed at acquiring knowledgeabout past climate changes, but none ofthe ice cores obtained from previous drillshave contained a complete uninterruptedseries of Eemian ice layers. On 27 July2010 NEEM reached bedrock at a depth of2537.36 m. The researchers expect thatthe lowest meter of the ice core will be rich

in DNA and pollen and thus be able togive insights into vegetation that existedin Greenland during the last interglacialperiod and perhaps earlier. Further analy-sis of the approx. 2.5 km-long ice corewill be undertaken by the Centre for Ice

and Climate in collaboration with interna-tional research groups.

INFORMATION A PREREQUISITE FOR PROGRESS - BUILDING UP OF GEOGRAPHICAL INFRASTRUCTURE

The establishment of a well-developedinfrastructure of geographical informa-tion is important for the developmentof the Arctic. Compiling geographicalinformation and obtaining a completepicture of what is happening at a givenlocation (maps, charts, records, etc.) isvery important to the carrying out of theauthorities activities and for peoplesaccess to information. The buildingup of a geographical infrastructureis based on the principles that data

must only be produced once and that alladditional data should be collected andmaintained and made available in themost effective manner. To manage this,the Greenland self-government has setup NunaGIS. The objective of NunaGIS isto gather all essential information acrossGreenland in a digital atlas, and link thisinformation to a data and organizationalinfrastructure, also called SDI (Spatial DataInfrastructure). Work is being done interna-tionally to establish a common geographi-

cal infrastructure for the entire Arcticregion by building an Arctic SDI where ba-sic topographical data from all the Arcticcountries can be assembled, displayedand linked with other information on theclimate, wildlife, vegetation etc.

TOPOGRAPHICAL MAPPING

There is an agreement between the Na-tional Survey and Cadastre (KMS) andGreenlands Self-Government to jointlyfind a method to establish data for thetopographical mapping of Greenland at1:100.000 and maintain these maps ina simple manner. Since it is a vast land

area to be covered, traditional methods

that have been used for mapping in Den-mark are in some cases are too costly, andtherefore new technologies for mapping,including use of satellite images, need tobe explored. There is also agreement be-tween Umhvrvisstovan (EnvironmentalOffice) in the Faroe Islands and KMS that

there must be an updating and moderniza-

tion of the topographical map, so thatnew data from the Faroese authoritiescan be combined with existing topo-graphical maps of the Faroe Islands.



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CLIMATE RESEARCH CENTRES COLLABORATION WITH CANADA

In 2010 Greenlands Climate ResearchCentre began collaborating with theUniversity of Manitoba, Canada wherethe head of the Climate Research Cen-tre was awarded the post of CanadaExcellence Research Chair in ArcticGeom

Kingdom of Denmark Strategy for the Arctic 2011– 2020.pdf

Documents

Transcript of Kingdom of Denmark Strategy for the Arctic 2011– 2020.pdf