Opinion | Europe moves to join China and US in Arctic gold rush

In recent decades, Greenland, which has a population of less than 60,000 people, has largely become an autonomous territory of Denmark. These days, Denmark, one of the 27 member states of the European Union and a member of NATO, the transatlantic security alliance, retains sole control over the country’s financial policy and foreign relations.

Nevertheless, the United States soon reopened a consulate on the island in 2020. The United States has had military assets on the island since World War II, including the Pitufik space base, built in 1951 as Thule Air Base and equipped with ballistic missiles. Early warning systems and satellite tracking.

China also expressed interest in building an airport and mining facility in Greenland in the 2010s, but ultimately withdrew its bid. Beijing’s interest in the region is related, in part, to the development of trade through the new North Atlantic sea route, which is opening up due to melting ice sheets. These could significantly reduce voyage times compared to the current reliance on the Suez and Panama Canals for maritime trade and transportation around the world.

Given the interests of the United States and China in Greenland, it is not surprising that the EU is also increasing its profile. The 27-nation bloc is particularly wary of the island’s vast natural resources, including coal, zinc, iron ore and rare earths. Europe tends to lack access to both raw material supplies and processing, and is seeking to reduce its dependence on China, which has a monopoly on the production of rare earths and other critical minerals.

To this end, the EU and Greenland signed a Memorandum of Understanding last November on a strategic partnership to develop value chains for sustainable raw materials needed for the transition to low-carbon energy. More than two-thirds of the 34 critical raw materials identified by the European Commission as being of strategic importance for the region’s industry and green transition are located in Greenland.

China is moving upstream in the rare earth value chain.Western countries are trying to catch up

As part of the EU’s Global Gateway Strategy, Brussels recently established similar strategic partnerships for raw materials with Ukraine, Kazakhstan, Namibia, Argentina, Chile, Zambia and the Democratic Republic of Congo. This partnership will enable trade and investment in safe, sustainable and resilient raw materials value chains, key to achieving the transition to a climate-neutral and digital economy.

Brussels places great importance on deepening ties with Greenland, and last Friday, European Commission President Ursula von der Leyen, with Frederiksen in attendance, opened the EU’s first Arctic office in Brussels. The visit also included a stop in the Faroe Islands, another autonomous territory of the Kingdom of Denmark.

The EU-Greenland memorandum could develop into one of the EU’s green alliances, similar to agreements with Canada, Norway and Japan. This will contribute to the development of sustainable projects along the raw material value chain and the deployment of the infrastructure necessary for their development.

The MoU establishes particularly close cooperation between Greenland and the EU in five areas, including the economic and industrial integration of the value chain of critical raw materials and other raw materials. This includes co-developing projects, creating and promoting new business models, attracting investment, supporting access to finance, promoting trade linkages, and developing and integrating support for economic diversification.

Von der Leyen’s visit could therefore help strengthen the new EU-Greenland MOU and provide a major boost to relations. With world powers’ growing interest in the Arctic, the region is keen to double down on ties, not only to seize the new economic opportunities at hand, but also to enhance the EU’s geopolitical position in the region. be.

Andrew Hammond is an Associate at LSE IDEAS (Centre for International Affairs, Diplomacy and Strategy) at the London School of Economics and Political Science.