Mineral & Energy Resources

The Arctic region, situated at the Earth’s northernmost extremity, comprises the Arctic Ocean and surrounding territories, spanning across several northern nations, including Canada, Russia, Norway, Sweden, Finland, Denmark (Greenland), Iceland, and the United States (Alaska). With climate change taking its toll and resulting in the disappearance of 95% of the Arctic’s oldest and thickest ice, the region has become a focal point in the geopolitical arena.

Increased Geopolitical Significance of Arctic Region and the Associated Reasons:

• Resource Exploration: The thawing of Arctic ice has facilitated access to previously inaccessible areas rich in a diverse range of resources, including oil, natural gas, minerals, and fish stocks. This newfound accessibility has attracted countries and corporations eager to secure their energy and resource supplies, intensifying the geopolitical competition. For instance,
  • The Arctic region boasts substantial deposits of coal, gypsum, diamonds, zinc, lead, placer gold, and quartz.
  • Greenland, a key Arctic territory, alone possesses approximately a quarter of the world’s rare earth reserves.
  • The Arctic is also home to a wealth of unexplored hydrocarbon resources, accounting for an estimated 30% of the world’s undiscovered natural gas. This vast energy potential has drawn significant interest from energy-hungry nations and companies.
• New Shipping Routes: The recession of Arctic ice has introduced more direct shipping routes, like the Northern Sea Route, connecting Europe and Asia, which are approximately 30% to 40% shorter than the routes utilizing the Suez Canal. This economic opportunity has sparked discussions about sovereignty and control over these routes, contributing to geopolitical considerations.
• Territorial Claims: Arctic nations, such as Russia, Canada, Denmark, and Norway, have asserted territorial claims in the region, and in some cases, overlapping claims have resulted in disputes and heightened geopolitical tensions. For instance, Canada and Denmark have been embroiled in a dispute over the ownership of Hans Island, a small yet resource-rich Arctic island.
• Military Presence: Several Arctic nations have strengthened their military presence in the region to safeguard their interests and assert sovereignty, a development that raises concerns about potential conflicts and intensifies geopolitical rivalries.
  • For example, Russia has undertaken the modernization of its Arctic military infrastructure, reopening Cold War-era bases, and deploying advanced weaponry, actions that have generated concerns about militarization and heightened tensions with NATO countries.
• Geopolitical Alliances: The Arctic Council, originally established as a platform for Arctic nations, has now become a pivotal arena for diplomatic discourse.
  • Non-Arctic nations like China and India have the observer status in the Council signaling their ambitions to extend influence, paralleling the escalating geopolitical prominence of the region.
  • Additionally, China’s 2018 Arctic policy, with its aim to be acknowledged as a “Near Arctic State,” epitomizes the evolving geopolitical landscape, aligning with the increased strategic value of the Arctic.
• Indigenous Rights: Approximately 4 million individuals inhabit the Arctic, with about 2 million of them being of Russian descent, and roughly 500,000 belonging to indigenous populations. Some of these indigenous communities, like the Inuit in Canada and the Sami in Norway within the Arctic, are actively advocating for their rights and interests, which contributes to the intricacy of the geopolitical situation. Their engagement plays a crucial role in shaping policies and choices concerning the region.
• Environmental Concerns: The evolving Arctic climate carries far-reaching global implications, influencing sea levels and weather patterns. Consequently, the environmental stability of the region assumes paramount importance for the overall global climate and security. As an illustration, Arctic sea ice serves as a vast reflective surface at the Earth’s northernmost point, deflecting a portion of the sun’s rays back into space, thereby contributing to the maintenance of a stable global temperature.

As the Arctic continues to undergo transformation, it becomes increasingly vital for nations to engage in cooperative diplomacy, manage disputes peacefully, and safeguard the delicate balance of this unique ecosystem. The future of the Arctic will not only shape global geopolitics but also impact the environment and livelihoods of those who call it home.