Arctic Regional Cooperation, Arctic Tourism Conflicts and Arctic Investments

Dear readers,

I am so happy and humbled to celebrate the first anniversary of this newsletter, Arctic Highlights, with you. One year ago, I started this journey to share my thoughts and analysis on current discussions in the Arctic. It has been an incredible experience, and I am thrilled to see our community grow to just under 1,000 enthusiastic individuals who share a passion for the Arctic.

I would appreciate your support as I continue to create and share content. Please share this newsletter with your network and become more actively involved in the discussions and comments. By doing so, we can reach beyond the Arctic bubble and strengthen awareness of the Arctic’s importance!

Yours,

Alexandra

Regional Cooperation and Security in the Warming Arctic

Maria Varteressian , the Deputy Minister of Foreign Affairs for Norway, delivered a speech on the Arctic at the Arctic Frontiers event in Oulu that addressed several key issues facing the region. She emphasized the changing geopolitical landscape and its impact on the Arctic, highlighting the rivalry between the United States and China and the war in Ukraine as significant factors.

She also discussed the urgent need to address climate change in the Arctic, which is experiencing more rapid warming than the rest of the world. She stressed the importance of developing climate-adapted infrastructure and reducing emissions to mitigate the negative impacts of climate change.

Competition and conflict are also emerging as major challenges in the Arctic. The geopolitical tensions between various countries, including the United States and China, have significant implications for the region. She emphasized the need for a strategic response to these challenges to ensure stability and security.

Security and cooperation are essential for the Arctic. Varteressian stressed the importance of NATO and the need for creative thinking to ensure security in the region. Both civil and military dimensions of security must be addressed to protect the Arctic effectively.

The Deputy Minister of Foreign Affairs for Norway advocated for increased cooperation at regional, local, and national levels to build resilient and prosperous societies. Strengthening bonds across Northern Finland, Northern Sweden, and Northern Norway is crucial for regional success.

Norway, as an Arctic nation, has a significant stake in the region's future. She described the strategic importance of the High North for Norway and the upcoming white paper on civil preparedness and total defense. This policy aims to create a coherent and holistic approach to the northern areas.

Finally, she addressed the trend of de-globalization and the increased importance of regional actions and cooperation. In an era where regions matter more, the actions taken in the Arctic have a significant impact. (Watch the stream here )

NASA Engineers Develop Underwater Robots for Polar Ice Exploration

Engineers from NASA’s Jet Propulsion Laboratory (JPL) are developing underwater robots to explore beneath polar ice, as part of the IceNode project. This initiative aims to help scientists understand ice melt rates and their impact on sea level rise. The project is crucial because if the Antarctic ice sheet melts completely, it could raise global sea levels by approximately 200 feet (60 meters). Ian Fenty, JPL climate scientist and IceNode lead, stated, “The goal is to get data directly at the ice-ocean boundary under the ice shelf.”

The robots, designed to operate autonomously, will be deployed under ice shelves to measure how quickly warm, salty ocean water melts the ice and how cold, fresh meltwater descends. Paul Glick, JPL robotics engineer and IceNode principal investigator, explained, “These robots are a platform for delivering scientific instruments to the most inaccessible places on Earth.” The robots are about 8 feet (2.4 meters) long and 10 inches (25 centimeters) in diameter, with a three-legged landing gear to attach to the ice’s underside.

The recent test in the Beaufort Sea, north of Alaska, was part of the U.S. Navy’s Arctic Submarine Laboratory’s two-year ice camp. The test involved lowering the robot through a hole in the ice to a depth of about 330 feet (100 meters) to collect data on salinity, temperature, and currents. This test was a significant step towards the project’s ultimate goal of deploying a fleet of autonomous robots under Antarctic ice shelves to gather valuable data for climate models.

The IceNode project represents a significant advancement in our ability to study and understand the polar regions, which are critical to predicting future sea level rise and its global impacts. The data collected by these robots will help scientists improve their models and make more accurate predictions about the future of our planet’s ice sheets and sea levels. (Read more: here)

Call for Change in Russian Arctic Strategy: Expert Criticizes Current Approach

Mikhail Grigoryev, head of the consulting center “Gekon” and a member of the Scientific Council under the Security Council of the Russian Federation, criticizes the current strategy for Arctic development. He highlights that many large projects in the north of Russia critically depend on logistics. Grigoryev points out that the volume of cargo transported via the Northern Sea Route (NSR) in 2024 is expected to be 38-40 million tons, significantly less than the planned 90 million tons. He attributes this shortfall to the slowdown in project construction and the lack of Arctic-class ships, specifically the Arc7 ice-class vessels.

Grigoryev emphasizes the need to adjust development plans to reflect new realities and the capabilities of building the necessary fleet. He states, “The main task is to adjust the development plans of the main cargo-forming projects, taking into account the new realities, primarily the possibilities of building cargo and port fleets.”

He also addresses the issue of year-round navigation on the NSR, noting that it is hindered by the absence of the Arc7 ice-class gas carriers. He explains, “The start of year-round navigation in the eastern sector of the NSR in 2024 was associated only with the expected, but not realized, deliveries of Arc7 ice-class gas carriers.”

Grigoryev further discusses the role of mining companies in the NSR traffic and the challenges faced by projects like the “Baimskaya” project in Chukotka due to the withdrawal of Chinese company Wison New Energies. He also mentions the strategic partnership with China in the Arctic, despite some challenges, and the need for a unified management structure for the NSR.

In conclusion, Grigoryev calls for a comprehensive review and adjustment of the Arctic development strategy and related strategic planning documents to ensure sustainable and efficient development of the region. (Source: here )

BRICS Countries Discuss Arctic Shipping Safety at Moscow Forum

Representatives of BRICS countries discussed Arctic shipping safety at the International Municipal Forum in Moscow, held on?August 27-28, 2024. Alexander Naumenko from the Marine Rescue Service emphasized the importance of managing ice operations and developing common standards to reduce risks. The forum included?5,000 participants?and?700 speakers?from?126 countries. Coordination efforts to prevent pollution and preserve the Arctic ecosystem were highlighted. The event was supported by the Presidential Administration and the Russian Ministry of Foreign Affairs. The discussions focused on innovative solutions, modern technologies, and experience exchange among BRICS countries . (Source: here)

Tourism Boom in Rovaniemi Sparks Conflict Between Industry and Local Population

In Rovaniemi, a protest took place against short-term rentals in residential buildings, highlighting the ongoing debate over the impact of tourism on the city’s housing market. The increase in tourism has led to a rise in short-term rentals, with approximately one-third of Rovaniemi’s nearly one million overnight stays being in short-term rentals. This has become a significant business, with some properties being rented exclusively for this purpose.

Opponents argue that short-term rentals cause disturbances, insecurity, and shift business risks to housing associations. A dedicated association, along with a network of around 70 housing associations, organized the protest.

The current legislation is outdated and does not adequately address short-term rentals. The Ministry of the Environment proposed a new clause in the building law to allow municipalities to ban small-scale short-term rentals unless the property is owner-occupied. However, this proposal is still under review, and changes are not expected soon.

Tarik Ahsanullah, Legal Affairs Director of the Finnish Landlords Association, believes that a complete ban on short-term rentals is unlikely due to constitutional issues, such as property rights protection. He also notes that banning short-term rentals would decrease property values in Rovaniemi.

Visit Rovaniemi predicts that during peak weeks of the upcoming winter season, 6,000 to 9,000 tourists will need accommodation daily, while the city has only 5,000 to 6,000 registered beds. Without short-term rentals, it would be impossible to accommodate all tourists, affecting the local economy, employment, and the city’s vitality. The upcoming season is expected to bring over 500 million euros in revenue, with tourism employment rising to 6,030 person-years.

The protest underscores the need for updated legislation and a balanced approach to managing tourism and housing in Rovaniemi. Solutions could include clearer regulations, better enforcement, and finding a middle ground that supports both residents and the tourism industry. (Source: here )

Arctic Potential: Investments and Regional Development

Researcher Andrei Mineev and I, as part of the Business Index North project, delivered a keynote speech at the Arctic Frontiers conference. Our speech focused on investment and business opportunities in the northern part of the Arctic. We provided historical investment data for the northern regions of Finland, Sweden, and Norway, highlighting key sectors such as manufacturing, mining, and aquaculture.

We identified four critical factors for future development:?people, renewable energy, connectivity, and knowledge. Addressing these factors is essential for the region’s growth and sustainability.

We also discussed demographic challenges, noting population decline and migration trends. We emphasized the need for policies to attract new talent to the region.

In terms of renewable energy, we highlighted the high percentage of renewable energy production in the northern regions. However, we pointed out the need to address bottlenecks in power grids to fully utilize this potential.

The importance of a knowledge economy was another key point. We discussed the role of innovative microclusters and strong universities in driving business development and reducing dependence on traditional industries.

As usual, I wish you a great weekend!

Yours,

Alexandra Middleton