Norway's Arctic Policy - Regjeringen.no

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norway's arctic policyCreating value, managing resources, confronting climate changeand fostering knowledge. Developments in the Arctic concern us all.

the arcticIntroductionChanging fast:In Bodø, newand traditionalindustries aredeveloping sideby side.Prime Minister Erna Solberga sustainable futureEvery time I visit North Norway, I am inspiredby the dynamism of the people and industries inthe region. I am confident that we will succeedin further developing North Norway and turningit into one of the most creative and sustainableregions of the country. We need to address keychallenges today to equip the High North to meetthe demands of the future.The Arctic as a region is defined by its naturalenvironment, its resources and its inhabitants.There is great potential for value creation inthe interplay between traditional industriesand modern technology. The Government’s aimis to assist the business sector in the region inrealising this potential by drawing on a soundknowledge base and a dynamic education andresearch community.The Arctic is Norway’s most important foreign policy priority. We play a leading role ininternational diplomacy in the Arctic and weare cooperating closely with other countries andorganisations on how best to develop the region.Our aim is to ensure that the Arctic continues tobe stable, peaceful and predictable. The changesin the security situation in Europe highlight theimportance of this approach to management inan area with such abundant natural resourcesbut at the same time a highly vulnerable naturalenvironment.The impacts of climate change are particularly marked in the Arctic. We are facing majorchallenges that can only be tackled by meansof knowledge, responsible management andinternational cooperation. At the same time,new opportunities are opening up. The meltingof the Arctic sea ice is likely to lead to an increasein maritime traffic between Europe and Asiathrough the Northeast Passage. The large oiland gas deposits that are thought to exist in theBarents Sea can help to meet the world’s growingenergy needs. The Arctic is a region where thereare long distances between economic centresand where weather conditions are harsh. Theincreasing human activity in this region meansthat infrastructure, environmental protection,02 // thethe arcticarcticemergency preparedness and response, andsearch and rescue services must all meet highstandards. The Government intends to deal withthese issues through responsible management.Norway has both interests and responsibilitiesin the Arctic. It is therefore essential that weplay an active role in the area both to protectour rights and to fulfil our obligations in theregion. The Norwegian Coast Guard has a particularly important role to play in this context.The Government will continue to ensure a highlevel of operational capability in the the north.//There is great potentialfor value creation in theinterplay between traditional industries andmodern technology.Our policy in the Arctic will build on the extensive efforts of previous governments. In thetime ahead, the Government will give priorityto the following five areas:International cooperationBusiness developmentKnowledge developmentInfrastructureEnvironmental protection and emergency preparednessWe intend to work hard to put our Arctic policyinto practice. You can read more about whatwe are doing, as well as what we have alreadyachieved, in this report.Please note: This English version of the reportis an extract and updated version of the Norwegian report «Nordkloden», that was launched inNovember 2014.norway's arctic policy \ 03

the arcticContentscontents03 A sustainable futurEIntroduction by Prime Minister Erna Solberg08 InternationalcooperationLooking to the northEffective international cooperation isincreasingly important as the Arcticbecomes more accessible.Government prioritiesNorway has important interests to safeguardin the north. The Government will givepriority to knowledge, business development and international cooperation.04 / the arctic20 A knowledge-basedbusiness sector33 More reliableinfrastructureGovernment prioritiesThere is great potential for growth in thenorth and the Government will promotethe development of a highly successful andflexible business sector.Government prioritiesThe Government will promote effectivetransport solutions designed to increase valuecreation, mobility, safety and cross-bordercooperation.26 Broad-basedknowledge development36 Better preparedness andenvironmental protectionGovernment prioritiesThe Government’s aim is for Norway to beleader in the field of knowledge in and aboutthe High North, and it will give high priorityto research and education.Government prioritiesThe Government will set high environmentalstandards, improve preparedness, enhance safetystandards, and maintain close cooperation withother countries, all of which are essential forsustainable economic activity.norway's arctic policy \ 05

norway’s arctic policyClear evidenceof climate changeIllustrated overview50% loss of ice cover inthe Barents Sea since1980. The Arctic Oceanmay be ice-free in the summer by2050. Temperatures in the Arcticare rising two to three times as fastas the global average.Effective monitoring2Norwegian satellites,AISSat-1 and AISSat-2,detect and track vesseltraffic in the north. The largestground station in the worldfor polar-orbiting satellites isin Svalbard. It downloads datafrom more than 80 satelliteson a daily basis.the arcticImportant for Norway, important for the world.Vulnerableenvironment3000polar bearslive aroundSvalbard and in the northernBarents Sea. The breedingpopulation of seabirds in thisarea totals 15 million, andthe walrus population in theSvalbard area is about 4000.LongyearbyenRising volumeof shippingVital internationalcooperation8KYSTVAKTHuge petroleum potentialMajor seafood industry1 000 00043Hammerfesttonne cod quota in the BarentsSea in 2013. High quotas in 2014and 2015 too.kirkenesMurmanskAltaTromsøYear-round tourism206% increasein the numberof overnightstays in winter by visitors fromabroad from the 2005/06season to the 2012/13 season.Strong focus on year-roundtourism.06 / the arcticBODØBusy crossborder traffic318 135FinlandSwedenAbundant mineral resources33% of undiscovered oil andgas resources on the Norwegian continental shelfare expected to lie in the Barents Sea.These resources are the basis for thepetroleum-related supply industryin North Norway.RussiaHarstadNarvikArctic states aremembers of the ArcticCouncil. 12 non-Arcticstates are observers. The ArcticCouncil is the only circumpolarforum for political discussionsat government level, and isattracting increasing attentionoutside the Arctic.% of turnover from the Norwegianmining and mineral industry is generated in North Norway and Svalbard.Extensive research3Norway is ranked no. 3in the world, after the USand Canada, in terms ofthe number of scientific publications in English on the Arctic.border crossings betweenNorway and Russia in 2014.Millions of people4million people live inthe Arctic. Nearly 10 %of Norway’s populationlive north of the Arctic Circle,a greater proportion than inany other country in the world.north66 33’elcricarcticnorway's arctic policy \ 07illustration Børge Bredenbekk / byhands80% of maritime trafficin the Arctic passesthrough Norwegianwaters. Maritime activity in thenorth is substantial, but onlya few ships transit the wholeNortheast Passage.

international cooperationInternational perspectiveATMOSPHERIC MEASUREMENTS:The Alomar Observatory on Andøyaduring lidar measurements. Thelaser pulses are used to studyconditions in the atmosphere.//It is in everyone’s interests that the Arcticremains a peaceful and stable region.Minister of Foreign Affairs Børge BrendeLooking to the northPhoto: Kolbjørn Blix Dahle, Andøya Space CenterForeign Minister Børge Brende standing at the heart of the area that isNorway’s most important foreign policy priority, well aware that manyother countries are also looking to the north, where new opportunitiesare opening up and important challenges need to be met.08 / the arcticnorway's arctic policy \ 09

international cooperationInternational perspective//UN leader in the Arctic:Secretary-General Ban Ki-moonvisited Svalbard in 2009 to seefor himself how the climate ischanging.It is no coincidence that countries such as China,South Korea and Japan have been queuing up tobe granted observer status in the Arctic Council.Minister of Foreign Affairs Børge BrendePhoto: ntb / scanpixT010 / the arcticop politicians including Hillary Clinton from the US, Laurent Fabius fromFrance and Salman Khurshid from India.Chair of the IPCC Rajendra K. Pachauri.UN Secretary-General Ban Ki-moon. We have seenthem all here, clearly impressed by the spectacularNorwegian landscape – snow-clad mountains, wideskies and deep waters. The climate is changingrapidly here. These prominent visitors have helped to put the Arctic on the map. They have alsohighlighted the global implications of climatechange and the importance of Norway’s role inmanaging the abundant resources in the sea andon land in the northernmost part of our planet.The Arctic is the Norwegian Government’s mostimportant foreign policy priority.But why are so many people interested in a regionthat in many ways is an inhospitable wilderness?Even in countries far away from the Arctic?– Access to energy resources and other naturalresources is becoming easier, and new trade routesare opening up in the north. All this is creatingnew opportunities.But at the same time the impacts of climatechange are particularly visible in the Arctic. Thisis creating major challenges that can only betackled with knowledge, responsible management and cooperation. This is why the Arctic isbecoming increasingly important internationally,’explains Minister of Foreign Affairs Børge Brende.“2015 will be an important year for the climate.Towards the end of the year, the world leaderswill meet in Paris with the aim of reaching a newclimate agreement. Norway is at the forefrontof efforts to limit global warming and we haveclear ambitions. If we are successful in Paris,the new agreement could prove to be the mostimportant agreement of our time, for the Arcticand for the world at large.”It is no coincidence that countries such as China,South Korea and Japan have been queuing up tobe granted observer status in the Arctic Council.All the Arctic countries have shown that they taketheir responsibilities seriously by developing andimplementing Arctic strategies. In a world fullof conflicts and competition for resources, theArctic stands out as a region where close peopleto-people cooperation and dialogue acrossnational borders is the norm,’ Mr Brende adds.factsThe Lawof the Sea200The Convention on theLaw of the Sea allows acoastal state to establish a200-nautical mile exclusiveeconomic zone. It has sovereign rights over marineresources in this zone.All coastal states have acontinental shelf extending200 nautical miles fromtheir baselines. However, inmany cases the continentalshelf extends beyond this,for example in the case ofthe coastal states borderingthe Arctic Ocean. Norwayhas already submitted documentation on the extentof its continental shelf beyond the 200-mile limit.1750The maritime delimitation line agreed betweenNorway and Russia in 2010stretches for 1 750 kilometres. All the coastal statesbordering the Arctic Oceanhave undertaken to resolvemaritime delimitationissues in accordance withthe Law of the Sea.Peace and the Law of the SeaOn the subject of security policy and good neighbourly relations: there is no hiding the fact thatRussia’s actions in Ukraine are affecting relationsbetween Russia and the rest of Europe. How is thesituation influencing relations between Norwayand Russia?– Together with the rest of Europe and our otherallies, we are standing firm in defence of international law and international rules in the faceof Russia’s conduct in Ukraine. This approachis also important in the context of the Arctic.Respect for international law and internationalcooperation are crucial for promoting stability andpredictability in the north. These fundamental valueswill always be at the core of Norway’s efforts. At thesame time, we intend to continue cooperation withRussia in areas where we have common interests. Itis in everyone’s interests that the Arctic remains apeaceful and stable region, Mr Brende says.Mr Brende points out that the Law of the Seaprovides vital guidelines for continued peacefulcoexistence in the north. It is essential for Norwayto take a clear and firm approach to upholding itsrights and fulfilling its duties in maritime areas under its jurisdiction in the north. Norway has jurisdiction over huge areas of sea, and the NorwegianArmed Forces play a key role in monitoring andprotecting these areas.Targeted cooperation with Russia has led toimproved maritime safety, higher cod quotas andaction to reduce the risk of radioactive pollution.Norwegians and Russians living in the border area,in and around the towns of Kirkenes and Nikel, cannow obtain local border traffic permits, which makesit easier for them to cross the border between thetwo countries. Since the scheme was introduced in2012, permits have been issued to 1 749 Norwegians and 3 547 Russians. ‘These are all examples ofimportant areas of cooperation with Russia that wewish to maintain,’ says Mr Brende.Barents cooperation vitalRussia is by no means the only country Norwaycooperates with in the north. Since 1993, theBarents cooperation between the five Nordiccountries, Russia and the EU has been promoting peaceful and sustainable development inthe Barents region. The need to ensure politicalstability over time and reduce possible tensionsnorway's arctic policy \ 011

international cooperationIntensely engaged in the debate:Foreign Minister Børge Brende at ameeting with key stakeholders fromNordland county in Bodø in August 2014,where the Arctic was on the agenda.International perspective//We are normalising people-to-people contacts. Thisgives us all a sense of safety and security.Pia Svensgaard, head of the Norwegian Barents Secretariatwas what inspired these countries to sit down atthe same table.Over 20 years later, the new head of theNorwegian Barents Secretariat, which is nowpermanently based in Kirkenes, views her jobas more important than ever.– The Barents cooperation is all about takingan east–west approach, not just a north–southone, says Pia Svensgaard.She emphasises the importance of peopleto-people projects in particular. This couldmean a school class from Finnmark visitinga school in Murmansk. Or young IT entrepreneurs benefiting from working on joint projectswith Russian partners. At a more general level,An east-west approach: The new head of thethe Barents cooperation deals with areas suchNorwegian Barents Secretariat, Pia Svensgaard,intends to maintain the close regional cooperationas transport and infrastructure, health and thein the north, particularly people-to-people projects.environment, business and culture.The Barents cooperation was initiated in response to changes in the political landscape, is to be based in Tromsø.which made closer cooperation between the– Although various actors may have legitimateeight Arctic states possible.but conflicting interests in the north, there is norace for the Arctic or for the resources in the re‘Everyone’ wants to take part in gion. The UN Convention on the Law of the Seaapplies to the Arctic seas just as it does to otherthe Arctic CouncilThe Arctic Council was established in 1996 as parts of the world. Most of the natural resourcesa forum for environmental cooperation. Since that the Arctic is thought to hold are within states’then, it has developed into the most important exclusive economic zones. There are very fewarena for dealing with the common challenges unresolved issues relating to jurisdiction in thefacing the eight Arctic states – and the rest of Arctic, states comply with the Convention on thethe world – in the Arctic. The members of the Law of the Sea, and the Arctic coastal states haveCouncil are the five Nordic countries plus committed themselves to the orderly settlementCanada, Russia and the US. In addition, Fran- of any overlapping claims. The main challengesce, India, Italy, Japan, China, the Netherlands, in the Arctic relate to other concerns, such as cliPoland, Singapore, Spain, the UK, South Korea mate change and environmental issues, growingand Germany have all been granted observer traffic along new sailing routes, the expansionstatus. The EU has been admitted as obser- of tourism, and greater oil and gas activity. Thisver in principle and participates in the Arctic increase in activity levels is explained by the grocooperation.wing demand for energy and raw materials andBusiness interests are moving higher up the the fact that the region is becoming more accesCouncil’s agenda, and a separate business forum, sible as the sea ice melts, Mr Brende points out.the Arctic Economic Council, was established inautumn 2014. Its aim is to provide a platform A region of opportunitiesfor dialogue and cooperation between the Arctic Foreign Minister Brende considers it importantCouncil and the business sector. Its secretariat that the Government promotes sustainable bu012 / the arcticfactsThe Arctic Council1996Establishment of the Council,the only international cooperation forum to include all theArctic states. Main focus onsustainable development andenvironmental protection inthe Arctic.8Member states: Canada,Denmark (including Greenland and the Faroe Islands),Finland, Iceland, Norway,Russia, Sweden and the US.6Permanent participantsrepresenting indigenouspeoples, and 12 observercountries.The Barentscooperation1993Signing of the KirkenesDeclaration on Cooperation inthe Barents Euro-Arctic Region. Aim is to secure peaceand stability in the Arctic.7 members at intergovernmental level: BarentsEuro-Arctic Council includesDenmark, Finland, Iceland,Norway, Russia, Sweden andthe European Commission. 9observer states in addition.13 members at regionallevel plus a representativeof the region’s indigenouspeoples in the BarentsRegional Council.norway's arctic policy \ 013

international cooperationInternational perspective//What is the globalsignificance of the Arctic?Norway should continue to play the constructive role inthe Arctic it already does: hosting and funding scientificand policy research into the High North.John Kerry,US Secretary of StateJames Astill, Political Editor of The Economistsiness development in the north. – We can pride ourselves on the good results we have achieved so far, but now, more than ever, it is crucialthat we turn good results into lasting progress.Our aim must be for North Norway to becomeone of the most innovative and knowledgedriven regions of growth in the world. And thisis possible. Space technology and research is onearea in which the region is already a world leader. The space research cluster made up of research centres in Svalbard, Tromsø, Narvik andon Andøya is Norway’s answer to Silicon Valley.My aim is to promote a results-oriented Arcticpolicy that fosters more “Silicon Valleys” withmore knowledge-based enterprises in the north,Mr Brende says.He emphasises the fact that the Government willtarget its efforts towards industries with growthpotential. Priority areas will include the oil andgas industry and the related supply industry, themaritime sector, the seafood industry, the mineralindustry, tourism and space technology. ‘The oiland gas sector is a mainstay of economic activityin the north, and offers unique opportunities forvalue creation, employment and growth, and forgenerating other positive spin-off effects in NorthNorway,’ Mr Brende remarks.How do you view the global energy situation?– With the Arctic becoming more accessible, wewill be able to produce more energy, which theworld needs. Some 1.3 billion people still do not

Council is the only circumpolar forum for political discussions at government level, and is attracting increasing attention outside the Arctic. 4millions of people million people live in the Arctic. Nearly 10 % of Norway’s population live north of the Arctic Circle,y a greater proportion than in any other c

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