Greenland’s national debate about independence will consider negotiating better terms in its relationship with Denmark and securing more significant investment from the EU.
As it faces a push for a takeover by US President Donald Trump, Greenland’s pro-independence leaders are being forced to seriously consider the implications of no longer being attached to Denmark at a time of serious geopolitical peril.
“Indeed, we are talking about independence, but what does independence mean? No one is truly independent,” said Maliina Abelsen, chair of Greenland’s largest company, Royal Greenland — a state-owned fishing company that represents over 95% of Greenland’s exports.
Between its reserves of critical minerals including graphite, rare earths, nickel, and gold, its supply of natural gas, and an Arctic location that serves as a gateway for Russian vessels and nuclear submarines, Greenland is increasingly vital for European and US economic and military security.
Given the competition, Abelsen said Greenland needs to ensure that future investment allows the national government input into regulation, rather than offering outside corporations a free-for-all.
The EU opened a consulate in Nuuk last year with the objective of improving investment. But mining for Greenland’s natural wealth demands long-term investment, thus carrying a risk that some exploitation projects won’t yield the desired return, and many companies say the EU is unduly slow and has historically been reluctant to make any substantial investments.
Open for business
“The EU has been looking towards Greenland for years for critical minerals, and they’ve brought the EIB into Greenland to take a look, but we see only very few projects where the EIB is actively engaged,” said Bent Olsvig Jensen, Managing Director of Lumina Sustainable Materials.
“Certainly, none in the last few years.”
According to Olsvig-Jensen, part of the problem is the EIB’s strict investment rules, which he said leave opportunities open for others, such as China or the US, to exploit.
“The EIB can engage when the project becomes commercial, and basically, none has made it that far except for us.”
From 2011 to 2016, Olsvig-Jensen was the CEO of companies such as True North Gems Greenland, which originally obtained the exploitation license for the Ruby Mine.
“If the EU want to position themselves in Greenland, they need to act faster,” he told Euronews. @Greenland is not closed to business; on the contrary, we are open.”
“Greenland would like the EU to invest more money. It’s obvious we don’t have the economic power to do that, so we need much more investment, and with partners we can work with.”
He said the EU needs to change its view of investment opportunities, particularly given Greenland’s geostrategic importance.
“The Chinese look generations ahead; they’re going around and bidding on everything. They invested in a Uranium license in which they are a minority investor, which they can now grow in the coming years,” he explained.
“The EU needs to think the same way, but they expect a return within five years. They don’t see it as a long-term investment to stop others coming in. They should think about it through that lens,” he said.
ADVERTISEMENTThe great melt
Hydropower is another developing renewable energy source in Greenland, thanks to the melting ice caps caused by global warming.
“The ice cap is melting faster than anticipated, so this potential is probably bigger,” the CEO of NunaGreen Renewable energy company, Aviaaja Karlshoj Knudsen, told Euronews. “We see a great opportunity to develop a new energy sector here in Greenland based on renewables and hydropower.”
“It’s very important that we know and work with partners that we have trust in and that Greenlanders can have control of.”
Stine Boss, Danish MEP for the Renew group, said the EU could do better to support Greenland in achieving its potential.
ADVERTISEMENT“With the European Union, the initiatives that have been done regarding education and support in the clean energy sector show we are serious. And indeed, there is also money on the table, but also I think that we can do better,” she told Euronews.
She was one of several Renew MEPs who met with academics, politicians, and industry, as well as the US and EU consulates in Greenland, to determine how the EU can make a more significant contribution to Nuuk.
She admits many in Europe and Denmark hoped Trump’s overtures will “pass”.
”I think this has been a delicate situation, and I do very well understand that. You can also see from the Danish government, from the starting point, people were saying, okay, let’s just see, you know, it might pass away, which has not happened. In fact, ‘the vocals have become louder’ from the US.”
ADVERTISEMENTUnder the terms of a defence agreement with Denmark, the US already has a strong military foothold in the northwest of Greenland.
Danish Prime Minister Mette Frederiksen said the US could negotiate a stronger footprint in Greenland, particularly if the goal is to secure the region from Russian and Chinese threats.
“I totally agree with the Americans that the High North, that the Arctic region is becoming more and more important when we are talking about defence and security and deterrence,” said Fredericksen at an EU summit on Monday.
