Green Transition, Arctic Investments, Urban Arctic and Fulbright Arctic Initiative

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Northvolt’s Financial Crisis: A Setback to Sweden’s Green Transition

Northvolt, the prominent battery manufacturer, is teetering on the brink of bankruptcy. The company may not even be able to pay its employees’ salaries.

On Friday, Northvolt announced the suspension of all payment operations and employee travel. This announcement affects all parts of the company, including the factory in Skellefte?, Sweden, as well as operations in Poland, Germany, and Canada.

A crisis atmosphere prevails at the Skellefte? factory, according to an employee speaking to Norran newspaper. There is currently no certainty that the company can pay its employees’ wages.

Earlier this week, it was reported that layoffs aimed at reducing staff would begin at the factory, according to Swedish public broadcaster SVT.

Northvolt’s difficulties stem from a decline in demand for electric vehicles, rising costs, and production issues.

Impact on Local Population in Sweden :

1) The Skellefte? factory employs approximately 3,000 people.

2) The factory’s establishment led to the largest population increase in Skellefte? in half a century, making it one of the fastest-growing cities in Sweden.

3) The potential bankruptcy would have a significant impact on the local economy, affecting not only the employees but also the construction and supplier roles that were created as a result of the factory.

Green Transition:

1) Northvolt was seen as a success story of Sweden’s green transition, contributing to the country’s ambitious sustainability goals.

2) The factory’s financial troubles highlight the challenges and risks associated with the green transition, especially in the face of fluctuating market demands and rising costs.

Urban Shrinkage in the Russian Arctic: A Comprehensive Analysis

The Russian Arctic is now grappling with a significant demographic challenge: urban shrinkage. An investigation by the Institute of Territorial Planning (ITP) and Urbanica, a consulting firm, sheds light on the factors driving urban shrinkage in four Russian Arctic regions: Arkhangelsk and Murmansk Oblasts, Yamalo-Nenets Autonomous Okrug, and Krasnoyarsk Krai. The study analyzed the correlation between city size and the availability of various functions such as:

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The researchers found that while population trends varied across regions, the availability of essential services, particularly shops, schools, and hospitals, was strongly correlated with population size. Cities with a more robust provision of these services tended to retain or attract residents. In contrast, cities lacking these amenities often experienced population decline.

The study also highlighted the impact of agglomerations and large businesses. Cities located within agglomerations or with the presence of major corporations were more likely to retain or attract population due to the increased economic opportunities and amenities they offer.

The historical context of Arctic city development is crucial to understanding the current challenges. During the Soviet era, many Arctic cities were established as industrial centers, often focused on resource extraction. These cities relied heavily on a steady influx of workers and a constant supply of resources. However, with the collapse of the Soviet Union and the subsequent transition to a market economy, many of these industries became less profitable or were entirely phased out.

The decline of these industries led to job losses and a loss of residents from Arctic cities. The withdrawal of state subsidies and the closure of many enterprises further exacerbated these challenges. Additionally, changes in lifestyle preferences and rising living costs contributed to the decline of these cities.

Despite these challenges, the Arctic remains a strategically important region, rich in natural resources. Arctic cities continue to play a vital role as logistical hubs for resource extraction and as service centers for the region's population. However, to ensure their long-term sustainability, these cities must diversify their economies and attract new industries. By understanding the factors driving urban shrinkage in the Russian Arctic, policymakers and regional planners can develop more effective strategies to address these challenges. This may involve investing in infrastructure, promoting economic diversification, and improving the quality of life for residents.

Svalbard Seed Vault

Naomi Oreskes, a renowned historian of science and professor at Harvard University, published the article, titled "The Arctic Seed Vault Shows the Flawed Logic of Climate Adaptation," exploring the limitations of climate adaptation efforts, particularly as exemplified by the Svalbard Global Seed Vault.

The Svalbard Global Seed Vault, located in Svalbard, Norway, is a climate-adapted facility designed to protect over 1.3 million seeds from various food crops. The vault is refrigerated to -0.4 degrees Fahrenheit and is intended to withstand a magnitude 10 earthquake. However, in 2017, the vault experienced a flood caused by melting permafrost, highlighting the vulnerability of even climate-adapted infrastructure to the effects of climate change.

The vault's focus on seeds also neglects important food crops like cassava, which are not typically propagated through seeds. Additionally, the vault's maintenance is expensive, costing €1 million annually. The author argues that the vault's focus on adaptation rather than prevention is flawed, as it assumes that we can accurately predict and plan for the future.

Instead, the author suggests that we should focus on preventing climate disaster through reducing greenhouse gas emissions and transitioning to renewable energy sources. This would be a more effective and sustainable approach to ensuring the long-term viability of our food systems.

Russia’s Arctic Fiber Optic Network

Russia is forging ahead with the development of a vast submarine fiber-optic network in its Arctic territories. ‘Polar Express’ ambitious project is set to revolutionize connectivity in one of the world's most remote regions. A submarine fiber-optic communication line will reach the settlement of Tiksi in the Bulunsky district in 2025 as part of the 'Polar Express' project.

Construction on the 12,650-kilometer subsea cable system began in 2021, with the initial phase expected to be completed this year. The network will stretch from the Barents Sea to the Pacific Ocean, linking key Arctic ports such as Tiksi, Pevek, and Anadyr. Upon completion in 2026, the Polar Express is anticipated to provide a significant boost to digital infrastructure in the region, facilitating the growth of online commerce, cloud services, and big data applications.

The project is aligned with Russia's broader strategy for Arctic development. By enhancing connectivity, Moscow aims to bolster economic activity, support scientific research, and assert its sovereignty in the region.

Russia's Arctic Investments

The newly released report as part of the Business Index North project ?provides an overview of Russia's investments in the Arctic from 2017 to 2022, highlighting significant growth in certain regions like Chukotka, where the investment index increased nearly fourfold by 2022 compared to 2017. Russia is a significant player in Arctic investments, accounting for 50-60% of all investments in the whole Arctic region. This highlights Russia's dominant position in Arctic economic activities.

The primary focus of investments in the Russian Arctic is on the extraction of natural resources, which accounts for nearly 60% of the total investments in the region. This is in contrast to Russia's overall investment activity, which is more diversified.

Chukotka's investment surge is linked to large projects in mining (gold and copper), energy (floating nuclear thermal power plant), and infrastructure development along the Northern Sea Route

Despite varied investment activities across Russian Arctic regions, the total Arctic investments declined by an average of 3.3% per year during the period. The paper also discusses the challenges faced by Russia in meeting its ambitious Arctic objectives, including geopolitical tensions, financial constraints, technological barriers, and environmental concerns.

Fulbright Arctic Initiative IV week in Northern Norway

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During the Fulbright Arctic Initiative IV 1st Plenary Meeting we visited several key locations and institutions.

?The meeting began in Troms?, where participants engaged with representatives from the Arctic Council Secretariat , Norsk Polarinstitutt ? Norwegian Polar Institute , and the Indigenous People's Secretariat. These interactions provided insights into Arctic governance, scientific research, and Indigenous issues.

The journey continued to Alta visiting UiT-Alta, taking part in group work, learning about mental health and security, ?and then exploring petroglyphs at Alta Museum. We learnt about Masi, a site significant for its historical role in the Sámi rights movement due to conflicts over dam construction in the 1980s. This visit highlighted the importance of Indigenous rights and environmental issues in the region.

In Kautokeino, participants visited the Sámi University College and discussed current issues with the Sámi Parliament, including conflicts between reindeer herders and government windmill projects. This visit emphasized the ongoing challenges faced by indigenous communities in balancing traditional practices with modern development.

The itinerary also included a visti to ?Karasjok, where further discussions with the Sámi Parliament took place, focusing on indigenous governance and cultural preservation.

These visits and discussions were integral to understanding the complex interplay of environmental, cultural, and political factors in the Arctic region.

I am happy to work on the issues of Climate Change and Resources as part of this amazing group Rachael Lorna Johnstone (she/her) Anna Karlsdottìr Rikke ?stergaard Penny G. Lars H. Smedsrud ?sa Rennermalm !

Special thanks to FAI IV co-leads Lill Rastad Bj?rst and Elizabeth Rink! We had such a special time thanks to the amazing organization by Curt Rice !

Lectures and workshops by Terhi M?ls? , Sophia Eleonore Vejlgaard , Belinda Theriault enriched our experience.

Thank you for this opportunity!

Till next week!

Yours,

Alexandra