At a recent meeting of the Arctic Council the President of Iceland pointed out the many opportunities opening up in the Arctic as one of the few positive outcomes of global warming. The council, founded in 1996, brings together eight nations with land above the Arctic Circle – Canada, Denmark, Finland, Iceland, Norway, Russia, Sweden and the US.
Climate change has countries as far away as India also paying attention to the Arctic – and seeking observer status in the council. Melting polar ice is making mineral and oil resources easier to exploit, setting off a scramble for access. The US Geological Survey estimated in 2008 that some 22% of the world’s undiscovered oil and natural gas deposits were located above the Arctic Circle.
The warming climate also opens shipping routes that were once mostly inaccessible. The northern sea route would cut the distance between Shanghai and Europe by several thousands of miles, saving time and money.
China is courting Nordic countries, signing a trade agreement with Iceland and several commercial agreements with Denmark.
Greenland, a self-governing part of Denmark, is considering awarding mine exploration licenses to companies this year for a $2bn (£1.3bn) project north-east of the capital Nuuk.
One of those companies is London Mining, which would join a Chinese mining company in the project that could supply China with 15 million tonnes of iron ore a year.
China is one of 14 countries that have applied for observer status in the council, along with Japan, South Korea, India and others. Several European countries such as France and the Netherlands are already observers.
It is unclear whether the eight members will be able to reach a decision by the end of their meeting in Kiruna, which will also mark the transfer of the council chairmanship from Sweden to Canada for the next two years. The US takes over in 2015.
