Greenland Aims for Sustainable Development through Extractive Industry Growth
As the country looks to expand its extractive industry, a preliminary stakeholder consultation has shed light on the key considerations for sustainable development in Greenland.
Infrastructure Expansion a Priority
One of the main concerns is the need for expanded transportation, information, and communication infrastructure to support the growth of extractive industries. This includes:
- Public procurement arrangements
- Public-private partnership arrangements
to ensure that the necessary infrastructure is put in place.
Uranium Mining: A Sensitive Topic
Another issue on the table is the potential relaxation of Greenland’s zero-tolerance uranium policy. While the country currently prohibits the extraction of all radioactive elements, there is growing pressure to allow the extraction of uranium as a by-product of mines targeting other metals. Rare earth element deposits can only be extracted with uranium, making this a crucial consideration.
Incentivizing Foreign Investors
To promote sustainable development, incentives are being considered to encourage foreign investors to improve their:
- Corporate governance
- Environmental and social performance
This includes measures such as:
- Strategic environmental and social impact assessments
- Toxic waste treatment
- Provisions for migrant workers
Balancing Interests
The consultation also highlighted the need to balance foreign investment interests with national sovereignty and wider geopolitical dynamics, particularly in light of Denmark’s significant contribution to Greenland’s economy.
Programs and Provisions
Other key considerations include:
- Programs to facilitate business and supplier linkages in the domestic economy
- Provisions for the expansion of the financial services sector
- Strategies for up-skilling and employing Greenlandic nationals
A Complex Landscape
The consultation highlights the complex landscape facing Greenland as it navigates the growth of its extractive industries. The country must balance economic development with environmental and social concerns while also ensuring that foreign investment is managed in a way that benefits both parties.
Next Steps
The IISD will continue to work with stakeholders to develop a comprehensive approach to sustainable development in Greenland. The organization’s experts will provide guidance on the design of laws, policies, and instruments to support the country’s goals.
Contact
- Oshani Perera, Program leader, Public Procurement and Infrastructure Program at IISD
- Email: operera@iisd.org
Source
- Sustainable Development in Greenland: Perspectives from a preliminary stakeholder consultation (IISD Commentary, December 2013)