Melting glaciers and growing investment attractiveness: why Greenland is important

IA “FACT” already wrote about intention Donald Trump Jr. to visit Greenland in connection with plans his powerful father to include these territories in the United States. Teflon Don is not the first American leader who sought to acquire the “Land of Glaciers.” Even after the Second World War, the USA offered Denmark 100 million dollars for the island, but the deal did not take place. Instead, the US established a military base in the north of the island, which is still important for defense against missile threats and control over the Arctic.
Greenland is interesting for its size, convenient location and rich natural resources. The island has a lot of fresh water, oil, gas, gold, silver, copper, uranium and rare minerals indispensable for modern technologies. In addition, melting glaciers open up new sea routes, making the region even more important.
However, buying Greenland is not an easy task. Denmark does not want to sell the island, and most local residents dream of independence, not of joining the United States. In addition, extracting resources on the island is expensive and difficult due to the harsh climate.
So instead of buying, the US can increase its influence through investment and economic cooperation. This will allow access to resources and a foothold in the region without causing conflict. Interest in Greenland is also caused by the fact that Russia and China are active in the Arctic, and the USA does not want to lag behind. Greenland remains a strategically important territory around which the struggle for influence in the northern latitudes unfolds.
Greenland, Alaska, the Panama Canal, Louisiana as objects of interest of great powers
The “green land” has long attracted great powers due to its important location, rich resources and strategic importance. It is the largest island in the world, located between North America and Europe, making it an outpost for control over the North Atlantic region. This was especially evident during the Cold War, when the then superpowers competed for global influence. In 1951, the Americans created the Thule base in Greenland for early warning of nuclear threats. Because of its strategic location, Greenland was an important part of the US defense strategy, as ballistic missiles could cross the Arctic on their way to their targets.
Today, interest in the “Land of Glaciers” is only growing. Due to climate change, glaciers are melting, which opens access to natural resources, in particular, oil, gas and rare earth metals. In addition, new Arctic shipping routes make the region important for international trade. China and Russia have also stepped up in the region, worrying the US and other Western countries that are keen to maintain control over the Arctic.
In general, the Arctic is becoming a place of geopolitical competition between Russia, the USA and China. Russia has increased its presence here, modernized military bases, increased the fleet of nuclear submarines and is conducting large-scale exercises. It is also trying to secure rights to large parts of the Arctic shelf, causing international tension. For its part, China considers itself an “Arctic partner” and invests in Greenland’s mining and infrastructure. Obviously, for NATO and the USA, control over the Arctic is important both for security reasons and for the protection of trade routes.
Similar interest of “Uncle Sam” to strategically important territories has many historical precedents. Yes, in 1867 in the USA bought in Russia, Alaska for $7.2 million. This gave them access to new resources and increased their influence in the region. Another example is The Louisiana Purchase in 1803, when the States acquired a huge territory in France, which allowed them to expand their borders and gain control over important trade routes. In 1917, the United States purchased in the Danish Virgin Islands to ensure its presence in the Caribbean region. And the construction of the Panama Canal, which the USA initiated at the beginning of the 20th century, provided them with control over shipping between the Atlantic and Pacific oceans.
All these cases demonstrate the desire of great powers to ensure control over key territories that have strategic, economic or political value for them. And Greenland today is another example of such interest.
The cost and complexity of infrastructure projects, prospects for the development of renewable energy in Greenland
Construction of Greenlandic infrastructure is very difficult and expensive due to the harsh climate, low temperatures and glacial landscape. Construction of roads and ports requires special materials and technologies. Also, due to the isolation of the island, it is expensive to deliver materials and equipment. Often, mines and mining enterprises are located in remote places, which complicates their development.
It is worth noting that the economy of the “Land of Glaciers” is focused on several main industries. Fishing is the most important, providing more than 90% of exports, including shrimp and fish exported to Europe. The extraction of minerals – uranium, gold, rare earth metals and oil – is also extremely important, but this sector develops slowly due to high costs and the difficulty of transportation. Tourism is becoming more and more important, as travelers show an unwavering interest in glaciers, whales and the aurora borealis. However, the development of the industry is limited by insufficient infrastructure and harsh weather conditions.
“Green Earth” also has great potential in renewable energy. The melting of glaciers and the abundance of fresh water allow the construction of hydroelectric power plants, which already provide energy to the local population. In the future, the state can become a producer of “green” energy for export, using hydroelectric power to produce hydrogen, which is in high demand in Europe. This will reduce the island’s dependence on fishing and mining and ensure sustainable development.
At present, Podnybesna is interested in the development of one of the world’s largest deposits of rare earth metals in the Kvanefield area, necessary for the production of electronics and other high-tech products. Chinese companies also tried to start mining iron ore at the Ishua deposit, but this project ran into financial and political difficulties.
Beijing has also proposed investing in the construction of airports in Greenland, which would improve transport infrastructure, but this has raised concerns in the US due to possible Chinese influence in the region. China is also promoting the Polar Silk Road, part of its global initiative to boost trade in the Arctic.
In response, the US provided more than $12 million to support Greenland’s economy and increased its military presence through the Thule base. The US is also strengthening cooperation with Denmark and Greenland authorities to offer alternatives to Chinese investment.
Thus, Greenland has become a field of geopolitical struggle between the US and China. China is trying to strengthen its position through investment in resources and infrastructure, and the US is countering these efforts by offering financial support and increasing its presence in the region.
Impact of climate change and environmental risks on resource availability in Greenland
Climate change is having a significant impact on Greenland, opening up new opportunities to access its resources. Melting glaciers make it easier to mine gold, uranium, and rare earth metals. The demand for these resources is growing, because they are needed for the production of batteries, electronics and renewable energy technologies. Melting sea ice opens up new shipping routes, simplifying the transportation of resources and reducing costs. But with these opportunities come serious environmental challenges.
Mining in Greenland can be very damaging to nature. Mines pollute soil and water with toxic substances that can destroy ecosystems. Work in the areas of glaciers accelerates their melting, which affects the global ocean level. Mining also increases greenhouse gas emissions, which complicates the fight against climate change. Unique Arctic species of animals and plants are also under threat due to human activities.
Resource extraction in Greenland is causing political tension. The West and China are interested in its resources, which adds to geopolitical competition. Within the “Green Country” itself, this issue causes controversy: some see mining as an opportunity for economic growth and independence, while others are concerned about environmental damage and the impact on the traditional way of life. It is clear that the future of Greenland depends on how the government will balance economic benefits and nature conservation.
Issues of sovereignty and sale of territories in international law
International law clearly defines that territories belong to states that have full sovereignty over them. The key principle is the right of peoples to self-determination. That is, the inhabitants of the territory must independently decide whether they want to change their status, for example, to become part of another state.
Currently, Greenland has broad autonomy within the Kingdom of Denmark, controlling most internal affairs, particularly the management of natural resources. Denmark deals with defense, foreign policy and currency system. Any decision about the future of Greenland depends on the will of its inhabitants.
Residents of Greenland are discussing the possibility of expanding autonomy or gaining independence. Denmark supports their right to decide their future. Changes to the status of Greenland are possible only with the participation and consent of its inhabitants, which is the basis of modern international law.
Culture and traditions of Greenlanders are very important. The majority of the population – the Inuit – have a deep connection with nature. They often oppose large projects that may harm the environment. People want to find a balance between economic development and nature conservation. Greenlanders strive to preserve their culture, nature and independence. They are confident that they can develop based on their values and traditions, protecting their unique place in the world.
…Most Greenlanders do not want to join the US because it is important for them to preserve their identity, culture and autonomy. In 2019, when the United States offered to buy the island, Greenlanders perceived it as a threat to their traditional way of life and their desire for independence. They believe that the future of Greenland lies in complete independence.
Tetyana Viktorova