Meld. St. 7 (2011–2012) Report to the Storting (white paper) (white Storting the to Report (2011–2012) 7 St. Meld. Meld. St. 7 (2011–2012) Report to the Storting (white paper)

Published by: Norwegian Ministry of Foreign Affairs The High North

Internet address: www.government.no Visions and strategies

Cover photo: Norwegian Military Geographic Service

Printed by: 07 Xpress AS 08/2012 The High North Meld. St. 7 (2011–2012) Report to the Storting (white paper)

The High North Visions and strategies

Translation from the Norwegian. For information only. Contens

Part I Strategic objectives and policy 6 Security and defence ...... 68 instruments ...... 7 7 Cooperation in the High North 73 Introduction ...... 9 7.1 Russia ...... 74 7.2 The Arctic Council ...... 83 1 Achievements in Norway's High 7.3 The Barents Cooperation ...... 86 North policy. The way forward 7.4 The Northern Dimension ...... 92 and overall objectives ...... 10 7.5 Nordic cooperation ...... 94

2 Strategic priorities and results 20 Part III Growing activity in the High 2.1 Main objectives of the High North North. Opportunities and policy ...... 20 challenges ...... 95 2.2 Strategic priorities and results ..... 21 8 Environmental protection and 3 An integrated High North policy 32 environmental problems ...... 97 3.1 A targeted High North policy ...... 33 8.1 The natural environment as an 3.2 Geopolitics in the High North ...... 34 essential basis for welfare and 3.3 Climate change: a warmer Arctic . 36 value creation ...... 98 3.4 Knowledge is at the core of our 8.2 Pressures and impacts on the High North policy ...... 38 environment in the High North .... 98 3.5 The indigenous dimension of 8.3 A long-term, integrated environ- Norway’s High North policy ...... 44 mental management regime ...... 100 8.4 Targeted regional and global 4 Instruments of Norway’s High environmental cooperation ...... 101 North policy ...... 46 4.1 The High North Strategy and 9 Knowledge-based integrated New Building Blocks in the North 46 marine management ...... 103 4.2 Policy instruments for the High North ...... 47 10 Maritime safety, oil spill 4.3 International dialogue ...... 52 preparedness and response, 4.4 National dialogue ...... 55 and search and rescue capacity 105 10.1 Maritime safety and preparedness Part II A responsible actor in the and response to acute pollution .... 105 High North ...... 57 10.2 Search and rescue ...... 108

5 International legal framework 59 11 Fisheries, aquaculture and 5.1 A basis for stability and marine bioprospecting ...... 111 predictability ...... 59 11.1 The fisheries industry in the 5.1.1 The Law of the Sea ...... 60 High North ...... 112 5.1.2 Norway’s 200-mile zones ...... 60 11.2 Aquaculture in the High North ..... 114 5.1.3 Svalbard and Jan Mayen ...... 60 11.3 Marine bioprospecting ...... 116 5.1.4 Unresolved issues related to jurisdiction ...... 62 12 Oil and gas activities ...... 118 5.2 Borders ...... 62 5.2.1 Norway’s land borders in the north 62 13 Business development and 5.2.2 Delimitation of the continental value creation ...... 123 shelf and the economic zones ..... 62 13.1 Knowledge and innovation as a 5.3 Treaty with Russia on maritime basis for business development ... 123 delimitation and cooperation in the 13.2 Infrastructure for transport and Barents Sea and the Arctic Ocean 65 electronic communications ...... 126 5.4 The rights of indigenous peoples . 66 13.3 Electricity infrastructure and renewable energy ...... 129 13.4 New prospects for the maritime 13.8 Arctic agriculture and reindeer sector ...... 130 husbandry ...... 139 13.5 Mineral extraction in the High North ...... 133 14 Economic and administrative 13.6 Space-related activity ...... 136 consequences ...... 142 13.7 Tourism ...... 138 The High North Visions and strategies

Meld. St. 7 (2011–2012) Report to the Storting (white paper)

Recommendation of 18 November 2011 from the Ministry of Foreign Affairs, approved in the Council of State the same day. (white paper from the Stoltenberg II Government)

Part I Strategic objectives and policy instruments

2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 9 The High North

Introduction

This white paper presents a comprehensive over- The white paper outlines the policy direction view of the Government’s High North policy. It and ambitions in a number of selected areas. The outlines visions, objectives and policy instru- relevant ministries report to the Storting on ments. implementation in the various policy areas. The The Government takes a long-term approach measures outlined in this white paper must be to the High North policy, viewing it as a process viewed in connection with the most recent white that will span generations. The Government paper on Svalbard (Report No. 22 (2008–2009) to reports on and formulates key elements of policy the Storting), the First update of the Integrated in connection with the annual budgets. The Management Plan for the Marine Environment of national budgets contain information on the status the Barents Sea–Lofoten Area (Meld. St. 10 (2010– and progress made in the various areas. But the 2011)), the white paper An industry for the future – impact and results of the annual initiatives must Norway’s petroleum activities (Meld. St. 28 (2010– also be viewed from a longer-term perspective. 2011), the National Transport Plan 2010–2019, The previous white paper on the High North, and other planning documents in relevant sectors. Opportunities and Challenges in the North (Report The basic structure of the white paper is as fol- No. 30 (2004–2005) to the Storting) laid the foun- lows: dation for much of the High North policy. In Part I describes how the High North policy autumn 2005 the Government’s policy platform has taken shape over the past 20 years. It sets out identified the High North as Norway’s most the role Norway has played in setting the agenda important strategic foreign policy priority, and the for political developments in the High North, an scope of the policy was broadened, the ambition area that is now attracting considerable internatio- level raised and policy instruments strengthened. nal attention. It provides an outline of the main In 2006 the Government presented its High objectives of Norway’s High North policy for the North Strategy. This was followed up in 2009 with next 20 years as well as an overview of the results the publication of the report New Building Blocks achieved and future priorities in 15 strategic prio- in the North – the next step in the Government’s rity areas. High North Strategy. These documents form the Part II reviews key foreign policy issues asso- basis for the Government’s High North policy. ciated with Norway’s role as a responsible actor in The main focus of the present white paper is on the High North, with a focus on the international foreign policy. Particular emphasis is given to the legal framework, clarification of border issues, role Norway’s strategic, long-term efforts in the security policy trends, the role of the Norwegian High North can play in strengthening the basis for Armed Forces, and the development of coopera- value creation and welfare throughout the country. tion with Russia and other states in the High The present white paper provides an in-depth North, for example through circumpolar and regi- foreign policy analysis and sets out Norway’s pri- onal cooperation forums. orities in the context of a changing international Part III reviews the relevance of the High agenda. It is not a white paper about North Nor- North policy in other key areas. The Government way. Nor is it a review of regional policy. The focus will take steps to facilitate increased activity and of the High North policy is on strengthening Nor- value creation in the High North. This section of way’s position in the High North by drawing on the white paper discusses the environmental fram- experience, knowledge and resources from all ework for business activity and the importance of over the country. We will seek to safeguard Nor- integrated marine management and maritime wegian interests, enhance the basis for value cre- safety, as well as fisheries and aquaculture, petro- ation, ensure sustainable management of the envi- leum activities and a few key land-based indus- ronment and sound exploitation of resources, and tries. strengthen our presence and cooperation in the High North. 10 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

1 Achievements in Norway's High North policy. The way forward and overall objectives

Figure 1.1 North Cape, Finnmark. Photo: Johan Wildhagen / www.visitnorway.com

From the vantage point of 2011, we can look back and identify some of the main features of develop- 1990–2010: The High North policy takes shape ments in the High North up to today. Our policy Norway’s High North policy in its present form has provides guidelines for both domestic and foreign been developed since the end of the Cold War, but policy initiatives through planning documents, is also based on experience gained many years ago. increased use of resources and active interaction Since 2005, our explicit political ambition has been with private actors, regional and local partners to strengthen Norwegian policy to promote knowl- and other countries. The High North has become edge of, and activity and presence in, the High a recognisable framework for Norwegian policy – North. Practically every ministry and a wide range both domestic and foreign policy. of public and private actors set themselves goals in Now that a framework has been established this area, and are involved in formulating and through a broad range of national, regional, local implementing our High North policy. and international initiatives, we can look ahead Over the years, seven major themes have and consider which areas are likely to be in focus emerged as key elements in the development of in the next 20 years. our current High North policy. 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 11 The High North

The Arctic Council was established in 1996 as 1) Deepening and renewal of cooperation with Russia a forum for circumpolar cooperation throughout Our relations with Russia are one of the mainstays the Arctic. The successor to the Arctic Environ- of Norway’s High North policy. In the course of mental Protection Strategy, the Arctic Council was two decades, the nature of these relations has initially a forum for environmental cooperation, changed from one of confrontation, as was the and has since been expanded to include sustain- case during the Cold War, to one of greater confi- able development as well. This cooperation is dence, a wider range of contacts and closer co- increasingly focusing on climate change and the operation. serious impacts it may have in the Arctic. Today, During this period, the mistrust that marked cooperation within the Arctic Council encom- the Cold War years has to a great extent been passes shipping, integrated management of replaced by normal, good neighbourly relations. resources, oil and gas, tourism, education, In addition to their role as regional forums, the research, health, and economic and cultural Barents Cooperation and the Arctic Council have issues in addition to climate change and the envi- become important meeting places for Norway and ronment. The Arctic Council is the only circumpo- Russia, where our countries are finding common lar body and the leading political body for Arctic interests in more and more areas. Through peo- issues. ple-to-people cooperation in the High North, con- Norway has systematically sought to maintain tacts have been established in most areas and new and further develop ties with countries outside networks are constantly being developed. This the Arctic region as well, for example through a gives Norway’s relations with Russia a whole new series of High North dialogues. The Norwegian dimension. authorities have used these dialogues to inform The bilateral relations between Norway and key partners on a regular basis about Norway’s Russia are good, and have been improving views and assessments and discuss challenges steadily in recent years. Nonetheless, we still and opportunities. encounter demanding challenges because of dif- Previously, there were few countries or major ferences between our respective political and economic actors outside the region that were administrative cultures. Russia is facing a number engaged in Arctic areas. This is changing. The of challenges in relation to its political system, EU, key EU countries and several Asian countries democracy, the rule of law, respect for human are now developing their own Arctic policy, as all rights and the framework for the business sector. the countries that border directly on the Arctic These are issues Norway has to deal with while Ocean have already done. At the turn of the mil- developing even closer cooperation with this lennium, there were few countries outside the neighbour and major power to the East. Arctic that had the expertise and resources Our membership of NATO has helped to pro- needed to operate in the north. Now, on the other vide stability and predictability in our neighbour- hand, we see that an increasing number of coun- ing areas. tries are focusing on the region, and are therefore building the necessary expertise and capacity to do so. International organisations and commercial 2) Development of broad-based High North diplomacy actors are doing the same. When Norway took the initiative for the establish- ment of the Barents Cooperation in 1993, it was considered important to include countries outside 3) Knowledge of the alarming pace of climate change the region as well. The idea was that this would Climate issues were placed firmly on the interna- make it easier to deal with political and economic tional political agenda in the 1990s with the negoti- challenges in the region. ation of the Climate Change Convention and the The Barents Cooperation has become one of Kyoto Protocol. As a result of the focus on global the mainstays of the formal regional coopera- climate change, the High North also received tion in the north. Close ties between people in more attention. The reason for this was firstly that North Norway and northwestern Russia have change was apparent in the Arctic earlier than been an important supplement, and at times a elsewhere and was more rapid, and secondly that corrective, to the diplomacy practised in the change in the Arctic would influence the global capitals. These ties have also facilitated eco- climate system. A major Arctic Council assess- nomic growth and helped to strengthen people- ment of climate change in the Arctic (ACIA) to-people contact. improved knowledge of the interactions between 12 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North regional and global climate change and provided always been an important basis for viable local an important contribution to the Fourth Assess- communities and -settlement along the Norwe- ment Report from the Intergovernmental Panel gian coast. And the further north you go, the on Climate Change (IPCC), which was published richer the marine resources. in 2007. There have been major structural changes in Climate change is putting growing pressure the fisheries sector in recent decades, including on the flora and fauna and entire ecosystems, and the discontinuation of various government making it difficult for indigenous peoples to main- financed support schemes. The resource base is tain their traditional way of life and livelihoods. robust as a result of long-term management in However, the impacts of the changes we are accordance with the principles of sustainable har- observing in the north may be at least as severe vesting. The conventional fisheries are now a and have very serious consequences for people’s modern, thriving and profitable industry. There living conditions in other parts of the world. For has also been huge growth in the aquaculture example, rising sea levels caused by the melting industry since the 1970s and 1980s. of inland ice sheets will have a major global The fisheries sector is Norway’s second larg- impact. est export industry, after the oil and gas industry. At the same time, the melting ice is providing And for many years, Norway has been among the greater access to resources in the High North and world’s top two or three exporters of fish and fish opening up new opportunities for shipping. This products. In 2010, the export value of Norwegian in turn is leading to growing interest in exploiting seafood was NOK 53.8 billion, setting a new resources in the Arctic and an increase in mari- record for the seventh year in a row. time activity. For centuries, the Arctic Ocean has Today the Barents Sea is home to the world’s been shrouded in mystery and only explored by largest cod stock, the haddock stock is at a record the boldest Arctic travellers. In recent years, we level, and the capelin stock is also strong. During have seen ships make the first commercial jour- the past 10–12 years, close cooperation on long- neys along the Northeast Passage, carrying term management strategies for the shared Nor- goods between Europe and Asia. wegian–Russian fish stocks based on the precau- The rapid pace of climate change and growing tionary approach has given very good results. In economic activity mean that it will be even more the past few years, Norway and Russia have also important to integrate environmental policy into completed the harmonisation of regulatory mea- all sectors. sures for the fisheries on both sides of the border. The Norwegian and Russian authorities have made a concerted effort to combat illegal, unre- 4) Integrated marine management has safeguarded ported and unregulated (IUU) fishing in the Bar- resources ents and Norwegian Seas in recent years. The management plan for the Barents Sea–Lofo- At the same time new knowledge about ten area was the first management plan developed marine organisms offers exciting future opportu- for a Norwegian sea area. It was a ground-break- nities for sustainable value creation based on ing effort, putting the concept of an integrated, marine bioprospecting. ecosystem-based management regime into prac- tice and finding a balance between different user interests within this framework. Norway chose to 5) The contours of a new oil and gas -province develop the plan for the Barents Sea–Lofoten area Estimates indicating that a large share of the first because it is a rich, clean area of sea where world’s undiscovered oil and gas resources is to considerable new activity was anticipated. The be found in Arctic areas are an important reason plan has provided a starting point for work on inte- for the growing interest in the region. grated management plans for other Norwegian The Barents Sea is one of the areas where con- sea areas. Our work on integrated management siderable petroleum resources are expected to be plans has attracted considerable international found. In 1986, large discoveries were made in the attention, and provides a model for regional coop- Shtokman field in Russian waters. The Snøhvit eration on marine management in the High field in Norwegian waters was discovered in 1980, North. and this was the first field to be developed in the Norway is responsible for managing vast sea Barents Sea, starting in 2001. The Skrugard and areas that are home to some of the world’s most Norvarg fields were discovered in 2011, which fur- abundant fish stocks. Marine resources have ther heightened expectations. 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 13 The High North

Previously, the unresolved issue of the mari- unregulated area where open conflict on time delimitation between Norway and Russia resources could be expected. Its emphasis on the prevented exploration activities in parts of the applicability of the Law of the Sea in the Arctic Barents Sea. Following the entry into force of the Ocean lays the foundation for orderly, predictable treaty on maritime delimitation between Norway relations between the coastal states, while at the and Russia on 7 July, 2011, new possibilities for oil same time signalling to the rest of the world that and gas exploration in the southern Barents Sea the coastal states are taking their responsibility opened up. There are many opportunities for seriously. One of the Government’s primary aims cooperation between Norway and Russia. How- has been to play a part in bringing about this clari- ever, growing oil and gas activity will entail new fication. environmental challenges in marine areas with The Law of the Sea gives Norway jurisdiction vulnerable ecosystems. over substantial resources. This also means that In response to the prospects of oil and gas pro- Norway has a major responsibility for sound man- duction in the north, large parts of the Norwegian agement of these areas. There is general agree- offshore and supply industry have been building ment that in order to develop a sound manage- up expertise and making strategic investments. ment regime, we must first have adequate knowl- This has also sparked a broad public debate on edge of the resources and environment on the the spin-off effects that can be expected for local seabed, in the water column, and on the surface of communities and the business sector in North the sea. Integrated management plans are impor- Norway. tant as they provide a basis for increased use of resources within an environmentally sustainable framework. 6) Acceptance for the principles of the Law of the Sea In recent decades, important issues concerning jurisdiction in the Norwegian Sea, the Barents 7) A cooperation network is taking shape Sea, and the Arctic Ocean that affect Norway have Since the end of the Cold War, a number of coop- been clarified. For all practical purposes, the out- eration forums have emerged in the north, both standing issues concerning the maritime delimita- the circumpolar Arctic Council and regional tion of areas under Norwegian jurisdiction have forums such as the Barents Euro-Arctic Council. now been resolved. In the Southern Part of the Relations between Norway and Russia have Banana Hole of the Northeast Atlantic, the final been developed bilaterally, as well as through the delimitation will be determined in accordance Barents Cooperation and the Arctic Council. The with the arrangements made in 2006 once the traditional Nordic cooperation has also focused neighbouring states (Iceland and Denmark/the more attention on High North issues since the Faroe Islands) have received the final recommen- 1990s, when developments in the Baltic Sea dations on the outer limits of their continental region dominated the agenda. Indigenous issues shelves from the Commission on the Limits of the are a key area of cooperation within the Arctic Continental Shelf. Council, the Barents Euro-Arctic Council and the Norway is the first of the Arctic states to have Northern Dimension, and in the bilateral High had the outer limits of its continental shelf clari- North dialogues with Russia and Canada. The fied in accordance with the UN Convention on the Sami Parliament (Sámediggi) has representatives Law of the Sea. in the Norwegian delegations to the Arctic Coun- Thus, for the first time we know the full extent cil and the Barents Euro-Arctic Council, and plays of the geographical scope of the Kingdom of Nor- an active part in the Indigenous People’s Research way – on land, at sea and on the seabed. Norway Network. is responsible for a marine area seven times larger In the past few years there has been renewed than its total land area. The five states bordering interest in closer cooperation between the Nordic on the Arctic Ocean confirmed, in a ministerial countries on foreign and security policy, which declaration (the Ilulissat Declaration) in 2008, that has resulted in clear guidelines for policy develop- the Law of the Sea provides the legal framework ment in the High North. The 2009 Stoltenberg for clarifying issues related to jurisdiction and Report, Nordic Cooperation on Foreign and Secu- management in the Arctic sea areas. This is very rity Policy, outlines specific proposals for coopera- important. tion in 12 different areas and for a Nordic declara- The Ilulissat Declaration corrected the notion tion of solidarity. The Nordic Foreign Ministers held by certain key actors that the Arctic was an endorsed the proposals set out in the report, and 14 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North they are now being followed up in a number of those parts of the cooperation that will increase areas. value creation and improve the lives of the inhabit- The Northern Dimension is a partnership ants of the region. between the EU, Russia, Norway and Iceland. It In order to succeed in this, we have to mobil- was originally developed in connection with the ise knowledge, individual actors, centres of exper- northern EU countries’ efforts to strengthen the tise and capital. We must forge fruitful partner- EU’s engagement in the north. This cooperation ships between public and private actors. Coopera- has served to intensify the EU’s political and eco- tion between central government, regional and nomic engagement in the north, just as the EU’s local authorities must be further developed. And participation in the Barents Euro-Arctic Council we must develop networks between Norwegian ensures close contact with the EU. It consists of and foreign actors. partnerships in various priority sectors (e.g. envi- Knowledge is at the core of our High North ronment, transport, health, culture). A number of policy. It is people’s knowledge and day-to-day jointly financed projects have been carried out work that make it possible to exploit and develop under the Northern Dimension, for example on the potential that lies in the north in a sustainable, improving environmental and health conditions far-sighted way to the benefit of society. The Gov- for the inhabitants of the region. ernment has taken concrete steps to promote the There are close ties between the various coop- systematic building of knowledge and knowledge eration forums. They all take a pragmatic infrastructure at the universities, university col- approach, and give priority to dealing with tasks of leges and other knowledge institutions, for exam- importance for the economy, the environment, ple by providing annual grants from the Ministry transport and cooperation between countries and of Foreign Affairs through the Barents 2020 pro- regions in the north. gramme. The Government considers it important to consolidate and further develop these and other knowledge communities. Division of labour, 2011–2030: The way forward and overall cooperation, critical mass and quality are key- objectives words. In the Government’s view, it is important There have been rapid developments in the High to engage with knowledge institutions in other North over the past 20 years. Nevertheless, 2011 countries and facilitate staff exchanges with inno- may well go down in history as the first year of the vative companies and institutions in relevant High North decade. In the Government’s view, fields. developments in the High North have great poten- The Government views Norway’s High North tial for strengthening the long-term basis for efforts in a generational perspective. Specific proj- employment and economic activity not only in ects will be developed on an ongoing basis North Norway but in the rest of the country as through new plans and annual budgets. But we well. also need a wider horizon that defines our direc- One of Norway’s overall objectives is to pro- tion and our overriding aims – in relation to both vide a framework for increased value creation in the trends we believe will determine the way for- the High North. This must be done in a way that ward and the aims we are seeking to achieve. takes account of the environment, climate and On this basis, the Government has outlined interests of indigenous peoples. We must there- seven development trends that will shape the ini- fore facilitate the coexistence of different indus- tiatives and priorities of Norwegian High North tries and interests within an environmentally sus- policy. tainable framework. This will require knowledge, expertise and, not least, a close dialogue between the various parties. 1) A new energy province in Europe During the past few decades, political initia- The Barents Sea seems likely to become an tives have helped to ensure peace and stability, important European energy province. How rap- clarify and confirm the legal framework for idly it will develop and how important it becomes national jurisdiction and activity in the High will depend on market conditions, technological North, and develop sound political cooperation developments, the size of any commercially viable structures and extensive people-to-people cooper- discoveries of oil and gas, and how fast renewable ation. With all this firmly in place, the Govern- energy sources are developed. The development ment considers that a foundation has been laid of oil and gas activities must also be weighed that makes it appropriate to focus even more on against considerations of other industries and 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 15 The High North interests within the framework of integrated, eco- replacement for coal. Norway and Europe are system-based management. Oil and gas deliveries long-term gas partners. We will continue explora- from this region can improve European energy tion for gas – particularly in the High North. security and make an important contribution to If new major discoveries are made in the Bar- global energy supplies, and at the same time pro- ents Sea and market conditions are suitable, we vide a basis for developing industry and services will consider the potential for the profitable use of in North Norway. This has important economic gas in onshore industries and look at how new and foreign policy implications. infrastructure can be developed. There is also a potential for renewable energy Expectations of rising activity levels may pave developments in this region, including hydro- the way for extensive Norwegian–Russian off- power, and wind and wave power. Long distances, shore cooperation. The petroleum potential of the market-related issues, the need for new infrastruc- Barents Sea also provides a basis for building up ture and environmental and safety issues will pose knowledge clusters that can contribute to value challenges. All the evidence suggests that the creation, employment and spin-off effects in energy dimension will be the most important northern parts of Norway and Russia. driver of increased interest in this region in politi- cal and business circles in other parts of the world. 2) A new industrial age in the High North In our contacts with other states and foreign The natural resources of the High North have commercial interests, issues related to access to been there since time immemorial; it is knowl- energy and energy security will become increas- edge and the growing demand that is making it ingly important both in themselves and as part of possible to utilise them. The Government will give foreign and security policy. Environmental stan- priority to the development of knowledge relating dards, technology, the protection of particularly to new opportunities for industry, value creation valuable areas, and emergency preparedness and and employment in the High North. response will be particularly important, as will Sound use of oil and gas resources offers a opportunities and challenges related to the devel- particularly great potential. The Government’s opment of technology for Arctic waters. aim is for development of the oil and gas industry Norway has geographical advantages and to open up opportunities for local value creation extensive experience and knowledge of energy and development. production at sea, and the Government intends to Sustainable management of fisheries build on this. The Government considers it impor- resources will continue to be a key element of tant to enable Norwegian knowledge institutions industrial development in the north. New aquacul- and companies to play a leading role in developing ture opportunities are likely to emerge in the the new energy province. years ahead. Through its focus on marine bio- Norway and Russia are, as coastal states, prospecting, the Government is promoting indus- responsible for regulating activity on their conti- trial development based on new knowledge about nental shelf areas in the Barents Sea. The Govern- marine organisms. New products and processes ment will boost the potential of this energy prov- will be developed, with a potential for value cre- ince through the development of closer coopera- ation and employment. tion between the authorities in the two countries With rising oil and gas production and min- and between industry and supplier industries and eral extraction and a convenient location in rela- knowledge institutions. tion to new transport routes, it may become Gas from the Barents Sea may become an more attractive to establish other types of indus- important European energy resource. Both the try in the High North as well. As indicated in the EU and individual countries in Europe are draw- white paper on Norway’s petroleum activities, ing up plans for further development of energy the Government will facilitate increased indus- supplies in the period up to 2050. Common fea- trial use of gas in Norway. The alternative value tures are the development of renewable energy of the gas is its market price. Industrial use of sources and energy efficiency measures. At the gas in Norway must therefore be profitable, with same time, there is general recognition that there market-based gas purchase agreements. The will be a considerable need for other energy Government’s point of departure is that the sources as well during this period. The Interna- industry is deve-loped in an environmentally tional Energy Agency (IEA) has highlighted the sound way and within the framework of Norwe- advantages of making more use of natural gas as a gian climate policy. 16 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

The potential for increased industrial activity between the Arctic states and with other states makes it even more interesting to develop eco- and actors that are engaged in activities in the nomic cooperation with Russia, Sweden and Fin- High North. Cooperation within the framework land in the north. of the Arctic Council and further development of The Government will facilitate close, broad- cooperation with Russia on fisheries and marine based industrial cooperation with Russia. In addi- management in the Barents Sea are of key impor- tion to industrial cooperation, steps to reduce tance here. This cooperation will be important practical barriers relating to visas, labour migra- for harmonisation of standards and legislation on tion, customs duties, taxation, border procedures, sound management of the northern sea areas. legal issues and property rights will be of key importance. At the same time, there are exciting opportuni- 4) The growing attraction of the Arctic Ocean ties for closer cooperation between the Nordic At some point in the future, ice may no longer be a countries on industrial development in the north. barrier to transport between Asia, North America The Government will seek to further develop and Europe through the Arctic Ocean. business cooperation, particularly with neighbour- There is no immediate prospect of year-round ing areas of Sweden and Finland, but also with shipping in these waters, where harsh weather other countries in and outside the High North. It and ice will continue to cause difficulties. But even will also be necessary to increase cooperation today, merchant ships operating under normal with other countries to assess the impacts of new commercial conditions are using the Northeast activities and identify environmentally sound solu- Passage to cut travel times and costs. There is rea- tions for joint projects. son to believe that the volume of shipping will The Government will maintain close contact increase. Russia will face a number of challenges with the regional authorities and the Sami Parlia- in connection with traffic along a coastline where ment on these issues. little infrastructure has been developed. Norway will have to deal with the risks involved in increased traffic along its coast, but will also have 3) Pioneering work on integrated marine management opportunities to provide services for these ships. There is already extensive cooperation on envi- In the near future, however, transport to and ronmental protection and sustainable manage- from Russia and petroleum-related activities are ment of living marine resources in the north. We expected to account for most of the increase in have put in place management plans to ensure transport volume. Increasing activity will make it long-term integrated management of Norway’s necessary to develop cooperation between Nor- sea areas and encourage value creation within a way and Russia on improving the safety and effi- framework that maintains the structure, func- ciency of maritime activities. tioning and productivity of their ecosystems. These developments will have geopolitical The Government’s ambition is to be at the fore- consequences. Countries such as China, Japan, front of developments in this field in the years South Korea and Singapore are also showing ahead. interest in the possibilities of using Arctic sea Climate change, ocean acidification and routes, and a new window of opportunity is open- increasing levels of activity will give rise to new ing up for cooperation and exchange with these challenges for the authorities responsible for envi- countries. This will give considerable room for ronmental and natural resource management, and developing expertise, infrastructure and networks they will have to meet new demands for knowl- that make spin-off effects in Norway more likely. edge and adaptation. Norway must therefore Shorter transport distances and lower prices may develop its knowledge-based environmental and improve the competitive position of Norwegian resource management regime. We need to suc- actors in Asian markets. ceed in this so that the inevitable processes of All these trends combined will increase the change do not cause degradation of important strategic importance of Norway’s coastline and habitats and ecosystems or depletion of living port capacity. resources that we need as a basis for development Growing activity may increase the need for and welfare in the future. regulation in the northern sea areas and may have Sound environmental and natural resource implications for search and rescue capacity and oil management also requires closer cooperation spill preparedness and response. 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 17 The High North

5) Source of knowledge about the environment and 6) Close and innovative cooperation in the High North climate change The system of regional cooperation in the High The High North is a crucial source of knowledge North is pragmatic and focuses on resolving prac- about the Arctic environment and climate, which tical cross-border challenges. has implications far beyond the region itself. The Government’s aim is for the Arctic Coun- Knowledge about the Arctic climate is impor- cil, the Barents Euro-Arctic Council and the tant for global climate policy and for taking the Northern Dimension to be further developed and decisions needed to reduce global warming. strengthened. Many challenges can best be Knowledge gained in the Arctic is already of cru- addressed through close cooperation, and all the cial importance for understanding the functioning countries involved have expressed a desire to of the climate system at global as well as regional strengthen cooperation. The Government wishes level. At the same time, knowledge about climate Norway to continue to play a leading role in deep- change and ocean acidification and the impacts ening and expanding this cooperation, with open these will have in the High North is an essential channels to non-Arctic states and partners outside basis for management of the environment and nat- the region. ural resources and for adaptation of future activi- Contact and cooperation between academic ties in the region. and other knowledge institutions across national Norway has systematically built up centres of borders in the north have resulted in the develop- expertise that are well placed to develop and dis- ment of a stronger network that has also helped to seminate new knowledge. The Centre for Climate bring about sound political solutions between Dynamics at the Bjerknes Centre for Climate states. In the years ahead, the Government will Research, the research communities associated promote the expansion and strengthening of with the University of Tromsø and the Fram Cen- knowledge networks between Norway and neigh- tre, the University of Nordland, CICERO (the bouring countries, and North American, other Center for International Climate and Environmen- European and Asian countries. tal Research – Oslo) and other leading research While the management of petroleum groups put Norway in a good position to play a resources and the determination of conditions for prominent role in international research coopera- exploration and extraction activities are a national tion on the Arctic climate and the impacts of cli- responsibility, the development of knowledge mate change. The Government considers it very regarding the environment and security is a field important to support these knowledge communi- where international cooperation is advantageous. ties so that they can maintain their position as Norway and Russia have started cooperation internationally leading centres of expertise. on establishing a joint environmental monitoring Svalbard is a unique platform for national and programme and developing the basis for an inte- international polar research, with advanced scien- grated management plan for the Russian part of tific infrastructure in Ny-Ålesund and at the Uni- the Barents Sea, based on the same principles as versity Centre in Svalbard (UNIS). In the years the Norwegian plan. ahead, Svalbard will be further developed and Cooperation under the Arctic Council has strengthened as a platform for research, higher been steadily expanded over the years, and the education and monitoring. Council has helped to put important issues on the The recent establishment of a permanent sec- agenda, especially as regards the environment retariat for the Arctic Council in Tromsø will put and climate change, but also in areas such as ship- Norwegian centres of expertise in an even better ping, oil and gas, and tourism. In 2011, this was position to play a part in setting the agenda for supplemented when the member states concluded international climate diplomacy in the future. the Arctic Search and Rescue Agreement, the first The environment of the High North is very legally binding agreement to be negotiated under vulnerable, and there are serious problems the auspices of the Arctic Council. More such related to inputs of long-range pollutants and to agreements can be expected in the years ahead. hazardous waste, including nuclear waste, on the In autumn 2011, the member states started negoti- Russian side of the border. The situation has been ations on oil spill preparedness and response in improved through international cooperation, but a Arctic areas, led by Norway, the US and Russia. clear focus on these problems must be maintained It is important to respond consistently and pre- in the years ahead to ensure that economic and dictably to the increasing interest in the Arctic on industrial activity is within safe ecological limits. the part of states and actors outside the region. 18 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

Norway recognises other states’ legitimate inter- northwards. This is not a response to a military ests in the Arctic and welcomes new permanent threat; rather it was a natural way of underscoring observers to the Arctic Council provided that they the responsibility Norway has in the north by vir- meet the criteria that have been established. tue of its geographical location. In the time ahead, The situation of indigenous people will always the armed forces will focus increasingly on their figure prominently in regional cooperation in the tasks in the north. north. Bodies such as the Arctic Council and the In the years ahead Norway will continue its Barents Euro-Arctic Council are forums where long tradition of hosting Allied exercises in our indigenous peoples’ interests can be safeguarded territory, also in the north. It will also be natural to and further developed in a large geographical further develop cooperation between Norway and area across national borders. Russia in the military field and as regards fisher- The Barents Cooperation will celebrate its ies control in the Barents Sea. 20th anniversary in 2013, during Norway’s chair- At the same time, the strategic picture is manship. A great deal has happened and exten- changing: the traditional climate of confrontation sive experience has been gained, both regionally between East and West is giving way to greater and globally, since the Kirkenes declaration in cooperation with, and signs of interest from, more 1993. Now it is natural to look ahead, and Norway actors – North American, European and Asian. will take the initiative for a new declaration that They are interested in new transport routes, sets out the visions and direction for cooperation access to resources and knowledge about climate over the next 20 years. A number of suitable areas change, the melting ice and changes in the marine for closer cooperation are emerging: development environment. of the mineral industry, closer people-to-people Northern waters are becoming more accessi- contacts, gradual labour market integration, edu- ble due to the melting ice and new transport and cation, environmental protection and research, surveillance technology. There will be an increase and other areas of significance for the environ- in commercial activity in waters where there was ment, living conditions and business develop- previously scarcely any traffic, and we must be ment. Regional authorities, indigenous peoples’ prepared for both desirable and undesirable traf- organisations and the Barents Secretariat are fic. There will be a greater need to maintain order important drivers of this cooperation. in our northern sea areas and greater demands on the search and rescue capacity of coastal states. It will continue to be important for Norway to 7) New geopolitical centre of gravity in the High North ensure compliance with fundamental principles of For more than 40 years, strategic and geopolitical international law and respect for the special rights interest in the High North was shaped by the and responsibilities of coastal states. The fact that logic of the Cold War and the region’s inaccessibil- the coastal states agree on the international rules ity. is a good starting point. It will be important for The High North is still an area of strategic mil- Norway to further strengthen and consolidate this itary interest, among other things because a large consensus internationally through its High North proportion of Russia’s nuclear forces are located diplomacy. there and the region is used as a site for military The Government has used the catchphrase exercises involving important aircraft and naval “High North – low tension” in developing its High units. In NATO, Norway has promoted a renewed North policy and presenting the main features of focus on the Alliance’s core areas – including this policy internationally. During the Cold War, those in the north – based on long experience that the High North was marked by the risk of con- a clear security policy creates stability and predict- frontation between the major powers. Nonethe- ability for all parties. less, Norway and Russia were able to resolve Norway considers it important to continue the practical problems in a pragmatic way. Close, development of close, predictable cooperation pragmatic cooperation between Norway and Rus- with Russia in the north. Our vision is to develop sia will continue to be an important priority in the our neighbourly relations to the same level of years ahead. openness and trust we enjoy with our Nordic Climate change, greater access to natural neighbours. resources and growing human activity suggest The Norwegian Joint Headquarters has been that the High North will be a region of consider- moved to Bodø, and the focus of the Armed able geopolitical interest. The Government’s over- Forces’ resources and activities has been moved all objective is to make use of the opportunities 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 19 The High North this offers, and at the same time manage the envi- cise sovereignty in a consistent and predictable ronment and natural resources sustainably, and manner in the years ahead, and will be a driving maintain the High North as a peaceful and stable force for cooperation with other countries in a region. Norway will therefore continue to exer- spirit of openness and trust. 20 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

2 Strategic priorities and results

Figure 2.1 Bridge between Sommarøy and Hillesøy in Troms. Photo: iStockphoto.

2.1 Main objectives of the High North – to strengthen international cooperation and the policy international legal order; – to strengthen the basis for employment, value The High North is Norway’s most important stra- creation and welfare throughout the country tegic foreign policy priority, as set out in the Gov- by means of a regional and national effort in ernment’s first and second policy platforms. cooperation with partners from other countries In Chapter 1 the Government outlined the and relevant indigenous groups. main elements of the High North policy for the period 2011 to 2030. The Government’s High North strategy can be The key policy objectives of Norway’s High summed up in three words: knowledge, activity North policy are: and presence:1 – to safeguard peace and stability and provide Knowledge: The Government’s ambition is predictability; for Norway to be a leader in the field of know- – to ensure an integrated, ecosystem-based man- ledge in and about the High North. Knowledge is agement regime that safeguards biodiversity and provides a basis for sustainable use of resources; 1 The Government’s High North Strategy (2006). 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 21 The High North defined as being at the core of Norway’s High – Norway played an active role in the establish- North policy. ment of the world’s largest ever polar research Activity: The Government’s ambition is for programme, the International Polar Year (IPY Norway to be at the top of the league in key areas 2007–2008). The Storting allocated NOK 330 of economic activity and the best steward of the million to Norwegian efforts under IPY, includ- environment and natural resources in the north. ing 27 Norwegian research projects and This requires close cooperation between national, research cruises with the vessel G.O. Sars in regional and local authorities, and businesses and the Southern Ocean. relevant research communities. – Research projects on geopolitics in the High Presence: The Government’s ambition is for North and Asia’s role in the High North have Norway to have a presence in all parts of Norwe- been established under the Research Council, gian territory and in Norwegian sea areas in the and are being supported via Barents 2020, with High North through policies to encourage settle- grants totalling NOK 28 million over a five-year ment, value creation, nature management, period and NOK 15 million over a three-year employment and culture in North Norway, both period, respectively. by using civilian capacities and by maintaining a – Closer educational and research cooperation military presence. with Russia, Canada and the US, including 196 High North grants awarded since the scheme was established in 2007. 2.2 Strategic priorities and results – Active follow-up of labour and trade associa- tions and education and research institutions to In order to achieve the main objectives of its High build up knowledge about challenges and North policy, the Government has identified a opportunities in the High North. number of strategic priorities that can be sum- – Strong North Norwegian networks have been marised in 15 points. The following is an overview established through closer cooperation of the most important results achieved so far and between institutions in the region as part of the Government’s future priorities for each of the Norway’s general policy for improving higher 15 areas. education and research. – Focus on research through the establishment of 1. The Government will seek to ensure that a system of regional research funds. In North Norway is a leader in the field of knowledge in Norway, projects on climate change adaptation, and about the High North regional welfare and cross-border regional developments have been given priority. Results: – Development of centres of expertise in Sval- – A considerable boost for climate and environ- bard, including improvements to research mental research. The Fram Centre (High infrastructure and capacity at the University North Research Centre for Climate and the Centre in Svalbard (UNIS). The Universities of Environment), based in Tromsø, is a leading Tromsø and Nordland increased the number of international research hub that was opened in student places in 2009 and 2011. 2010. It consists of 19 institutions, including the – International research activity in Svalbard has Norwegian Polar Institute’s Centre for Ice, Cli- reached record levels. Ten nations have mate and Ecosystems (ICE). These institutions research stations in Ny-Ålesund, and almost are cooperating on research in five priority half the students at UNIS are foreign nationals. areas involving about 500 scientists. – Norway has initiated the establishment of the – Substantial annual funding to close gaps in Svalbard Integrated Arctic Earth Observing knowledge so that we can address challenges System (SIOS), a unique system in which and take advantage of opportunities in the almost 20 countries are involved. High North. The grant scheme Barents 2020 was established in 2006. From the first pay- ments in 2007 and up to and including 2012, a Future priorities: total of NOK 303 million has been allocated to – Further develop the institutions involved in the 56 projects. Fram Centre in Tromsø so that they can main- – A new polar research programme under the tain their position as internationally leading Research Council of Norway was established centres of expertise in climate and environ- in 2011 with an allocation of NOK 45 million. mental research in the High North. 22 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

– The Government intends to acquire a new ice- class research vessel based in Tromsø. More Future priorities: information about the timing of this acquisition – The helicopter base at Bardufoss will be fur- will be given later. ther developed by concentrating helicopter – Increase the involvement of research groups in capacity for maritime operations at the air sta- North Norway by ensuring that at least 50% of tion there. grant funding through the Barents 2020 – Exercise activities in the north with allies and scheme goes to projects in which such also with other important partner countries will research groups are included. be further developed. – Initiate a survey of the performance of Norwe- – The army is planning to expand its exercise gian knowledge institutions in education and activities in 2011 and 2012. Much of this activity research related to the High North, with a view will take place in the north. to developing closer cooperation and coordina- – The Coast Guard gives priority to the northern tion between them, and finding a sound divi- seas, and according to plan will dedicate almost sion of responsibilities to ensure high quality 2?500 patrol days a year to these areas in 2011 and good use of resources. and 2012. – Research and higher education will continue to – The activity of the Coastal Squadron (frigates, be one of the pillars of Norwegian activity in Skjold-class corvettes, mine-clearance vessels, Svalbard. submarines) in the north is rising steadily as new vessels are phased in. Sailing time (days) 2. The Government will ensure that Norway is expected to double from 2008 to 2012. exercises its sovereignty and authority in the – The NH-90 helicopters will continue to be High North in a credible, consistent and phased in. predictable manner – In 2012, construction of the first of two new bor- der stations for the border guards on the Nor- Results: wegian–Russian border will be started. – The focus of the armed forces has been shifted – Military cooperation with Russia will be further northwards: the Norwegian Joint Headquar- developed. ters has been moved from Stavanger to Bodø, and the headquarters of the Coast Guard will 3. The Government will seek to ensure that be located in Sortland from 1 January 2012. Norway is the best steward of the environment – The Government has strengthened Norway’s and the natural resources in the High North capacity to exercise sovereignty and authority in the north by increasing operational activity. Results: – Five new frigates have been purchased, – A management plan for the Norwegian Sea and improving Norway’s capacity in the vast sea an updated management plan for the marine areas in the north. environment of the Barents Sea–Lofoten area – The Coast Guard’s fleet structure has been have been drawn up. The management plans updated through the purchase of modern have attracted international attention and are multi-purpose vessels. In particular, surveil- resulting in a greater focus on resource man- lance capacity and mobility have been agement in the High North. improved, and will be improved further as NH- – Jan Mayen and its territorial waters have been 90 helicopters are phased in for use on helicop- protected as a nature reserve, and the ter-capable vessels. Bjørnøya nature reserve has been extended to – Entered into an agreement on cooperation in the 12-nautical-mile territorial limit. the field of security, defence and preparedness – A prohibition on the use of heavy bunker oil by with Iceland (2007), which encompasses coop- ships sailing in the protected areas in Svalbard eration on search and rescue services, civil has been introduced. emergency preparedness and defence activi- – The new Act relating to the management of bio- ties. logical, geological and landscape diversity (the – Extensive contact has been established Nature Diversity Act) has been passed. between Norwegian and Russian forces in the – 53 000 km2 of the seabed has been mapped north. Joint Norwegian–Russian maritime under the MAREANO programme in the Bar- exercises – the “Pomor exercises” – were car- ents Sea–Lofoten management plan area. ried out in 2010 and 2011. 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 23 The High North

– The research initiative on the impacts of cli- – Cooperate with Finland on measures for sus- mate change on fish stocks, ecosystems and tainable fisheries and to rebuild the weak aquaculture has been continued, for example salmon stocks in the Tana river system. within the framework of a research programme under the Institute of Marine Research. 4. The Government will improve monitoring, – Efforts to build up knowledge on the manage- emergency preparedness and response and ment of wild living marine resources within the maritime safety systems in northern sea areas framework of broad-based cooperation pro- grammes involving various institutions have Results: been intensified. – A vessel traffic service centre was established – A joint Norwegian–Russian environmental sta- in Vardø in 2010. This is a national centre of tus report for the Barents Sea has been drawn expertise on maritime safety, oil spill prepared- up, and work has started on joint Norwegian– ness and response and monitoring. Russian environmental monitoring activities – Substantial strengthening of oil spill response for the Barents Sea. capacity through systematic replacement of oil spill equipment since 2006. – Barents Online: the Norwegian National Future priorities: Coastal Administration is coordinating work on – Follow up national targets and international the maritime surveillance and information sys- commitments related to the climate and envi- tem BarentsWatch, which is designed to pro- ronment, and continue to set high environmen- vide reliable services for both public and pri- tal and safety standards for commercial activi- vate users. ties, based on the precautionary principle, the – Norway has been at the forefront of efforts to principle that cumulative environmental effects draw up the first internationally binding agree- must be assessed, the provisions of the Nature ment to be negotiated under the auspices of the Diversity Act on conservation and sustainable Arctic Council – the Arctic Search and Rescue use, and the Svalbard Environmental Protec- Agreement, which was signed at the ministe- tion Act. rial meeting in Nuuk in May 2011. The agree- – Continue to play a leading role in developing an ment sets out the geographical area for which integrated, ecosystem-based marine manage- each country is responsible. ment regime, and encourage all countries with jurisdiction over sea areas adjacent to Norwe- gian areas to develop integrated management Future priorities: plans. – The BarentsWatch public information portal – Work towards the inclusion of climate change will come into operation in 2012, and work on adaptation as a key topic for the Arctic Council the closed system will be continued in close and other cooperation forums in the High cooperation with government agencies that North, and towards the development of Arctic have operational responsibility at sea. The climate change adaptation strategies. operation and development of the public infor- – Establish targeted global and regional coopera- mation portal will be based in Tromsø. tion to ensure protection of particularly vulner- – Norway is at the forefront of efforts to develop able areas and species. binding rules for shipping in polar waters (the – Take steps to reduce emissions of short-lived Polar Code) under the auspices of the Inter- climate forcers in the High North. national Maritime Organization (IMO). – Seek to ensure that knowledge about climate – Further development of oil spill preparedness change in the High North is disseminated and and response. is given priority in the international climate – Norway will promote closer regional coopera- negotiations. tion on oil spill preparedness and response – Strengthen cooperation with Russia on the through the Arctic Council. marine environment with a view to establishing – Improving maritime safety: an integrated Norwegian–Russian monitoring – Start operation of the new meteorological programme for the Barents Sea. radar at Gednje on the Varanger Peninsula. – Aim to complete mapping of the seabed in the – The introduction of pilot services in Sval- Barents Sea–Lofoten area by 2020. bard has been proposed. 24 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

– Stronger presence: – A strategic energy partnership has been devel- – Continue work on the acquisition of new oped on the basis of an extensive energy dia- rescue helicopters with a view to having logue with Russia that includes follow-up of the them in place by 2020. delimitation agreement with regard to any off- – Strengthened capacity in Svalbard: shore oil and gas discoveries that extend – As of 2014, the Governor’s helicopter ser- across the delimitation line. vice is to have two large helicopters and bet- – Extensive contact has been established ter response time.2 between Norwegian and Russian forces in the – High level of preparedness: north. Joint Norwegian–Russian maritime – Continue efforts to improve maritime exercises – the “Pomor exercises” – were car- safety and emergency preparedness and ried out in 2010 and 2011. response for acute pollution in the High – Important steps have been taken to make North. things easier for businesses and individuals – Better knowledge: involved in cross-border cooperation with Rus- – Continue charting activities based on prio- sia, for example through the provision of work rity needs for research and transport in the permits for unskilled labour and simpler visa region, for example through the coopera- procedures (the “Pomor visa”). tion on Arctic nautical charting. – The Barents Secretariat’s cross-border pro- jects (3 200 projects since 1993) have contri- 5. The Government will strengthen and further buted to a considerable strengthening of develop cooperation with Russia people-to-people cooperation with Russia. – Norwegian–Russian cooperation in areas such Results: as education, environment, health, fisheries – After 40 years of negotiations, a historic agree- management and business operations has been ment has been concluded with Russia on mari- strengthened. time delimitation in the Barents Sea and the – Support has been provided for Norwegian fish- Arctic Ocean. The clarification of the delimita- eries organisations’ cooperation and dialogue tion line is a milestone and opens up new with their sister organisations in Russia. opportunities for cooperation. Norway and – Nuclear cooperation in northwestern Russia: Russia now have a land border from 1826 and a Norway has contributed to the dismantlement maritime boundary from 2011. of five decommissioned nuclear submarines, – Trade has increased from NOK 13.6 billion in one of these together with the UK. All of the 2005 to NOK 17 billion in 2010. 180 radioactive power sources for lighthouses – Substantial increase in cross-border contact. have been removed and replaced by solar pan- The number of border crossings at Storskog els. has increased from around 8 000 in 1990 to – Substantial increase in the number of Russian 107 000 in students in Norway – from 526 in 2005 to 1 175 – 2005, and is expected to be around 190 000 in in 2010. 2011. – The Norwegian Ministry of Education and – After a slow start, economic cooperation in the Research and the Russian Ministry of Educa- north has increased considerably: 40 Norwe- tion and Science have signed an MoU on coop- gian companies have now established opera- eration in the field of higher education. tions in Murmansk. – Environmental cooperation with Russia has – An honorary consulate was re-established in been strengthened in the areas of integrated Arkhangelsk in September 2010. marine management, biodiversity and environ- – Norway’s diplomatic presence in Russia has mental monitoring in the border areas, as well been strengthened through a reallocation of as responsible management of persistent, bio- resources in the Foreign Service. accumulative and toxic substances. – An agreement has been negotiated on local – Broad cooperation has been established in the border traffic permits that facilitate cross- field of health, for example on infectious border contact for those who live near the Nor- diseases, coordination of primary and wegian–Russian border. specialist health services and the promotion of a healthy lifestyle. 2 See Prop. 146 S (2010-2011). 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 25 The High North

– Extensive cooperation has been established 6. The Government will strengthen and further through the multilateral programme Children develop cooperation with the other Arctic and Youth at Risk in the Barents Region countries and intensify dialogue with other (CYAR). partners who share our interests in the region Results: Future priorities: – Through our High North diplomacy, Norway – The Government intends to build a new border has helped to increase international attention station at Storskog in Sør-Varanger. More infor- on and understanding of developments in the mation about the timing of this will be provided north. at a later stage. – Norway has strengthened its position as a key – Capacity at the border control station at Stor- player in the High North. skog will be increased through immediate – We have established extensive High North dia- measures to be implemented during the winter logues with the member states of the Arctic 2011/2012. These include increasing the num- Council, and we have held dialogues with ber of in-coming and out-going lanes and con- emphasis on energy with Germany, France, the trol booths, installing equipment for electronic UK, Spain, Poland, the Netherlands and Italy. passport control and language training. An – We have started dialogues with certain Asian increased police presence at Storskog in 2012 countries (China, Japan, South Korea) on has been proposed. issues relating to the High North. – The Government will review the visa applica- – We have entered into a cooperation agreement tion process with a view to further easing visa with Iceland on High North-related research, procedures for Russian citizens within the and have established a three-year guest profes- framework of the Schengen cooperation dur- sorship at the University of Akureyri. ing the current parliamentary term. – Norway maintains close contact with various – The Government aims to implement the local EU bodies on developments in the High North. border traffic regime in the first half of 2012. – We have signed a declaration on -cooperation – The Government will continue its efforts to with the Home Rule Government of Greenland ensure that the major emissions from nickel (Naalakkersuisut). production in the Pechenga region of the Kola Peninsula are eliminated. – The Government will follow up the many con- Future priorities: crete proposals for cross-border cooperation – Help to shape the agenda and promote Nor- set out in the joint declaration on cross-border wegian views and interests in the High North cooperation3 and the work plan for strengthen- and the Arctic. ing Norwegian–Russian cross-border coopera- – Establish a coordination forum for the leaders tion for the period 2011–2015.4 of Nordland, Troms and Finnmark county – A strategy for business sector cooperation with councils and the President of the Sami Parlia- Russia will be presented in 2012. ment to exchange information and facilitate the – Efforts will be made to further increase labour implementation of large-scale projects. This is mobility between Norway and Russia. to be led by the Minister of Foreign Affairs. – Continue existing dialogues with emphasis on developing concrete cooperation projects with other countries. – Enter into an agreement with the UK on closer cooperation on polar research and cultural her- itage. – Intensify the dialogue with the countries and organisations that are seeking permanent 3 Joint declaration by the Norwegian and Russian foreign observer status in the Arctic Council (China, ministers on strengthening Norwegian–-Russian coopera- Japan, South Korea, Italy, the European Com- tion (2 November 2010). mission). 4 Work plan to create favourable legal, trade, economic and other conditions for strengthening Norwegian–Russian – Strengthen concrete cooperation with North cross-border cooperation, 2011–2015 (February 2011). Sweden and North Finland. 26 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

7. The Government will seek to strengthen 8. The Government will continue to promote cooperation in the Arctic Council and in implementation of the Law of the Sea and to regional forums such as the Barents further develop standards and legislation in Cooperation and the Northern Dimension relevant areas Results: Results: – A permanent secretariat for the Arctic Council – Through its active High North diplomacy, Nor- will be established in Tromsø by 2013. This will way has contributed to the understanding of strengthen cooperation in the Arctic Council as the fact that the Law of the Sea constitutes the well as Norway’s position in Arctic cooperation overall legal framework for the Arctic Ocean. and policy development. – At a meeting in Oslo in October 2007 between – The first legally binding agreement between the five coastal states bordering the Arctic the member states of the Arctic Council has Ocean a common understanding was reached been entered into (the Arctic Search and Res- regarding the basic legal principles governing cue Agreement). the Arctic. – The Arctic Council’s global role has been – Norway participated actively in the develop- strengthened through the establishment of cri- ment of the Ilulissat Declaration (2008), which teria for the admission of permanent observ- sets out that the five coastal states bordering ers. the Arctic Ocean (Canada, Denmark, Russia, – Partnerships in the areas of environment, the US and Norway) recognise that the Law of health, transport and logistics, and culture the Sea provides the framework for national have been established through the Northern measures and cooperation in the Arctic Ocean, Dimension (cooperation between the EU, Ice- and that they remain committed to the orderly land, Norway and Russia). settlement of any possible overlapping claims. – Final clarification of the extent of our continen- tal shelf. Norway is the first Arctic state to Future priorities: receive recommendations from the Commis- – Norway is to be a driving force in strengthen- sion on the Limits of the Continental Shelf. ing the Arctic Council and is to work for more – The maritime delimitation treaty with Russia binding cooperation on relevant areas between entered into force on 7 July 2011. members and observers. – Negotiations on oil spill preparedness and response in Arctic areas. A report on the status Future priorities: of this work is to be presented at the Arctic – The Government will continue to work for full Council’s ministerial meeting in 2013. implementation of the Law of the Sea and to – We will work for the admission of more coun- help to increase respect and support for its tries as permanent observers to the Arctic principles through active diplomacy. Council. – The Government will contribute to the develop- – The Barents Cooperation will be further devel- ment of binding requirements for shipping and oped through Norway’s chairmanship of the maritime operations in Arctic waters through Barents Euro-Arctic Council in 2011–2013. The the establishment of the Polar Code under the main priority is to promote the Barents region auspices of the International Maritime Organi- as a region for innovation and environmentally zation (IMO). sound management of resources based on knowledge. 9. The Government will facilitate the further – A new, updated political declaration is to be development of a sustainable fisheries and drawn up for the 20th anniversary of the Bar- aquaculture industry in the High North ents Cooperation in 2013 outlining our future cooperation. Results: – We will promote closer coordination of and syn- – Large-scale illegal, unreported and unregu- ergy between the various regional forums for lated fishing (IUU fishing) has been eliminated cooperation. in the Barents Sea through successful coopera- – We will seek to strengthen the parliamentary tion with Russia. In 2009 and 2010, no IUU fish- dimension of Arctic cooperation. ing of cod or haddock was registered. 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 27 The High North

– A national strategy for marine bioprospecting was launched in 2009. The Government will Future priorities: promote innovative value creation through tar- – Facilitate expansion of oil and gas activities in geted work on marine bioprospecting, the Norwegian part of the southern Barents – The Government has been involved in the Sea, among other things by initiating an impact establishment of a breeding centre for cod, an assessment in accordance with the Petroleum aquaculture research station and fish health Act, with a view to granting production licences laboratory in the Tromsø area and a national for the previously disputed area west of the centre for capture-based aquaculture at Nofima delimitation line in the southern part of the in Tromsø. Barents Sea (south of 74°30’ N). – If this is justified by the conclusions of the impact assessment, the Government will pres- Future priorities: ent a white paper recommending that these – Continue the close Norwegian–Russian coop- areas should be opened for petroleum activity. eration on management of the fish stocks in the – Build up knowledge about potential impacts of Barents Sea, and seek to develop cooperation petroleum activities in the unopened parts of with other countries and relevant organisations Nordland IV, V, VI, VII and Troms II and collect to improve the management regime further. geological data on the unopened parts of Nord- – Encourage further restructuring and innova- land IV. tion in the seafood industry. – Facilitate increased activity that will have spin- – Facilitate growth of the aquaculture industry in off effects in North Norway, including boost- North Norway within environmentally sustain- ing employment and building up knowledge able limits. clusters. – Enhance expertise in the seafood industry, and – Ensure that new discoveries result in maxi- strengthen recruitment. mum value creation for society and promote – Implement the national strategy for marine bio- local and regional spin-off effects. prospecting. – Promote the development of expertise and – Continue monitoring of contaminants in fish cooperation so that Norwegian companies can from the northern sea areas and farmed fish. take part in the expected activity on areas of – Continue the cod breeding programme run by the continental shelf under other countries’ Nofima. jurisdiction in the High North. – If major new discoveries are made, consider 10. The Government will facilitate the sound the potential for the profitable use of gas in utilisation of the oil and gas resources in the onshore industries and look at how new infra- High North structure can be developed. – Play a part in the development of health, envi- Results: ronment and safety standards for Arctic oil and – A record level of oil and gas activity has been gas activities. reached in the north, and new areas have been opened up for exploration. The framework for 11. The Government will facilitate safe petroleum activities is set out in the white maritime transport and maritime business paper on petroleum activities and the updated activities in the High North management plan for the Barents Sea–Lofoten area. Results: – Geological surveys of the area west of the – The Centre for High North Logistics (CHNL) delimitation line between Norway and Russia has been established as an international know- in the Barents Sea have been started. ledge hub for businesses, research institutions – The opening process and environmental and authorities so that they can develop effec- impact assessment for the Jan Mayen area tive and sustainable logistics solutions for have been initiated. Seismic surveys have been northern sea areas. started. – Concerted effort to boost maritime education – Survey of the suitability of ports in eastern in North Norway: Finnmark for a new oil terminal. Several ports – Maritime education programmes at the have been assessed, but Kirkenes is the only University of Tromsø and a number of existing port that meets the requirements. 28 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

North Norwegian technical colleges have industry and international marketing of North been strengthened. Norway. – A professorchip in sustainable maritime – Support has been provided for studies on the transport has been established at the importance of the mineral industry for the Department of Marine Technology at the High North and the potential for Nordic Norwegian University of Science and Tech- cooperation. nology (NTNU). – Support has been provided for the establish- – A bachelor programme in international pre- ment of a professorship in economic geology at paredness has been started at the Norwegian the University of Tromsø. Fire Protection Training Institute, in coopera- tion with Narvik and Harstad University Col- leges. Future priorities: – The Government’s maritime strategy has – We will facilitate increased value creation and resulted in the allocation of substantial funding human activity in the north while ensuring that for the development of expertise on maritime environmental value and biodiversity are main- activities in the High North. tained. – The Government announced in a white paper on state ownership that it would put forward a Future priorities: proposal on the establishment of a number of – Northern marine and coastal areas are becom- new country-wide seed money funds. One of ing increasingly accessible for shipping. The these will be established in North Norway. Government will establish a group of experts – We will facilitate the utilisation of mineral to examine how Norwegian interests can best resources in the High North through the pre- be safeguarded in the light of this. sentation of a strategy for the mineral industry – Norway will play an active role in the develop- in spring 2012. ment of international rules, industry standards – The mineral sector will be one of the main pri- and knowledge and in information sharing to orities of the Norwegian chairmanship of the reduce the risk of accidents and acute pollu- Barents Euro-Arctic Council in 2011–2013. tion. – Continue the five-year programme (NGU) to – The Government’s maritime strategy and survey mineral resources in the High North, MARKOM2020, which is a cooperation project 2011–2015. within higher maritime education, will be – Continue development of the knowledge base implemented. for incorporating environmental concerns into – Allocations for building up expertise will be onshore business development. continued. – Further develop business cooperation with Russia, between North Norway and neighbour- 12. The Government will promote onshore ing areas of Sweden and Finland, and with business development in the High North other countries within and outside the High North. Results: – Continue efforts to promote entrepreneurship – We have ensured that the scheme for differen- and innovation among young people, giving pri- tiated employers’ national insurance contribu- ority to travel and tourism and Arctic technol- tions can be continued in agreement with the ogy. EU. – Maintain focus on the travel and tourism indu- – We have initiated a survey of mineral resources stry in North Norway and Svalbard. in Nordland, Troms and Finnmark (by the Geo- – Promote further cooperation and coordination logical Survey of Norway (NGU)) with a view between actors in the travel and tourism indu- to possible industrial development and value stry, and support the development of Nord- creation. norsk Reiseliv AS as a tool in this work. – Nordnorsk Reiseliv AS has been established to strengthen the profile of the tourism and travel 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 29 The High North

13. The Government will further develop an interest on the part of the mineral-based infrastructure in the High North, both industry in other measures, and intensify coop- independently and in cooperation with our eration with our neighbouring countries on the neighbouring countries, with a view to Ofoten Line. supporting business development Results: 14. The Government will seek to ensure that Norway’s High North policy continues to – Considerable increase in investment in new safeguard the culture and livelihood of roads and maintenance of the road network in indigenous peoples North Norway. – The project on infrastructure in the north, Ny Results: infrastruktur i nord, has submitted its report – Regular meetings have been held with the and proposed a number of measures to Sami Parliament (Sámediggi) on High North- improve infrastructure in the north. The report related matters. The Ministry of Foreign was commissioned in connection with the prep- Affairs has regular half-yearly consultations aration of a new national transport plan for with the Sami Parliament at political level. 2014–2023. – Grant schemes have been introduced to enable – The space-related infrastructure has been fur- representatives of indigenous peoples to partic- ther strengthened with the launch in 2010 of ipate and have a say in the regional political the first Norwegian satellite (AISSat-1), processes in the Arctic Council and the Bar- designed to receive AIS signals from ships. ents Cooperation. – The AIS satellite has improved surveillance of – It has become established practice for the Pre- maritime activities in northern waters. sident of the Sami Parliament to deliver part of – Norway has participated in the development of the Norwegian statement at ministerial meet- the European satellite navigation system Gali- ings in the Arctic Council and the Barents leo. Euro-Arctic Council. – Norway and Russia signed a joint declaration in 2010 where the focus is inter alia on strength- Future priorities: ening contacts between indigenous groups, – Follow up the National Transport Plan 2010– revitalising and preserving indigenous peo- 2019, which includes a number of projects of ples’ traditional culture and livelihoods and major strategic importance for the develop- safeguarding their quality of life. ment of the High North. – We have helped to ensure that Sami culture – Work to establish transport infrastructure and indigenous culture are one of five focus between Norway and our neighbouring coun- areas in the three-year cultural cooperation tries to link different parts of the Barents programme between Norway and Russia for region more closely together. the period 2010–2012. – Follow up proposals for concrete improve- – The Sami Science Centre in Kautokeino has ments to the transport infrastructure in the been completed. We have implemented mea- north in connection with the national transport sures to strengthen tuition in the Sami lan- plan for 2014–2023. guages and improve recruitment to Sami – Further develop the electricity infrastructure teacher training programmes. in the north with a view to improving security – A pilot project entitled Árbediehtu has been of supply and meeting growing energy needs. started at the Sami University College on docu- This will be done both by upgrading the trans- mentation, preservation and use of traditional mission grid between southern Norway and Sami knowledge. North Norway and through cooperation with – We have provided support for a number of mea- our neighbouring countries. sures aimed at promoting the culture and live- – Maintain focus on space-related activity in the lihoods of indigenous people. High North. – The International Centre for Reindeer Hus- – Continue Norwegian participation in the devel- bandry (ICR) has been established to opment of the European satellite navigation strengthen international cooperation on rein- system Galileo. deer husbandry in Arctic areas in cooperation – Clarify whether there is a commercial basis for with reindeer herders and their organisations. upgrading the Ofoten iron ore railway line and 30 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

Figure 2.2 Cod fishing, Røst. Photo: Berit Roald / Scanpix.

– The Centre for Northern Peoples opened in 15. The Government will further develop Kåfjord in Troms in 2011. cultural and people-to-people cooperation in the High North Future priorities: Results: – Ensure that representatives of indigenous peo- – The BarentsKult fund has been established to ples’ organisations are given sufficient oppor- provide support for a large number of Nor- tunity to participate in processes and decisions wegian–Russian cultural projects. that affect indigenous peoples. – A large number of people-to-people projects – Intensify international cooperation on research have been supported by the Barents Secreta- on the impact of climate change on indigenous riat. peoples’ livelihoods. – Active support has been provided for various – Ensure that business activities that affect indig- cultural festivals: the Northern Lights Festival enous peoples’ interests are carried out in a and Tiff in Tromsø and Barents Spektakel in sustainable way, and that there is a close dia- Kirkenes. Efforts are being made to logue between the companies, authorities and strengthen these festivals’ international net- indigenous people’s organisations concerned. works. Seek to ensure that increased industrial activity – Support has been provided for voluntary initia- in indigenous peoples’ areas also creates jobs tives with a view to fostering broad engage- for the indigenous population. ment and strengthening civil society in the – Initiate a cross-border regional project to docu- region. ment traditional Sami knowledge in the Nordic – Through the Barents Euro-Arctic Council’s countries and Russia. working group on youth policy cooperation, – Start developing ethical guidelines for eco- close cooperation has been established to pro- nomic activities in the north. mote and provide administrative and economic support for exchanges of groups of children and young people in the Barents region. Fund- 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 31 The High North

ing is also provided for other multilateral pro- organisations, and for efforts to promote a free jects for children and young people. press. Support will also be provided for Nor- wegian–Russian trade union cooperation. – Greater emphasis will be given to measures to Future priorities: strengthen economic ties and growth with a – Support will continue to be provided for people- view to strengthening the basis for employ- to-people projects through the Barents Secre- ment and settlement. tariat. – Support for cultural projects in the Barents – Support will be provided for Russian civil soci- region will be continued. ety and environmental and human rights 32 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

3 An integrated High North policy

Figure 3.1 The Arctic Ocean. 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 33 The High North

3.1 A targeted High North policy Norway’s interests in the High North, the entire nation’s knowledge, resources and experience The High North today is characterised by stability must be mobilised. Restricting participation to and cooperation. However, in the time ahead, sig- groups and interests in North Norway would nificant climate change, a growing demand for undermine Norway’s influence in the High North. natural resources and more intensive use of sea This is why the Government will seek to inten- areas are expected in the region. The region is sify cooperation between relevant knowledge facing significant changes related to the climate, institutions and business communities throughout the growing demand for natural resources and Norway. It will also encourage closer cooperation increased use of the sea areas. In the Govern- with similar actors in other countries. A good ment’s view it is essential to maintain and intensify example of this is the cooperation agreement con- the close cooperation that exists in the region cluded between Rogaland county and Murmansk today and to continue to disseminate knowledge oblast on sharing experience, developing policy, about developments in the region to the interna- network building and business cooperation in the tional community. This is being done, for example, petroleum sector,1 which has also been signed by through active High North diplomacy and cooper- Finnmark and Troms counties. ation aimed at putting Arctic issues on the agenda There are close links between Norway’s High in important international processes. North policy and its policy in other areas. For The High North is home to abundant natural example, Norway’s regional, transport, business, resources and offers considerable opportunities, petroleum, environmental, fisheries and Sami pol- but it is also vulnerable to many different environ- icy – and policy in many other areas – are all vital mental pressures. The Government’s aim is to for settlement, employment and value creation in facilitate close and inclusive cooperation with North Norway. The High North perspective must actors that wish to participate in developing the also be integrated into policy development in potential of the region. The Government will give other areas in order to ensure an integrated High higher priority to the value creation dimension in North policy. its High North policy. The main drivers of devel- As described in the introduction, the present opment of the region must be the interests and white paper focuses primarily on the foreign pol- needs of the states in the High North and the peo- icy dimension, while other aspects of Norwegian ple living there. The aim should be to promote policy in the High North are dealt with in other sustainable social, cultural and economic develop- white papers. The most recent white paper on ment and respect for the environment and indige- Svalbard (Report No. 30 (2008–2009) to the Stor- nous peoples’ interests and rights. ting) sets out the main features of the Govern- Both the general public and the business sec- ment’s policy for the archipelago. The overall tor are strongly engaged in developing contact objectives of Norway’s Svalbard policy were estab- and cooperation in the Barents region. Regional lished by the white paper and the subsequent authorities, indigenous peoples’ organisations and Storting debate and recommendations (Recom- the Barents Secretariat play an important role in mendation S. No. 336 (2008-2009)). For example, coordinating and furthering this cooperation. It is all activity in Svalbard must be carried out in crucial that regional and local actors are actively accordance with the ambitious environmental tar- involved in defining the objectives for the develop- gets established for the archipelago. ment and management of the High North and that The present white paper therefore deals with they themselves devise policies and tools for real- those aspects of Norway’s Svalbard policy that it ising the opportunities and meeting the chal- is natural to discuss when taking a High North lenges there. perspective, but within the framework of the over- In the Government’s view, it is particularly all objectives established as described above. important to intensify cooperation between Nor- way’s three northernmost counties. However, a wider perspective is needed. In order to safeguard 1 Signed in Murmansk on 11 February 2011. 34 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

Table 3.1 Economic and social conditions in Arctic regions

Life Personal Total Population Indigenous expec- disposable population density peoples Young people tancy Education income Indigenous Tertiary USD, peoples as Children aged education corrected for share of 0–14 years as graduates as purchasing total share of total share of total power parity population population population (PPP) 1000s People/ km2 %%Years%USD Region 2008 2008 2006 2006 2008 2006 2008 Alaska 688 0.46 13.1 21.5 77.1 24.7 40 031 Arctic Canada 108 0.03 67.5 29.1 75.8 15.4 31 535 Greenland and Faroe Islands 105 0.25 48.0 23.9 74.0 10.5 16 442 Iceland 319 3.18 - 21.8 81.3 23.5 22 367 North Norway 463 5.49 1.4 19.6 80.2 21.8 18 075 North Sweden 508 3.30 1.8 15.9 80.8 16.5 17 335 North Finland 652 4.36 0.2 18.8 78.7 22.1 16 532 Northern Russia 7 081 0.80 2.0 18.6 67.8 14.2 14 407 Total 9 925 0.67 3.8 19.0 71.0 16.2 17 108

Table 3.1, which is based on the work of Pro- country to country, ranging from some 16 % in fessor Ilmo Mäenpää of the University of Oulu, North Sweden to 29 % in Arctic Canada. Life shows statistics for the Arctic regions of the five expectancy at birth varies from 68 years in North Nordic countries, the US, Canada and Russia.2 As Russia to 81 years in Iceland. The percentage of indicated in the table, more than 70 % of the total the population who have a university or college Arctic population lives in Russia. However, the education may be used as an indicator of the level population density is highest in the three north- of educational attainment in the population. ernmost counties of Norway, followed by the Alaska has the highest percentage of people with northern regions of Finland and Sweden. a higher education (almost 25 %), whereas Green- The Arctic regions of Canada clearly have the land and the Faroe Islands have the lowest (just highest proportion of people of indigenous origin over 10 %). (more than two thirds)3. The percentage of chil- dren aged 0–14 years varies considerably from 3.2 Geopolitics in the High North 2 The division into regions in this table is the same as that used in the report The Economy of the North, which was The priority Norway is giving to the High North drawn up by Solveig Glomsrød and Iulie Aslaksen, both researchers in Statistics Norway in 2008. The only region must also be seen in a geopolitical context. Actors of the US included in the table is Alaska. Canada: the such as Russia, the US, the EU and China have Yukon Territory and the Northwest Territories, Nunavut. interests in the region and are attaching increas- Denmark: Greenland and the Faroe Islands. Norway: Finn- mark, Troms and Nordland. Sweden: Norrbotten and Västerbotten. Finland: Lapland, the Oulu region and 3 It should be noted that the figures for indigenous peoples Kainuu. Russia: Murmansk, Karelia, Arkhangelsk, Komi, in the northern regions of Norway, Sweden, Finland and Yamal-Nenets, Khanty-Mansia, Taimyr, Evenk, Sakha, Russia are estimates, as there is no census data in these Koryak, Magadan and Chukchi. The whole of Iceland is countries that indicates the ethnic background of Sami or included . other indigenous peoples. 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 35 The High North

Figure 3.2 The population is growing in Svalbard as well. Photo: Mari Tefre

ing importance to them. Norway must keep as the European Commission has made plain that abreast of developments and take them into they are, increased activity on the part of the EU account in safeguarding its interests in the High and other international actors is in Norway’s inter- North. The shifting balance between centres of ests. power that do not always share the same values While the geopolitical centre of gravity is shift- also has relevance for the High North. ing eastwards, climate change is helping to The Arctic seas are still important in geopoliti- shorten the travel distance to Asia via the North- cal terms in the strategic nuclear weapons policies east Passage. Countries in North-East Asia of the US and Russia, in which US warning sys- (China, Japan and South Korea) make up a global tems and the Russian Northern Fleet in particular power centre that is putting its mark on develop- have a central place. This means that the relations ments in the Arctic through political involvement between the major powers in the High North and and investments in business and technology com- the strategic military significance of the Barents bined with long-term research efforts and knowl- Sea for Russia continue to be important factors in edge-building activities. It is important to maintain Norwegian security policy. close dialogue with these countries in order to The EU and key EU countries are showing ensure that Norway is able to position itself as an increasing interest and engagement in the High agenda setter and to gain respect and understand- North. This relates especially to research and ing for Norwegian views and interests in the High environmental policy, but also to fisheries and North. fisheries resources, energy, maritime transport, Although achieving rapid reductions in global climate change and industrial development, and emissions of greenhouse gases is an overriding creates both opportunities and challenges for Nor- goal, fossil fuels will continue to be needed far into way. However, as long as the fundamental rules in this century. It is believed that there are consider- the High North and the existing division of able energy resources in the High North. responsibility between the actors are respected, Whether or not it will be possible to exploit these 36 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North resources will depend on their anticipated future tems and ocean currents, for example in the form price, technological developments, physical of a stronger inflow of warm Pacific water through access to the resources, and environmental chal- the Bering Strait. lenges. A number of countries have strategic This is causing rapid changes to the physical interests in how the energy reserves in the Arctic environment. The transition to an ice-free Arctic are used in the years ahead. Ocean appears to be occurring much faster than The amount of food needed to feed the world’s the Intergovernmental Panel on Climate Change ever-growing population will continue to increase. (IPCC) projected in its Fourth Assessment Report This means that access to sources of protein from in 2007. The summer sea ice cover in the Arctic the sea will be of crucial importance, which in has been reduced by about a third compared with turn underlines the importance of a sound fisher- the average for the period 1979–2000. The ice ies management regime both at country level and thickness and the extent and duration of snow between countries and of a clear understanding of coverage on land have also decreased signifi- the interactions between the extraction of energy cantly. The temperature of the permafrost has resources, the development of new transport risen by up to 2˚C, and the southern limit of per- routes, and the fisheries. Some of the richest and mafrost in Russia and Canada has retreated 30– best managed fish stocks in the world can be 130 kilometres northwards. found in Arctic waters. Recent modelling results indicate that the Arc- Cooperation between the Arctic states is good, tic seas could be almost ice-free during the sum- and it is increasing. In recent years, Norway has mer in as little as 30 years, but there will continue taken a leading role in efforts to consolidate the to be wide variations from one year to another. existing legal order in the Arctic. Norway has The Greenland ice sheet and other ice sheets are been instrumental in strengthening cooperation expected to melt faster than they are doing today. between the five Arctic coastal states and between The thawing of permafrost and reductions in snow all eight members of the Arctic Council. There is coverage are also expected to continue, and ocean widespread agreement that it is the UN Conven- circulation and weather patterns will probably tion on the Law of the Sea that defines rights, change considerably. responsibilities and obligations in the Arctic Reduced ice cover will improve conditions for marine and coastal waters, and that the Arctic shipping and give easier access to natural Council is the main forum for circumpolar cooper- resources, which in turn may lay the foundation ation. for new industrial activities. This makes it all the The Government has focused strongly on put- more important to regulate human activity, focus- ting across its message “High North – low ten- ing on measures that reduce the risk of pollution sion”, and in its view international understanding and accidents. The Government will enhance of this perspective is clearly growing, both among search and rescue capacity and emergency pre- the Arctic countries and in the wider international paredness and response for acute pollution (see community. This concept is fundamental to Nor- Chapter 10). It is making this a priority both way’s High North policy. nationally and internationally, through the Arctic Although cooperation and low tension prevail Council, in cooperation with Russia, and in inter- in the region today, there is always a possibility national organisations such as the International that different countries and actors will have con- Maritime Organization (IMO). flicting interests. Sound cooperation structures Global warming is one of several factors influ- based on trust and openness and an understand- encing ecosystems and living resources in the ing that any disputes will be solved peacefully in High North. The rising concentrations of CO2 in accordance with the Law of the Sea will reduce the atmosphere are also leading to ocean acidifica- the potential for conflict. tion. This could have a major impact on ecosys- tems, and it is anticipated that it will have conse- quences for fisheries and other commercial activi- 3.3 Climate change: a warmer Arctic ties based on the harvesting of marine resources. An increase in maritime traffic and more inten- Over the last decades, temperatures in the Arctic sive resource use may put further pressure on have risen twice as fast as the global average. The ecosystems and species that are vulnerable to cli- annual mean temperature in the region is 2˚C mate change. This increases the need for an inte- higher than it was a hundred years ago. It is also grated approach to managing the northern sea possible to see changes in the Arctic weather sys- areas, based on the principle that cumulative envi- 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 37 The High North

Figure 3.3 The edge of the Austfonna ice cap, Svalbard. Photo: Svein Wik / Scanpix

ronmental effects must be assessed. Climate the melting of the Greenland ice sheet and Arctic change is therefore an important consideration in glaciers. According to the latest report from the the further development of the management plans Snow, Water, Ice and Permafrost in the Arctic for Norwegian sea areas, and for cooperation with (SWIPA) assessment4 under the Arctic Council, the other countries in the region on integrated the global sea level can be expected to rise marine management. between 0.9 and 1.6 metres above the 1990 level Climate processes involving snow, ice, perma- by 2100. frost and ocean circulation in the Arctic will also On the basis of the IPCC’s conclusions, the have a strong influence on how rapidly and in scale of the emissions cuts needed to avoid cli- what way the climate changes globally. The reduc- mate change having very serious impacts has tion in snow and ice and cover in the Arctic inten- been quantified (cf. the target of limiting global sifies both regional and global warming by warming to two degrees Celsius). Norway is increasing absorption of solar energy by the working towards a global climate agreement that Earth’s surface. This is because areas that were is sufficiently ambitious to make achieving the previously covered by snow and ice, which reflect two degrees Celsius target possible. In this con- most of the solar radiation reaching the Earth’s text, Norway will undertake to reduce global surface, are replaced by open sea and bare greenhouse gas emissions by the equivalent of ground. Such areas are darker, and reflect far less 30 % of its own 1990 emissions by 2020. According solar radiation. Furthermore, the warming of the to the agreement on Norwegian climate policy Arctic can lead to a substantial increase in emis- reached by most of the political parties in 2008 sions of the greenhouse gases CO2 and methane (Recommendation No. 145 (2007–2008) to the from melting permafrost on land and on the sea- bed, and in the long run this may result in 4 Snow, Water, Ice and Permafrost in the Arctic (SWIPA), changes in global ocean circulation. More than April 2011, by the Arctic Monitoring and Assessment Pro- 40 % of annual sea level rise globally is now due to gramme (AMAP). 38 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

Storting), a realistic target is to reduce Norwe- ment has therefore emphasised cooperation gian emissions by 15–17 million tonnes CO2 between the Arctic countries, for example within equivalents relative to the reference scenario pre- the framework of the Arctic Council. sented in the 2007 National Budget, when CO2 The Government will continue to give priority uptake by forests is included. The targets set out to these initiatives, and views them as both a con- in the agreement on Norwegian climate policy tribution from the Arctic countries to international were based on mitigation analyses drawn up by efforts to address climate change and as a way of the Climate and Pollution Agency (then called the preparing for the changes that will occur in the Norwegian Pollution Control Authority), current region. In the Government’s view, this is an impor- policy instruments and sectoral climate action tant area for cooperation in the Arctic Council and plans. At the same time, it was made clear that the for other international cooperation in the High sector targets were based on estimates, and would North. In this context, the Government will also have to be reviewed in response to any changes in focus attention on emissions of particulate matter projections, costs, technological advances and and gases with a short atmospheric lifetime, such other relevant factors. The Government intends to as soot (black carbon) and methane, which have a present a new white paper on its climate policy in significant warming effect. Action to reduce these 2012. emissions could therefore help to limit tempera- The climate studies coordinated by the Arctic ture rise, also in the short term. Council are improving the knowledge base for the All those who live, work or are engaged in international climate negotiations and the scien- business activities in the High North will have to tific basis for the IPCC’s work. The 2005 Arctic adapt to climate change. This will require sound Climate Impact Assessment and the 2011 SWIPA social planning based on the best available knowl- assessment are examples of groundbreaking edge on the probable impacts of climate change. research on the impacts of climate change in the With the NorACIA report on climate change in Arctic, the retreat of the sea ice, the melting of the the Norwegian Arctic and the report Adapting to a Greenland ice sheet and the reduction in perma- Changing Climate from a government-appointed frost and snow cover. Together with the other Arc- committee, the Government has made a good tic countries, Norway has a responsibility to dis- start on climate change adaptation at national seminate knowledge and share its experience of level. The Government will address this topic in developments in the Arctic in a credible and con- greater detail in the planned white paper on cli- vincing way in the global climate negotiations. mate change adaptation. The Norwegian Government is furthering The Government will work actively for the knowledge about climate change in the Arctic and inclusion of climate change adaptation as a key its global and regional impacts through national topic for the Arctic Council and other cooperation research initiatives at the Fram Centre in Tromsø forums in the High North. It will also promote the and the Bjerknes Centre for Climate Research in development and implementation of Arctic climate Bergen. The Government is also giving high pri- change adaptation strategies. The Government ority to expanded regional cooperation on moni- has taken the initiative for an overall assessment toring, research and the dissemination of informa- under the auspices of the Arctic Council of the tion to decision-makers and the general public, for combined impacts of climate change and other example through the Sustaining Arctic Observing change in the Arctic, focusing on how to limit Networks process under the Arctic Council. environmental damage and ensure the well-being Although the basic links between greenhouse gas of the people living in the High North. emissions and global warming are well estab- lished scientifically, uncertainty remains as to how fast and in what way the climate will change, and 3.4 Knowledge is at the core of our as to the environmental and social impacts of cli- High North policy mate change globally and regionally. The overall impacts of climate change may therefore turn out Norway has a greater proportion of its population to be either more or less serious than current and economic activities north of the Arctic Circle knowledge and models suggest. The Arctic is an than any other country in the world. It therefore important source of better and more reliable has a particularly pressing need for knowledge knowledge regarding these issues, and coopera- about the High North, and a responsibility to tion between the Arctic countries is crucial for obtain such knowledge. obtaining a sound knowledge bases. The Govern- 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 39 The High North

Figure 3.4 Research cruise to Svalbard, 2010. Photo: Norwegian Polar Institute

Both the Government’s High North Strategy research internationally. It also aims to promote (2006) and the report New Building Blocks in the interdisciplinary research, higher education and North (2009) place knowledge at the core of Nor- the dissemination of information in the fields it way’s High North policy. For Norway to play a covers. The Centre for Ice, Climate and Ecosys- leading role in sustainable management and tems, which was opened in 2009 in Tromsø at the development of the High North, we must have Norwegian Polar Institute, is one of the Fram Cen- broad-based expertise in and about the High tre institutions. The Centre will make a significant North. contribution to research on questions relating to Since the launch of the High North Strategy in melting ice and snow. These issues are very 2006, the Government has been promoting the important in international climate efforts. generation of knowledge and expertise on the Activities under the five flagship research pro- High North. According to the Nordic Institute for grammes at the Fram Centre are well under way. Studies in Innovation, Research and Education, The Centre encourages interdisciplinary research total private- and public-sector funding for High and close cooperation between the natural sci- North research amounted to NOK 2.7 billion in ences, technology and the social sciences. The 2009. A number of initiatives of importance to dissemination of research results and strengthen- social development, value creation, management ing the links between recruitment, education and and foreign policy in the High North have been research are key elements of its activities. launched. Norway has also given strategic priority to the In 2010, the Fram Centre (Fram – High North Bjerknes Centre for Climate Research, which is a Research Centre for Climate and the Environ- national Centre of Excellence in Bergen. The ment) was established in Tromsø as an umbrella Bjerknes Centre and the Fram Centre are cooper- organisation for cooperation between a number of ating to make use of their complementary exper- research institutions. The Fram Centre is tise. intended to be at the forefront of High North 40 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

If Norway is to be at the forefront of knowl- in North Norway provide a good starting point for edge and research on the climate and environ- international cooperation. Svalbard is in an excep- ment in the polar regions, access to an ice-class tional position due to its unique accessibility and research vessel is crucial. A project organisation research infrastructure. has been established, and cooperation agree- Knowledge institutions and businesses ments on running and managing a vessel of this throughout Norway are involved in our High kind have been concluded. According to the qual- North efforts. North Norway has a well-devel- ity assurance procedures that have been carried oped network of universities and university col- out, the project is ripe for realisation, and the rec- leges, which together with a varied research insti- ommendations from the quality assurance pro- tute sector plays an important role in develop- cess will be followed up. ments in the High North. In 2011, North Norway On this basis, the Government has decided in gained its second university, the University of principle that it intends to acquire a new ice-class Nordland. However, research groups at several of research vessel based in Tromsø. More informa- the institutions in the region are still too small and tion about the timing of this acquisition will be vulnerable. In the Government’s view, closer given later. cooperation and a clearer division of responsibili- The changes that are taking place in the High ties between the various research and educational North are creating new opportunities for eco- institutions is needed in order to ensure high- nomic and social development. Knowledge is the quality research and a critical mass of research- key to realising the opportunities in the High ers. The Government has therefore allocated con- North within an environmentally sound frame- siderable funds in order to encourage closer coop- work and to limiting the ecological footprint of eration between the institutions in the region, as economic activity in a vulnerable environment. part of Norway’s general policy for improving Better knowledge about the climate and envi- higher education and research. This includes ronment is therefore of crucial importance for cooperation on the range of courses offered, infra- management, climate change adaptation and structure and administrative services. A pilot proj- social planning in the High North, and will put ect has been launched with a view to coordinating Norway in a position to further improve the man- and strengthening the knowledge institutions and agement of its sea and land areas in the region developing a social contract between the universi- and the resources found there. Since Norway has ties and university colleges in North Norway and direct access to Arctic sea and land areas, as well workplaces and businesses in the region (see as the infrastructure required for conducting Chapter 13.1). This will serve as a framework for research in the High North and major research the work and roles of these institutions in regional communities, it can make important contributions knowledge development. The Government’s aim to international efforts to address climate change. is for this to improve the quality and relevance of More interdisciplinary research and coopera- research, and lead to closer contact between tion between natural scientists, technologists and knowledge institutions, society and the private social scientists is needed to address complex sector. Higher quality and larger research groups challenges. It is also essential to give priority to will make the institutions more attractive for stu- training and the development of expertise to sup- dents and researchers from all over the world and port the research being undertaken. as partners for knowledge institutions in other There is growing international interest in the countries. High North, also on the part of countries without It is important to be able to provide relevant land territory in the region. This is also resulting education and training to the sparse population in in greater interest in cooperation on research and North Norway, in order to meet the region’s need higher education. International cooperation, for expertise. The Government will give priority to makes it possible to tap into other countries’ the institutions in North Norway when the knowledge and expertise, enhances knowledge national programme for supporting education and about shared environmental problems, and helps research, eCampus, is launched. The intention is to ensure high quality and good use of resources. to enhance the flexibility of the training pro- Norway has internationally leading research com- grammes offered and improve access to higher munities in a number of fields that are important education. The eCampus programme will develop for developments in the High North, in particular Norway’s ICT infrastructure, and give universities in the fields of climate change, the environment and university colleges simple, user-friendly ICT and energy. Geographical and natural conditions tools for teaching, better ICT support for 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 41 The High North

Figure 3.5 The Fram Centre, Tromsø. Photo: Ann Kristin Balto, Norwegian Polar Institute

research, and greater opportunities for providing The Government intends to improve knowledge digital learning resources. about environmental and climate-related chal- The Government has implemented various lenges in the High North and opportunities for measures to strengthen tuition in the Sami lan- development by placing greater emphasis on guages and improve recruitment to Sami teacher research that is relevant to the region, for exam- training programmes. A national recruitment ple through the Research Council of Norway. This strategy for Sami higher education was launched includes research on the development of sustain- in spring 2011. Moreover, a Sami teacher training able local communities and industries in the region has been established, with the aim of region, and on Norwegian and international High improving teachers’ qualifications in the Southern North policies. Sami and Lule Sami languages. At the same time, This will strengthen knowledge-based man- the teacher training reforms safeguard Sami agement of the High North and provide a better needs in a whole new way, and lay a better founda- knowledge base for the private sector, which it tion for achieving equal access to education for needs in order to optimise its activities. the Sami minority. In 2009, a system of regional research funds A committee been appointed to report on Sami was established. In 2011, North Norway received research and higher education in a broad around NOK 32 million, and projects on climate regional, national and international perspective. change adaptation, regional welfare and cross-bor- The committee is chaired by Nils Butenschøn der regional developments have been given prior- (University of Oslo), and it is to review how ity. The Research Initiative for Northern Norway research and higher education can play a role in (NORDSATSING) is also intended to strengthen setting the agenda for and promoting Sami social and further develop research capabilities in North development. The committee is to submit its rec- Norway, particularly in the fields of Arctic tech- ommendation on 31 December 2011. nology and tourism. 42 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

Much of what we consider to be knowledge Earth’s rotational velocity and its exact position in relating to the High North concerns topics that space are monitored. These measurements pro- are cross-border in nature, such as climate vide a basis for locating and surveying satellite change, the environment, marine and polar orbits and thereby improving the accuracy of all research, and issues relating to indigenous peo- satellite-based activities. This in turn has an ples. It goes without saying that international impact on the quality of the data we obtain and the cooperation is essential in fields such as these. accuracy we achieve in areas such as satellite- Our cooperation with Russia, and also with Can- based communication, Earth observation, climate ada and the US, stands out. Norway has entered research and monitoring. International coopera- into a cooperation agreement with Russia on tion on activities at the observatory will be contin- higher education, and the first meeting in the joint ued, including measurements relating to global working group was held in spring 2011. A revised climate change, sea levels and movements of the strategy for higher education cooperation with the Earth’s surface. US and Canada was launched in autumn 2011. The There is considerable international activity in High North Fellowship Programme promotes Svalbard: ten countries currently have research cross-national cooperation and mobility between stations in Ny-Ålesund, half of the students at the educational institutions in Norway, Russia, the US University Centre in Svalbard are foreign nation- and Canada. Cooperation with the other circum- als, and almost 20 countries are participating in polar countries, the members of the Arctic Coun- the Svalbard Integrated Arctic Earth Observing cil, key EU countries and large countries that have System (SIOS) project, which was initiated by an active presence on Svalbard is also very impor- Norway (see box 3.1). tant. The University of the Arctic is a network of higher education institutions in the circumpolar The research communities in the High North countries, which is partly financed by grant have made important scientific progress, but they schemes and funding for developing joint study are to a large extent dependent on public financ- programmes. The Government intends to ing. This is partly because few knowledge-inten- strengthen international cooperation on research sive businesses are involved in research coopera- and higher education in the High North. This cov- tion. In the Government’s view, steps should be ers both bilateral cooperation, for example with taken to build up a more knowledge-based busi- Russia, and multilateral cooperation, not least with ness sector in the High North. This is discussed other European countries through the EU’s in more detail in Chapter 13.1. framework programmes for research. In the Government’s view, an increasing share Research and higher education is and will con- of the funding for research in North Norway tinue to be one of the pillars of Norway’s activity should be obtained through competition in in Svalbard. Capacity at the University Centre in national and international arenas. This is impor- Svalbard has been increased in recent years, and tant for ensuring that we have strong research in both 2009 and 2011 funds were allocated for 20 communities that carry out high-quality, relevant new student places at the Centre. Research infra- research. structure is an essential basis for research and knowledge development in the High North. Sval- bard provides unique opportunities for observing Knowledge hubs the effects of climate change where they are most It is important to make the most of the compara- apparent, and where the natural environment is tive advantages of various knowledge institutions most vulnerable to rapid change. Moreover, the through the special expertise they have acquired, archipelago already has a well-developed infra- whether as a result of their geographical location, structure for observation, research and teaching specialisation, or infrastructure they have built up. and a broad international research community, Kirkenes occupies a unique position in Norway’s based mainly in Longyearbyen and Ny-Ålesund. cross-border cooperation with Russia. The inter- The SvalSat satellite station at Platåberget in national Barents Secretariat and the Barents Insti- Longyearbyen is the only satellite station in the tute are based there, as is the Norwegian Barents world that is close enough to one of the poles to Secretariat, which organises a wide range of activ- receive data from all satellites in polar orbits. ities and extensive project cooperation with Rus- The geodetic observatory in Ny-Ålesund is an sia. The Government wishes to strengthen the important northern node in a global network. position of Kirkenes as a base for regional cooper- From here, movements of the Earth’s surface, the ation and regional knowledge about Russia. The 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 43 The High North

Box 3.1 Svalbard Integrated Arctic Earth Observing System (SIOS) By improving the organisation of research, pro- ture which can match advanced Earth System viding easier access to observations and models with observational evidence and provide research data from Svalbard and facilitating the near-real-time information on Arctic change to shared use of such data, Norway will be able to relevant stakeholders. By promoting research offer the world’s research communities a valu- cooperation and the sharing of data, the project able resource. This was the rationale behind will increase the value of research activities, and Norway’s decision to launch the SIOS research reduce the risk of overlap and unnecessary envi- infrastructure project. SIOS is listed in the Euro- ronmental pressure in Svalbard. SIOS will pean Strategy Forum on Research Infrastruc- include upgrading of infrastructure, a limited tures Roadmap as one of the pan-European proj- number of new observation platforms, and a ects that should be established as quickly as new Knowledge Centre in Longyearbyen. It will possible. The project, which is led by the also strengthen Svalbard’s role as an interna- Research Council of Norway, has received fund- tional research platform. SIOS is mentioned in ing from the European Commission for its three- New Building Blocks in the North, and it is a pri- year preparatory phase. The main aim of SIOS is ority project for the Government. It is intended to have an optimised observational infrastruc- to be operational by the end of 2013.

focus is on further developing people-to-people opportunities in the High North, in particular in cooperation in the Barents region in a number of the context of cooperation with Russian centres of areas, including culture, health, sport and youth expertise and business. The University of Nord- exchange programmes. The annual Kirkenes con- land is developing its cooperation with the ference and cultural festival Barents Spektakel are MGIMO University in Moscow in the area of examples of the strong engagement that exists energy management, for example through the and the breadth of cross-border cooperation. Norwegian and Russian Education and Research The University of Tromsø is a leading institu- Consortium for International Business Develop- tion as regards issues relating to the High North. ment in the Energy Sector (NAREC). The Univer- With around 500 researchers focusing on polar sity of Nordland is also responsible for the issues, climate change and the environment, research project Northern InSights, which is Tromsø has become a centre for Arctic issues, intended to contribute to value creation in the both in Norway and internationally. Around 800 of tourism industry. Many tourism companies in the University’s 9 000 students are foreign nation- North Norway are participating in the project, als. The establishment of the ICE Centre for Ice, along with the Nordland Research Institute, Climate and Ecosystems and the Fram Centre Harstad University College, the University of shows how important the Government considers Tromsø, Bioforsk Nord and the Northern Tromsø to be as a centre for knowledge and Research Institute (Norut) Alta. Finnmark Univer- research. The fact that the Arctic Council’s perma- sity College also has considerable expertise in nent Secretariat will be located in Tromsø further education and research relating to the tourism consolidates the city’s position as an Arctic power- industry. house. Another important priority area is cold cli- The University of Nordland has strong mate technology. Through the NORDSATSING research groups in the social sciences, business, initiative, the Government has been involved in and marine biosciences. It has become a leading the establishment of a competence centre in Nar- institution with regard to cooperation with univer- vik for cold climate operations and infrastruc- sities and the private sector in Russia. The estab- ture. In general terms, cold climate technology lishment of the High North Center in 2007 has covers most aspects of construction, operations resulted in further development of expertise and and living in the Arctic region. The ColdTech cooperation with Russia in various fields – energy, sustainable cold climate technology project trade, fisheries, tourism and other sectors. The focuses on developing cooperation between Government intends to strengthen Bodø as a cen- industrial partners and research and educational tre for the development of knowledge on business institutions. Research groups in Narvik and Alta 44 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North are taking part, along with DNV, Statoil and the of the High North. The strong technology com- SINTEF Group. Thus, Norway’s top experts are munity in Trondheim will also participate actively joining forces to address challenges in the High in building up knowledge on and for the High North. North. If we are to succeed in the High North, we must draw on experience and special expertise from knowledge institutions throughout Norway. 3.5 The indigenous dimension of Geographical proximity to the region is not Norway’s High North policy enough in itself. The emergence of industries and knowledge institutions throughout the country The indigenous dimension is a central part of the has resulted in a regional division of labour, where Government’s High North Strategy. Norway’s different regions have capitalised on their compar- High North policy is intended to play a role in ative advantages to establish new activities. The safeguarding and developing indigenous peoples’ momentum in the petroleum industry is strongest languages, cultures, livelihoods, traditions and in the Stavanger region, while the Bergen region societies in the High North. Increasing interna- has special expertise in the areas of operations tionalisation, expanding business activities and and maintenance and marine research. In the growing exploitation of natural resources create Kongsberg/Asker region, there is underwater new opportunities, but also put more pressure on technology expertise. Eastern Norway and the the cultures and livelihoods of indigenous peo- regions of Sunnmøre and Sunnhordland in West- ples. It is vital that the rights of indigenous peo- ern Norway are known for their shipowners and ples are safeguarded in the utilisation and man- shipbuilding, while Southern Norway has the agement of natural resources and the environ- business cluster Norwegian Offshore & Drilling ment in the High North. Integrated resource man- Engineering (NODE). All of these expert commu- agement includes protection of the basis for indig- nities are important for the further development enous peoples’ livelihoods, languages, culture,

Figure 3.6 A Norwegian Sami with two Nenets on the tundra near Narjan-Mar in the Nenets Autono- mous Okrug, which is the northernmost part of the Barents region. Photo: BarentsObserver 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 45 The High North traditional knowledge and reindeer husbandry logues with countries such as Russia and Canada. areas, as well as protection of the coastal environ- The joint declaration on cross-border cooperation ment and of traditional sea-water and salmon fish- between Norway and Russia (2010) has been fol- eries. The Government will seek to develop ethi- lowed up with a joint work plan (2011) including cal guidelines that make sure that indigenous peo- specific cross-border indigenous projects. ples’ interests are taken into account when eco- Indigenous peoples have valuable knowledge nomic activities are carried out in the High North, about nature, the environment and traditional in accordance with the current state of Norwegian practices. They are stewards of cultural values and law.5 have specialised knowledge of ways of making a The Government will facilitate participation by living under marginal conditions in subarctic con- indigenous peoples in planning, decision-making, ditions. The Arctic Climate Impact Assessment management, monitoring and research, so that (ACIA) shows that the temperature is rising faster they are able to take advantage of the opportuni- in the Arctic than previously thought, and indige- ties the future development of the High North nous communities are those that will be affected may provide. It is essential that positive develop- first, and most severely. New challenges for rein- ments in the High North are also experienced as deer husbandry, agriculture and sea-water and positive by the indigenous peoples affected by inland fisheries in Sami areas may arise as a result them. The Government attaches importance to of global climate change. Many of the challenges cross-border indigenous projects focusing on lan- facing reindeer husbandry are common to all the guages, traditional knowledge, the development Arctic countries. In the light of this, and in order of cultural industries, capacity and competence- to strengthen international reindeer husbandry building in Sami institutions and organisations, cooperation in the Arctic, the International Centre research, dissemination and cultural exchange. It for Reindeer Husbandry was established in is also natural for the Sami people to be involved Kautokeino. in the wider, cross-border people-to-people and Research and knowledge development will cultural cooperation in the High North. This make it possible to develop climate change adap- includes projects for children and young people, tation strategies based on the traditional knowl- and cooperation in the areas of health, sport, vol- edge of the Sami and other indigenous peoples. untary activities, languages, culture, film and Sami institutions and organisations have broad other forms of cultural expression, for example contact networks and extensive experience of festivals. international and cross-border cooperation, which The Government holds regular meetings with are of great value for promoting the interests of the Sami Parliament (Sámediggi) on matters indigenous societies in the High North. One of related to the High North. Indigenous issues are a the purposes of the Ministry of Foreign Affairs’ key area of cooperation within the Arctic Council, Barents 2020 grant scheme (see Chapter 4.2) is to the Barents Euro-Arctic Council and the Northern create new arenas for cooperation on knowledge Dimension, and in the bilateral High North dia- generation between Norwegian and foreign cen- tres of knowledge, business interests and public 5 For further details, see New Building Blocks in the North, bodies. The scheme is also relevant to Sami inter- Chapter 7.3. ests. 46 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

4 Instruments of Norway’s High North policy

Figure 4.1 Artscape Nordland, Leirfjord. “Omkring” (Around) by Waltercio Caldas (Brazil). Photo: Guri Dahl / tinagent.com

4.1 The High North Strategy and New was further developed in the report New Building Building Blocks in the North Blocks in the North – the next step in the Govern- ment’s High North Strategy.1 This identified spe- The Government presented its High North Stra- tegy on 1 December 2006. This document pro- 1 These documents are available on the Government’s High vided a summary of the Government’s ambitions North portal: www.regjeringen.no/en/dep/ud/cam- in the High North. In March 2009 the strategy paigns/the-high-north.html?id=450629 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 47 The High North cific action points for the implementation of a amounted to approximately NOK 348 million. number of strategic projects over a 10–15 year These funds are used strategically to achieve the period. The priority given to the various action goals set out in the High North policy and for the points and the order and speed of their implemen- realisation of relevant projects. tation are considered on an ongoing basis, and are described in the Government’s annual budget pro- posals to the Storting. Efforts in this area are Barents 2020 adapted to activity in the Government’s other pri- The grant scheme Barents 2020 was established ority areas, and to the economic situation in each under the Ministry of Foreign Affairs’ budget in budget year. 2006. Its purpose was to make financial resources Over the past few years the Government has available that could be used to fill gaps in our proposed allocations for High North-related proj- knowledge and bring about cooperation across ects totalling more than NOK 1 billion per year. sectors in the High North. Barents 2020 has However, the overall amount of public funding proven to be a flexible and effective tool for pro- that goes to the northern parts of Norway is far viding rapid support to initiatives in which private higher. It is almost impossible to calculate the actors participate to supplement public funding overall amount of public funds used broken down (public-private partnerships). Most of the projects by geographical area. The identification of a series fall within four categories: research and higher edu- of priority areas in the High North is intended to cation, social science research, natural science enhance knowledge and activity in strategic areas. research and projects outlined in the Barents 2020 The considerable increase in funding for projects report.2 in the High North in recent years has led to signif- The Government is seeking to increase the icant activity in many of these areas. involvement of research groups in North Norway by ensuring that at least 50 % of grant funding through the Barents 2020 scheme goes to projects 4.2 Policy instruments for the High in which research groups in North Norway are North included. Research and higher education: The Ministry of Ministry of Foreign Affairs’ grant schemes Foreign Affairs has given priority to providing The Ministry of Foreign Affairs’ grant funding for the High North and cooperation with Russia has 2 Arve Johnsen: Barents 2020 – A tool for a forward-looking also increased in recent years and in 2011 High North policy, September 2006

Grants for projects in the High North

400 Arctic cooperation

300 Barents 2020

200 Nuclear safety cooperation

100 Project cooperation with Russia

0 2005 2006 2007 2008 2009 2010 2011

Figure 4.2 Source: Ministry of Foreign Affairs’ annual budget proposals 48 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

Figure 4.3 DNV and Gazprom led the Norwegian-Russian Barents 2020 project on the harmonisation of health, safety and environment standards for petroleum activities in the Barents Sea. Photo: Graham Davies funding for guest professorships and study grants. strengthened by the establishment of a three-year The High North grants, which are designed to circumpolar research project focusing on destina- boost exchange and cooperation between educa- tion development, networking and working meth- tional institutions in Norway and similar institu- ods in Arctic tourist destinations. The Ministry of tions in Russia, the US and Canada, fall into this Foreign Affairs also provided funding for the category. Students from the partner countries are establishment of the Barents Remote Sensing awarded grants to participate in study pro- School, a research school in Earth observation grammes relevant to the High North at higher and remote sensing at the University of Tromsø. education institutions in North Norway. The grant In addition, the Ministry has contributed funding scheme was launched in 2007 and is now in its for the establishment of a centre for research on second three-year period (2010–13). In this sec- climate change and health with particular empha- ond period, funding is also being provided for sis on the health impacts of climate change on vul- travel grants for teaching staff at educational insti- nerable groups in the circumpolar areas, also at tutions in North Norway. The grant scheme is the University of Tromsø. administered by the Norwegian Centre for Inter- Funding has been provided for the establish- national Cooperation in Higher Education. ment of a joint German-Norwegian professorship at In 2009, funds were set aside through a public- the University of Stavanger in the field of energy in private partnership for the establishment of sev- the High North. Support has also been provided eral guest professorships at Norwegian knowl- for the establishment of a joint masters degree pro- edge institutions. The position of Finnmark Uni- gramme in petroleum technology by the University versity College as a centre for research and exper- of Stavanger and the Gubkin Russian State Univer- tise in the field of Arctic tourism has been sity of Oil and Gas. In cooperation with the Ful- 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 49 The High North

Box 4.1 Barents 2020: GEOPOLITIKK-NORD The GEOPOLITIKK-NORD project is an inter- edge about the High North for use in the aca- national, Norwegian-led research project involv- demic and public debate in the form of written ing cooperation between a number of leading publications and through international confer- Norwegian and international institutions. The ences, seminars and the project’s website focus of the project is on international relations www.geopoliticsnorth.org. The project is running in the High North in the light of climate change from 2008 to 2012 and is headed by the Norwe- and increasing economic activity. Studies of key gian Institute for Defence Studies. The interna- actors – the US, Russia and the EU – and their tional partners are the Center for Strategic and interests in the region, as well as the implica- International Studies in Washington DC, the tions of their policies for Norway are a key com- German Institute for International and Security ponent of the project. Analyses of the various Affairs in Berlin and the MGIMO University in actors’ policies and interests, including interna- Moscow. The University of Oslo, the Fridtjof tional legal issues, governance, energy, climate Nansen Institute and the University of Tromsø issues and the environment serve to enhance are active partners in the project and a number our understanding of the geopolitical signifi- of other research groups whose affiliation to the cance of the High North, with a particular focus project is weaker also participate. The GEO- on the present situation and future scenarios. POLITIKK-NORD project is funded by the The GEOPOLITIKK-NORD project generates Research Council of Norway under the Ministry research-based and politically relevant knowl- of Foreign Affairs’ Barents 2020 grant scheme. bright Program, a scheme has been set up to pro- research programme, Russia and the High mote the exchange of Norwegian and US research- North/Arctic (NORRUSS), whose primary objec- ers from the University Centre in Svalbard, other tive is to generate knowledge on Russian society, Norwegian universities affiliated to University Cen- politics and industry and international relations in tre in Svalbard and US universities in fields related the High North. to the High North, in particular through the estab- Natural science research: The Ministry of For- lishment of a Fulbright Arctic Chair whose focus is eign Affairs supports projects in the natural sci- on climate change. The purpose of the scheme is to ences of relevance to the High North, in coopera- enhance knowledge of the High North, raise Sval- tion with other relevant ministries. The Nofima bard’s profile as a platform for international research institute has received funding under the research and promote the internationalisation of Barents 2020 scheme. The Research Council of higher education and research. Norway has provided support for research in the Social science research: A Research Institution- field of marine bioprospecting, also with funds based Strategic Project, GeoPolitics in the High allocated under the Barents 2020 scheme, as fol- North (GEOPOLITIKK-NORD) (see Box 4.1), low-up to the 2009 national strategy for marine has been established. The primary objective of bioprospecting. In addition, funds have been ear- the project is to generate new knowledge on for- marked to scale up research and analytical capac- eign policy issues related to the High North and ity in the field of Earth observation. This field is to strengthen Norwegian research groups work- particularly relevant to the High North and for ing in the field. The Ministry of Foreign Affairs use in areas such as climate monitoring, mapping also provides funding for a project on Asian per- of land use and resources, pollution from the spectives on the High North. This was prompted petroleum industry and maritime transport, moni- by the growing interest in the High North and the toring and sustainable management of the polar Arctic shown by Asian actors. The Norwegian regions and monitoring of threats to the environ- authorities, the Norwegian business sector and ment. In cooperation with the Research Council of the research community will benefit from gaining Norway, funding has also been allocated to a better understanding of and from keeping them- research on ecosystem change in the Barents Sea selves up to date on the drivers and reasons for as a result of climate change and on subsequent the increased Asian interest in the High North. adaptation measures in the management models. Through the Research Council of Norway, the This research is conducted primarily at the Cen- Ministry provides funding for a social science tre for Ecological and Evolutionary Synthesis 50 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

(CEES) at the University of Oslo. The Ministry of Foreign Affairs also provides funding to the Fram Box 4.2 Norwegian-Russian research Centre (High North Research Centre for Climate and knowledge cooperation and the Environment) in Tromsø for the promo- tion of international research cooperation. In 2011 the Ministry of Foreign Affairs signed The Barents 2020 scheme co-finances the Nor- a new five-year agreement with the Norwegian wegian and Russian Education and Research Con- Centre for International Cooperation in sortium for International Business Development Higher Education designed to strengthen Nor- in the Energy Sector (NAREC), which seeks to wegian-Russian cooperation on knowledge strengthen cooperation between Norwegian and development in priority areas such as petro- Russian educational institutions and research leum, energy, the sustainable use of groups in order to promote business development resources, business development, the humani- in the energy sector. The project is being carried ties and social sciences. The aim is to facilitate out under the auspices of the High North Center Norwegian-Russian cooperation on address- at the University of Nordland and the MGIMO ing the common challenges facing the two University in Moscow in cooperation with a num- countries, as these are described in the Gov- ber of industrial partners. The Ministry of For- ernment’s High North policy. The agreement eign Affairs also provided funding for a review of has a budgetary framework of NOK 45 mil- the potential for industrial value creation based on lion. The Ministry of Foreign Affairs is also geological resources in the High North (GeoNor), entering into a new agreement with the drawn up by the SINTEF Group, the Northern Research Council of Norway, whose overall Research Institute (Norut), the Geological Survey objective will be to generate knowledge on of Norway (NGU) and the Norwegian University political, economic and social developments in of Science and Technology (NTNU) with input Russia and to develop long-term strategic from industrial actors (for more details see Box expertise on Russia in Norway. The agree- 13.3). ment will have a budgetary framework of Follow-up of the Barents 2020 report: This NOK 45 million. The Ministry of Foreign includes a project led by DNV on the harmonisa- Affairs is also seeking to sign an agreement tion of health, safety and environment standards with the Research Council on research more for Norwegian and Russian petroleum activities in specifically related to the High North, which the Barents Sea. The project has generated con- will provide for NOK 45 million in funding siderable interest and serves as a reference for under the Barents 2020 scheme. other similar projects that seek to strengthen efforts on health and environmental standards in the High North, based on close public-private cooperation. Barents 2020 and these three grant schemes com- Barents 2020 is an important seed money bined. scheme for initiating projects and initiatives for The grant scheme for project cooperation with which other ministries have primary responsibil- Russia was launched at the beginning of the 1990s ity. This applies for example to the integrated mar- to promote Norwegian-Russian cooperation. The itime surveillance and information system Bar- scheme has played an important part in promot- entsWatch (see Box 10.1) and the research infra- ing people-to-people contacts and contacts structure project Svalbard Integrated Arctic Earth between centres of expertise and regional actors Observing System (SIOS). in the Barents region. The priority areas are envi- ronmental protection, energy, business develop- ment, health, education, research and the promo- Other grant schemes tion of democracy. Some 70 % of the funding is The Ministry of Foreign Affairs also allocates administered by external bodies. This enables the funding under three other grant schemes Ministry to benefit from the expertise of external designed to further its High North policy. These actors. grant schemes for project cooperation with Rus- The Norwegian Barents Secretariat allocates sia, cooperation on nuclear safety and Arctic coop- funding from the Ministry of Foreign Affairs for eration respectively are key funding schemes for Norwegian-Russian project cooperation on an Norway’s High North efforts. In 2011, a total of annual basis. The purpose of the projects is to NOK 348 million in funding was available under strengthen ties between people in the north. 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 51 The High North

Since 1993 the Norwegian Barents Secretariat tion of Norway and the Research Council of Nor- has provided a total of approximately NOK 380 way. The Industrial Development Corporation of million in funding and has supported some 3 200 Norway seeks to enhance innovation and busi- joint Norwegian-Russian projects. ness development through investment in infra- The grant scheme for Arctic cooperation was structure and the development of dynamic established as a separate budget item during Nor- regional centres of innovation and value creation way’s chairmanship of the Arctic Council (2006– across the country. Innovation Norway provides 09). The scheme plays a crucial role in ensuring products and services intended to promote inno- that Norway is a driving force in efforts to develop vation in business and industry nationwide, foster knowledge and formulate policy on the Arctic. regional development and profile Norwegian Funding allocated under the scheme includes sup- industry and Norway as a tourist destination. port to cover the running costs of the temporary Among other things, it administers an investment secretariat for the Arctic Council in Tromsø, fund- fund for northwestern Russia and a grant fund for ing for the Snow, Water, Ice and Permafrost in the economic cooperation with northwestern Russia. Arctic (SWIPA) assessment and projects in the In addition, the Ministry of Local Government field of environmental monitoring. The aim of the and Regional Development can provide funding funding is to raise Norway’s profile as a polar through the public funding agencies for activities nation and to promote Norwegian priorities, such in areas where coordination between counties is as environmental protection and sustainable appropriate and for thematic projects in North development, in Arctic cooperation. Norway. The Ministry of Education and Research The Government’s plan of action for nuclear also provides funding through the regional safety and the environment was first drawn up in research funds and through instruments related the 1990s to follow up challenges related to to the High North under the Research Council of nuclear installations and nuclear material in north- Norway and the universities and university col- western Russia. A number of important measures leges. have been implemented, including the removal of The Government will focus its efforts on those radioactive power sources from lighthouses along areas where Norway and the various regions of the coasts of the Barents Sea and the White Sea. Norway have particular advantages and are well- The County Governor of Finnmark and the Nor- placed to succeed. The Government is seeking to wegian Radiation Protection Authority are the facilitate changes in industrial structure both Ministry of Foreign Affairs’ most important part- through its general business policy and through ners in the region. Other priority areas for cooper- local initiatives. The establishment of a network of ation will be the removal of spent nuclear fuel industrial clusters is one of several means of from Andreyev Bay, measures related to safety enhancing the competitiveness of North Norway. and emergency preparedness at the Kola and Len- In a regional project on promoting a knowledge- ingrad nuclear power plants and environmental based North Norway – a joint project between the monitoring. The G8 Global Partnership against University of Tromsø, the Northern Research the Spread of Weapons and Materials of Mass Institute (Norut), the University of Nordland and Destruction provides an important framework for Menon Business Economics – extensive research the cooperation. is being carried out to improve our understanding of how business clusters are developed in the region and the role the public sector can play to Public funding agencies at national and regional level promote the formation of these clusters. Traditionally, the focus of Norway’s High North An action zone for Finnmark and northern efforts has been on Norwegian sea and continen- Troms was established in 1990 in response to the tal shelf areas. These will continue to be key areas negative population and business development of Norway’s High North policy. At the same time trends. The Government considers it important to the Government emphasises the fact that knowl- develop the action zone into an attractive region edge development and value creation on shore are for settlement, work and business activities. A an integral part of the policy. review of the action zone is underway to chart the The counties play a key role in promoting effects of the scheme and the relevance of the pol- regional social and business development. Their icy instruments and to determine whether there is efforts are coordinated with the activities of the a need for adjustments or new measures that can national public funding agencies, such as Innova- improve the scheme’s effectiveness. The review is tion Norway, the Industrial Development Corpora- due to be completed by the beginning of 2012. 52 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

Figure 4.4 During the High North Study Tour in 2009 the participants visited the EISCAT facility near Longyearbyen. Hu Zhengyue, Assistant Minister of Foreign Affairs, Chinese Ministry of Foreign Affairs, and Shang Zhen, Second Secretary, Chinese Ministry of Foreign Affairs. Photo: Line Aune, Ministry of Foreign Affairs

4.3 International dialogue The High North dialogues are important for Norway for several reasons. Norway is seeking to: The Government’s aim is for Norway to play a – shape the agenda in the High North and posi- role in shaping and influencing the international tion itself as a major player; agenda in the High North. For this reason, con- – gain respect and understanding for its views ducting strategic dialogues with selected states on and interests in the High North; issues related to the High North is a key compo- – develop concrete cooperation projects with nent of Norway’s High North policy. other countries; The previous white paper on the High North, – encourage other countries to allocate more Opportunities and Challenges in the North (Report resources and direct more attention to the No. 30 (2004–2005) to the Storting) called for the High North. promotion of Norwegian views on the High North vis-à-vis key countries and organisations. This has Through dialogue with other countries Norway is been followed up through Norway’s active High seeking to make its mark on the international North diplomacy. Since 2004 dialogues on the political agenda in the High North. The dialogues High North have been initiated with a number of focus increasingly on developments in the Arctic. countries. We are seeking to convey a message of coopera- In 2004 the High North was not a prominent tion in the Arctic, a region where we share a com- feature of the political agenda in most countries. mon interest in preserving peace, stability and There was therefore a great need both to provide predictability. We wish to counter the idea that information about developments in the High there is a race for the Arctic and to highlight the North and to promote Norwegian views as to how fact that the Arctic is an area regulated by interna- the new challenges and opportunities in the High tional law where the necessary treaties are in North should be met. place to enable us to meet current and future chal- 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 53 The High North lenges. Through the dialogues and through rele- geted more specifically to reflect Norwegian inter- vant cooperation projects, we are seeking to dem- ests vis-à-vis the individual countries. This applies onstrate Norway’s full commitment to promoting to Norway’s dialogue with Russia, where the focus environmentally sound, sustainable management is on fisheries, the environment, oil and gas, to of renewable and non-renewable resources our dialogue with Sweden and Finland, where the throughout the region, at the same time as main- focus is on the development and transport of min- taining respect for the livelihoods of indigenous erals, and to our dialogue with Canada, which peoples. focuses on a number of areas such as fisheries, The High North dialogues are tailored to focus indigenous peoples, research, management of sea on the issues that are most important in Norway’s areas and oil and gas. Security policy consulta- bilateral relations with each of the countries con- tions are also held with a number of the Arctic cerned and on areas where they have particular states. interests and expertise. The most common topics In addition, close dialogue has been estab- are: lished with key EU countries such as France, the – Climate change: The impacts of climate change UK, Germany, Spain, Poland, the Netherlands and in the Arctic, climate and polar research and Italy. All these countries have a long tradition of research cooperation in the Arctic, for example polar research and also strong interests in oil and in Svalbard. gas supplies from Norway and Russia. With the – Shipping: Financial savings to be made by exception of Italy, all of them are also permanent increased use of the Northeast Passage for observers to the Arctic Council. Our dialogues transporting goods between Europe and Asia. with these countries, particularly with France and – Resources: Potential new discoveries of petro- Germany, began as broad-based discussions on leum and minerals in the High North, which issues relating to the High North, but are now are key to these countries’ economic develop- focusing more closely on energy, the most rele- ment. vant issue in our relations in this context. The energy dialogues, conducted in cooperation with The High North is a natural item on the agenda in the Ministry of Petroleum and Energy, have also political forums and talks at different levels. Nor- been successful. These dialogues address topics way maintains particularly close contact with the such as gas exports, renewable energy and member states of the Arctic Council (Russia, the energy efficiency. US, Canada, Denmark/Greenland, Iceland, Fin- In Iceland, a white paper on the High North land and Sweden). These countries have the was presented to the Allthingi in January 2011, strongest and most wide-ranging interests in the and Norway has since initiated a dialogue with High North and it is with these countries in partic- Iceland on closer cooperation on issues relating to ular that Norway must work to find effective and the Arctic. Potential areas of cooperation are comprehensive solutions in the future to achieve exchanges between Icelandic and Norwegian uni- the overall aims of maintaining peace and stability versities and knowledge institutions and coopera- and ensuring sustainable resource development tion on projects in the fields of climate change, the in the region. environment and marine resources. A memoran- The Government will intensify its dialogue dum of understanding on cooperation on Arctic with the countries that are seeking permanent scientific research was signed by the countries’ observer status in the Arctic Council. This will foreign ministers in September 2011. help to promote a common understanding of In January 2011 Prime Ministers Jens Stolten- developments in the Arctic and clarify how these berg and David Cameron signed a bilateral and countries can contribute to the work of the Coun- global partnership agreement Expanding cooper- cil based on the criteria for the admission of new ation in the field of polar research was one of the permanent observers that were established at the areas included in the agreement. To achieve this, Ministerial Meeting in Nuuk in May 2011 (see joint projects in the field of polar research and on Chapter 7.2 on the Arctic Council). cultural heritage conservation at shared sites in The specific characteristics and interests of the polar regions are being developed. The UK, the various countries must be taken into account which has four year-round stations in the Antarc- in the development of these dialogues. Whereas tic and a research station in Ny-Ålesund in Sval- initially the High North dialogues were often bard, is a leading polar research nation. wide-ranging and informative in nature, their All this illustrates how dialogue and coopera- focus has gradually been narrowed down and tar- tion with other countries is being developed and 54 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North adapted in terms of form and content to focus ping companies in the world. In this respect, the more specifically on areas of mutual interest and High North is more than a strategic priority for benefit. Norway; it is also of crucial importance to the The EU is playing an increasingly active role economy and foreign trade of the world’s most in matters related to the High North and is cur- densely populated and dynamic region. rently developing its own strategy for the High The Government is also seeking to intensify North. Norway has already established close dia- dialogue on High North issues at parliamentary logue with various EU institutions on High North level and will therefore propose annual dialogues issues, both through talks at political level and at a between the Ministry of Foreign Affairs and the series of events and meetings held in recent years. parliamentary assemblies that are relevant to the In the years to come, ensuring close and broad- High North, in which Norwegian parliamentari- based dialogue with the EU on the High North ans participate (the Arctic Parliamentary Commit- will continue to be one of Norway’s priorities. The tee, the NATO Parliamentary Assembly, the Par- Government is seeking to strengthen cooperation liamentary Assembly of the Nordic Council and with the EU in the High North in areas of com- the Northern Dimension Parliamentary Forum). mon interest. This applies in particular to coopera- The High North dialogues at political and tion on research and knowledge development. senior official level are supplemented by a num- Norway will seek to ensure that the EU research ber of targeted measures designed to communi- programmes give priority to projects that are rele- cate Norway’s views on the High North to key vant for the High North. This could also enhance decision-makers in a number of countries. Study knowledge development in Norway and open up tours to Norway that focus on Norway’s High new opportunities for research cooperation in the North policy are one important tool. Since 2006 High North, for example within the EU priority the Ministry of Foreign Affairs has organised areas of climate change and the environment. international study tours to Svalbard on an annual Norway has taken a number of initiatives vis-à-vis basis, in cooperation with the Norwegian Polar the EU, for example as regards cooperation on Institute, the Norwegian University of Science research infrastructure in Svalbard (Svalbard and Technology, the SINTEF Group and the Uni- Integrated Arctic Earth Observing System), see versity Centre in Svalbard. Since the study tours Box 3.1. The Joint Programming Initiative for were first started, over 60 international partici- Healthy and Productive Seas and Oceans (JPI pants from 11 countries, as well as representatives Oceans), a large-scale joint European programme of the EU, have taken part in a High North Study carried out in cooperation with Spain and Bel- Tour. The tours have given the participants an gium, is another Norwegian initiative. It does not insight into our thinking on the High North and focus exclusively on the High North, but encom- have enabled them to gain more knowledge and passes cross-cutting marine and maritime issues understanding of the opportunities and chal- related to European seas. lenges in the High North. Asian countries have also shown a growing The annual High North conferences, including interest in the High North, with countries such as the Arctic Frontiers Conference (Tromsø), the China, Japan and South Korea establishing their Arctic Dialogue Conference (Bodø) and the own research stations in Ny-Ålesund. The North- Kirkenes Conference are important arenas for dis- east Asian countries have both the financial cussing topical High North issues at both political means and the expertise in research and techno- and expert level. logical development to play a greater role in the In recent years several countries have devel- Arctic than is currently the case. Companies from oped their own High North strategies (see Box Japan, South Korea and China are already 4.3). This is a positive development. Broad con- involved in offshore activities on the Norwegian sensus on the fundamental legal and political continental shelf. These actors are also following issues has developed over time. Although the the potential for the opening up of new fields in national strategies naturally contain some differ- Arctic waters. Moreover, South Korea, China and ences in emphasis, there are many similarities Japan are the world’s three largest shipbuilding between the various High North strategies in nations and play a key role in the development of terms of visions and priorities. icebreaker technology, which could lead to an Firstly, all the countries that have developed expansion of trade relations along the Northeast High North strategies appreciate the importance Passage. Several Northeast Asian shipping com- of maintaining peace, stability and predictability. panies are included among the ten largest ship- Secondly, there is a strong emphasis on sustain- 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 55 The High North

(Sámediggi), the research community, the private sector and other actors. The Ministry of Foreign Box 4.3 Selected countries’ Affairs has appointed two committees to further High North strategies the development of a dynamic High North policy. Canada: Canada’s Northern Strategy: Our The Government’s Expert Committee on the North, Our Heritage, Our Future (March High North was appointed in January 2006 and 2009) delivered its final report in June 2008.3 The report and: Statement on Canada’s Arctic Foreign served as an important basis for the Government Policy (August 2010) in following up its High North Strategy and for the Denmark: Kingdom of Denmark – Strategy for preparation of the report New Building Blocks in the Arctic 2011–2020 (August 2011) the North. Finland: Finland’s Strategy for the Arctic Based on the success of the Expert Committee Region (July 2010) it was decided to establish a new committee as a Iceland: A Parliamentary Resolution on Ice- dialogue partner for central and regional authori- land's Arctic Policy (March 2011) ties on the High North Policy. The High North Russia: “The fundamentals of Russian state Committee4 was appointed by the Ministry of For- policy in the Arctic up to 2020 and beyond” eign Affairs on 30 April 2010 for a period of two (September 2008) (Russian only) years. Its term was later extended by one year, US: Arctic Region Policy (January 2009) until June 2013. The committee was established to EU: The first step in the development of a policy provide input to the Norwegian authorities as to for the Arctic was the Communication from the how the new opportunities opening up in the High Commission to the European Parliament and North can be used to safeguard Norway’s inter- the Council on the European Union and the ests, with particular focus on creating a better Arctic Region of November 2008. The Council basis for value creation in North Norway. discussed the Commission’s communication in The High North Committee has held a num- December 2009. The European Parliament ber of meetings with actors from the private sec- adopted a resolution on a sustainable EU policy tor and civil society across the region, which have for the High North in January 2011. generated input and ideas about the possibilities Sweden: Sweden’s strategy for the Arctic region for increasing value creation in the north. The (May 2011) meetings were organised around specific topics: knowledge and expertise, natural resource man- agement, logistics and infrastructure, culture and tourism, industry and industrial clusters and part- able development and the development of renew- nerships. able and non-renewable resources in the High The committee participates actively in the pub- North. Thirdly, great importance is attached to lic debate on issues related to the High North and respect for the Law of the Sea and the UN Conven- works on a number of areas discussed in this tion on the Law of the Sea as the international white paper, such as knowledge, research, educa- legal framework for the Arctic. The five coastal tion, emergency preparedness, minerals, fisher- states bordering the Arctic Ocean emphasise the ies, aquaculture and space-related commercial importance of the special duties and rights they activity. have under the Law of the Sea. Fourthly, the Arc- Information about the work of the High North tic Council is referred to as the most important Committee can be found on the committee’s web- circumpolar forum for dealing with issues relating site: www.nordområdeutvalget.no. to the High North. There is also broad agreement The Government is seeking to further that the Council needs to be strengthened. strengthen coordination and dialogue with regional authorities on its High North policy. The establishment of a coordination forum for the 4.4 National dialogue 3 The Government’s Expert Committee on the High North The Ministry of Foreign Affairs is responsible for was chaired by Jarle Aarbakke, Rector of the University of coordinating the Government’s High North pol- Tromsø. 4 icy. This involves cooperation with other relevant The High North Committee was chaired by Frode Mellem- vik of the University of Nordland until February 2012 when ministries and extensive contact and dialogue he was replaced by Hans Olav Karde, CEO of Sparebank 1 with regional authorities, the Sami Parliament Nord-Norge. 56 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

Box 4.4 Norway’s High North policy – selected reference documents 1. Knut Frydenlund, Foreign policy address to 10. The Norwegian Government’s High North the Storting, 1 November 1974, reproduced Strategy, Ministry of Foreign Affairs, Oslo/ in the Ministry of Foreign Affairs information Tromsø, 1 December 2006. bulletin UD-informasjon, no. 53, 8 November 11. Sluttrapport fra regjeringens ekspertutvalg for 1974. This was the first documented use of the nordområdene («Aarbakke-utvalget«) (Final term “nordområdene” (at the time translated report of the Government’s Expert Committee as “northern areas”) by the Ministry of For- on the High North), June 2008. (Norwegian eign Affairs. only) 2. MFA Circular no.61, 28 December 1977: 12. Svalbard (Report No. 22 (2008–2009) to the Behandling av spørsmål vedrørende nordom- Storting). rådene. This announced the establishment of 13. New Building Blocks in the North – the next an internal working group to improve the coor- step in the Government’s High North strategy. dination of work on questions concerning the Oslo/Tromsø, 12 March 2009. northern areas. 14. Nasjonal strategi 2009: Marin bioprospekter- 3. Protecting the Riches of the Sea (Report No. 12 ing – en kilde til ny og bærekraftig verdiskaping (2001–2002) to the Storting). (Norwegian strategy for marine bioprospect- 4. Look North! Challenges and opportunities in ing), (Norwegian only). the northern areas, Official Norwegian Report 15. Jonas Gahr Støre: "Most is north”. The High NOU 2003:32. Report from the Government’s North and the way ahead – an international Committee of Experts on the Northern Areas, perspective. Lecture at the University of submitted on 8 December 2003. Tromsø, 29 April 2010. 5. Opportunities and Challenges in the North 16. Nordområdesatsingen – Status oktober 2010, (Report No. 30 (2004-2005) to the Storting) (The High North policy – status report, Octo- 6. Political platform of the majority government ber 2010), (Norwegian only), Ministry of formed by the Labour Party, the Socialist Left Foreign Affairs, October 2010. Party and the Centre Party. Report published 17. First update of the Integrated Management on 20 December 2005. Plan for the Marine Environment of the Bar- 7. Jonas Gahr Støre, A sea of opportunities – A ents Sea–Lofoten Area, Meld. St. 10 (2010– sound policy for the High North, speech/arti- 2011). cle, University of Tromsø, 10 November 18. An industry for the future – Norway´s petro- 2005. leum activities, Meld. St. 28 (2010–2011). 8. Integrated Management of the Marine Envi- 19. Research Council of Norway: Research Strat- ronment of the Barents Sea and the Sea Areas egy for the Arctic and Northern Areas, Revi- off the Lofoten Islands (Report No. 8 (2005– sion 1 (forskning.nord.to) 2011-2016, June 2006) to the Storting). 2011. 9. Arve Johnsen, Barents 2020 – A tool for a for- ward-looking High North policy, report pub- lished on 19 September 2006.

leaders of Nordland, Troms and Finnmark county and exchange of information with an emphasis on councils and the President of the Sami Parliament the foreign policy and cross-border dimensions of has therefore been proposed. The forum will meet the High North policy. twice a year. Its main purpose will be coordination Part II A responsible actor in the High North

2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 59 The High North

5 International legal framework

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Birmingham NETH BELARUS ERLANDS Hamburg Bremen L Figure 5.1 Norwegian maritime boundaries. Source: Norwegian Military Geographic Service

5.1 A basis for stability and and international rules. This is the case in the predictability High North. There is broad international agree- ment that the UN Convention on the Law of the In order to maintain predictability and stability, it Sea constitutes the basic legal framework for the is essential that all states respect international law Arctic Ocean. This is of crucial importance for 60 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North preventing and avoiding disputes and potential limits of the continental shelf, and shipping. It is a conflicts in the region. Although various players binding expression of the coastal states’ recogni- have differing military and strategic, energy and tion of their obligations and responsibilities under transport interests in the High North, there is cur- the Law of the Sea in the Arctic, including their rently no race for the Arctic or for the resources in commitment to the orderly settlement of any pos- the region, which are almost without exception in sible overlapping claims. The treaty on maritime areas where there are no overlapping claims. The delimitation between Norway and Russia is a good High North is a peaceful region in which states example of the application of these principles in display a willingness to cooperate and to resolve practice. contentious issues in accordance with the princi- ples of international law. Respect for international law is essential for achieving the Arctic states’ 5.1.2 Norway’s 200-mile zones common goal of maintaining stability and predict- In 1976 Norway established an exclusive eco- ability. nomic zone extending 200 nautical miles from its baselines.1 Under the Convention on the Law of the Sea, Norway has sovereign rights in its exclu- 5.1.1 The Law of the Sea sive economic zone for the purpose of exploring, With the emergence of the modern Law of the Sea exploiting and managing both the living and non- came the need to establish maritime boundaries. living natural resources. After the Second World War the coastal states In 1977, in accordance with the Act of 17 gradually extended their jurisdiction, which December 1976 relating to the Economic Zone of involved both an extension of their territorial Norway, a fisheries protection zone was estab- waters and a move towards the establishment of lished around Svalbard.2 The Fisheries Protection zones for different purposes. Through its three Zone is a 200-nautical-mile zone around the Sval- Conferences on the Law of the Sea (1958, 1960 bard archipelago. The regulatory measures for and 1973–82), the UN sought to codify and further fisheries in the zone are non-discriminatory and develop the Law of the Sea by establishing global take into account previous fishing patterns in the conventions, such as the Convention on the Conti- area. nental Shelf of 1958, which formed the basis for In 1980 Norway established a fisheries zone the current rules on the delimitation of continen- around Jan Mayen, also under the Act relating to tal shelves. The last UN Conference on the Law of the Economic Zone of Norway.3 The fisheries the Sea led to the adoption of the UN Convention zone extends 200 nautical miles from the base- on the Law of the Sea in 1982. lines apart from where it meets the zones of Ice- The UN Convention on the Law of the Sea land and Denmark (Greenland). takes a broad, integrated approach to questions of maritime law and enjoys almost unanimous global support. The Convention represents a historic 5.1.3 Svalbard and Jan Mayen compromise between the desire of the coastal Norwegian sovereignty over Svalbard was recog- states to extend their jurisdiction and the principle nised under the Svalbard Treaty of 9 February of freedom of navigation. Even though the Con- 1920. The Svalbard Treaty entered into force on vention contains many innovative provisions, 14 August 1925, and from the same day Svalbard large parts of it are regarded as a codification of became part of the Kingdom of Norway, in customary international law. This applies particu- accordance with the Act of 17 July 1925 relating to larly to the key provisions on the exclusive eco- Svalbard. Norway’s sovereignty over Svalbard is nomic zone and the continental shelf. undisputed and generally recognised. Under the The international legal framework for the Arc- Svalbard Treaty, Norway undertook certain spe- tic was further clarified in May 2008 with the sign- cific obligations under international law related to ing of a ministerial declaration by the five coastal states bordering the Arctic Ocean – Canada, Den- 1 mark, Russia, the US and Norway. The Ilulissat Under the Act of 17 December 1976 No. 91 relating to the Economic Zone of Norway and appurtenant regulations. Declaration confirms that the Law of the Sea pro- 2 Regulations of 3 June 1977 No. 6 relating to the Fisheries vides the legal framework for activity in the Arctic Protection Zone around Svalbard. Ocean, for instance with regard to environmental 3 Royal Decree of 23 May 1980 No. 4 relating to the establish- protection, research, the delimitation of the outer ment of a fisheries zone around Jan Mayen 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 61 The High North

Box 5.1 The international legal framework in the Arctic Ocean Whereas Antarctica is a land mass regulated by eight members2 on search and rescue in the the Antarctic Treaty, the Arctic is an ocean sur- Arctic. The Arctic Search and Rescue Agree- rounded by nation states. Even though parts of ment was signed in Nuuk, Greenland in May the Arctic Ocean are covered by ice, the Law of 2011. Another example is IMO’s work on the the Sea applies fully in this region, as it does in development of a mandatory international code other sea areas around the world. The internatio- of safety for ships operating in polar waters (the nal legal framework for all activity in the Arctic Polar Code). The Polar Code is expected to be Ocean is set out in the Convention on the Law of completed in 2014, and to enter into force in the Sea, which clarifies questions relating to juris- 2015 or 2016. diction in the area, as well as rights and duties. Norway has a strong tradition of conscienti- Under the Law of the Sea the coastal states bor- ously implementing and complying with its obli- dering the Arctic Ocean have special duties and gations as a coastal state on its own continental rights in the area. Speculation about a “race for shelf and in zones under Norwegian jurisdiction resources” and the Arctic Ocean as an “area of as well as with flag state obligations for Norwe- lawlessness” does not reflect the actual situation. gian ships. Petroleum activities on the Norwe- The Convention on the Law of the Sea sets gian continental shelf are subject to the strictest out comprehensive rules for the exploitation of safety and environmental standards. The Nor- resources on the continental shelf and in the wegian fisheries management regime is based 200-mile zones, and concerning shipping, envi- on scientific knowledge and is strictly enforced ronmental protection and research. The Con- to prevent illegal, unregulated and unreported vention is supplemented by multilateral environ- fishing. Routeing and traffic separation schemes mental agreements and other international for shipping have been established along vulne- instruments, for example those regulating the rable parts of the coast so as to reduce the shipping and fisheries industries. Key instru- potential for damage and key environmental ments include the United Nations Fish Stocks considerations are taken into account in the Agreement1, which implements the provisions work on the management plans for Norwegian of the Convention on the Law of the Sea relating sea areas. These national efforts are being conti- to the conservation and management of stradd- nued at the international level, for example ling and highly migratory fish stocks, and con- under the North East Atlantic Fisheries Com- ventions adopted by the International Maritime mission, the Joint Norwegian-Russian Fisheries Organization (IMO), such as the International Commission, the Convention for the Protection Convention for the Safety of Life at Sea and the of the Marine Environment of the North-East International Convention for the Prevention of Atlantic and IMO. Norwegian activities in the Pollution from Ships. Arctic Ocean will naturally be based on the same The melting ice and expected increase in tradition and the same principles. activity in the Arctic Ocean will make coopera- 1 tion on the implementation of existing instru- Full name: The United Nations Agreement for the Imple- mentation of the Provisions of the United Nations Conven- ments and the development of supplementary tion on the Law of the Sea of 10 December 1982 relating to rules in various areas essential. At the initiative the Conservation and Management of Straddling Fish of the Arctic Council, for example, a new agree- Stocks and Highly Migratory Fish Stocks (4 August 1995). ment has been negotiated between the Council’s 2 The five Nordic states, the US, Canada and Russia.

the archipelago, including ensuring equal treat- to the territorial waters, which now extend to the ment of all nationals and companies of parties to 12-nautical-mile limit. Norway annexed Jan the treaty as regards certain activities within the Mayen in 1929 and the Act of 27 February 1930 geographical scope of the treaty. relating to Jan Mayen gave the island status as In the Svalbard Treaty, Svalbard is defined as part of the Kingdom of Norway. Norwegian sover- the islands situated between specified geographi- eignty over Jan Mayen is undisputed. cal coordinates. Some of the provisions also apply 62 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

national continental shelves must be resolved 5.1.4 Unresolved issues related to between the relevant coastal states. jurisdiction The US and Canada have one delimitation The continental shelf is the natural submarine issue that remains unresolved, in the Beaufort prolongation of the land mass of a coastal state. Sea, and both Canada and Denmark (Greenland) Under the Convention on the Law of the Sea all claim sovereignty over the small Hans Island. In coastal states automatically have sovereign rights 1990, the US and the Soviet Union negotiated an over the continental shelf to a distance of 200 nau- agreement on maritime delimitation in the Bering tical miles from the baselines. These rights also Sea. This agreement has not yet been ratified as it apply in cases where the continental shelf extends has not yet been approved by the Russian Duma. beyond the 200-nautical-mile economic zone. The Convention on the Law of the Sea sets out detailed rules for the delimitation of the outer limits of the 5.2 Borders continental shelf. The outer limits of the continen- tal shelf beyond 200 nautical miles can only be 5.2.1 Norway’s land borders in the north determined following the recommendation of a The borders of modern Norway are drawn in separate commission – the Commission on the accordance with agreements with our neighbou- Limits of the Continental Shelf – which has been ring countries and the provisions of the Law of the established for this purpose under UN auspices. Sea. Up until the 1700s the borders between Nor- In 2001 Russia was the first state in the world to way, Sweden and Russia in the sparsely populated submit documentation to the commission. It has Sami areas in the north remained fluid. The oldest since been asked to provide additional documen- border agreement that is still applicable is with tation. Canada has a deadline of 2013 for submis- Sweden and was concluded in 1751. The land bor- sion of documentation, and Denmark a deadline of der between Norway and Russia was established 2014. This issue does not apply to the US as it is in 1826. In 1924 the border between Norway and not yet a party to the Convention on the Law of the Finland was established on the basis of the agree- Sea. ment with Russia. Whereas Russia, the US, Canada and Den- There were two codicils4 to the border treaty mark are still collecting and organising informa- with Sweden, one relating to the movement of tion about their continental shelves in the Arctic reindeer over the state border and the other rela- Ocean, Norway has already received the recom- ting to border markings and maintenance. The mendations of the Commission on the Limits of practice of moving reindeer herds between seaso- the Continental Shelf. Norway submitted its docu- nal pastures had been carried out for hundreds of mentation in 2006 and the Commission issued its years, unhindered by state borders. Since 1751 final recommendations in 2009. Norway is thus cross-border reindeer husbandry has been regu- the first Arctic state to receive the Commission’s lated by various conventions, which also contai- recommendations. ned (and continue to contain) provisions relating Very few issues related to jurisdiction in the to grazing rights. The 1972 Reindeer Grazing Con- Arctic Ocean remain unresolved, particularly in vention expired in 2005 and a new convention bet- view of its size. There are, however, some ques- ween Norway and Sweden was signed in 2009. tions remaining related to whether the Lomono- Consultations on the convention were held in sov, Alpha and Mendeleev submarine ridges, for October 2010, and work is now underway to sub- example, are a natural prolongation of the coastal mit a proposal requesting the Storting’s consent states’ land mass and can thus be defined as part to ratification. The convention will enter into force of their continental shelf. If they can, this raises only after it has been approved by the parliaments the question of which state’s continental shelf of Norway and Sweden. these ridges belong to and how the boundaries between them should be drawn. The issue of the legal status of the ridges in relation to the rules 5.2.2 Delimitation of the continental shelf governing the continental shelf set out in the Con- and the economic zones vention on the Law of the Sea must be considered In cases where a state’s economic zone and/or by the Commission on the Limits of the Continen- continental shelf overlap with those of another tal Shelf on the basis of documentation provided state, delimitation agreements are needed. Under by the coastal states, while the delimitation of 4 Addenda to the treaty. 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 63 The High North

Figure 5.2 Russian border post No. 220 and a Norwegian border post at the Elvenes border station. Photo: Norwegian Defence Media Center / Torbjørn Kjosvold

Articles 74 and 83 of the Convention on the Law of national Court of Justice. The Court delivered its the Sea, which relate to the exclusive economic judgment in 1993, and the agreement on the zone and the continental shelf respectively, agree- delimitation of the continental shelf and the ments of this kind are to be based on international boundary between the fisheries zones in the area law so as to achieve an equitable solution. Accord- was signed in 1995. The International Court of ing to case law established by the International Justice was not able to consider the issue of a Court of Justice, the starting point is that the smaller sea area between Jan Mayen, Greenland delimitation line should follow the median line and Iceland because Iceland was not a party to the between the two states’ coastlines. The Court has, case. Delimitation of this area was agreed in 1997 however, indicated that certain objective geo- following negotiations between the parties. With graphical factors, such as the length and direction this, the entire extent of the fisheries zone around of the coastlines, may, under certain conditions, Jan Mayen was settled. call for an adjustment to the median line. Norway In 2006 an agreement was concluded between has signed delimitation agreements in the High Norway and Denmark together with the Home North with Iceland, Denmark (Greenland) and Rule Government of Greenland on the delimita- Russia. tion of the continental shelf and the fisheries In 1980, following extensive negotiations, an zones in the area between Greenland and Sval- agreement was concluded with Iceland on the bard. The same year agreed minutes were signed establishment of a Conciliation Commission on on the delimitation of the continental shelf beyond the Continental Shelf area between Iceland and 200 nautical miles between Norway, Iceland and Jan Mayen. The Commission presented its recom- the Faroe Islands in the southern part of the mendation, which was subsequently put into Banana Hole of the Northeast Atlantic. These effect, in 1981. Negotiations with Denmark on establish a basis for delimitation of the continental delimitation of the area between Jan Mayen and shelf in the southern part of the Banana Hole. Greenland were conducted from 1980 to 1988, Final delimitation agreements will be concluded when Denmark brought the case before the Inter- once the Commission on the Limits of the Conti- 64 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

Figure 5.3 Schematic chart showing the delimitation of the continental shelf and the economic zones in the Barents Sea and the Arctic Ocean between Norway and Russia. (Dotted red line: delimitation in the 2007 agreement. Solid red line: delimitation line between the coordinates in the 2010 treaty) 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 65 The High North nental Shelf has made its recommendations. The was reached on maritime delimitation between final boundaries will have to be formalised in a Norway and Russia in the whole of the previously separate agreement based on the agreed minutes. disputed area. The Treaty between the Kingdom The maritime boundary with Russia in the of Norway and the Russian Federation concern- Varangerfjord area was agreed between Norway ing Maritime Delimitation and Cooperation in the and the Soviet Union in 1957. Under the agree- Barents Sea and the Arctic Ocean was signed by ment the breadth of Norway’s sea territory was the foreign ministers of the two countries in Mur- set at four nautical miles, while Russia’s was set at mansk on 15 September 2010. Under the agree- 12 miles. With effect from 2004, the breadth of ment, the disputed area of 175 000 square kilome- Norway’s territorial sea was extended from four tres was divided into two parts of approximately to 12 nautical miles and a contiguous zone exten- the same size, each of about 87 000 square kilome- ding to 24 nautical miles was established. This tres. gave rise to a need to determine a delimitation line In addition to establishing the delimitation for the territorial seas, the exclusive economic line, the historic agreement contains provisions zones and the continental shelf between Norway that ensure the continuation of the close Norwe- and Russia in the Varangerfjord area. Agreement gian-Russian fisheries cooperation, as well as pro- was reached on a 73 kilometre-long delimitation visions concerning cooperation on the exploita- line in 2007. tion of any transboundary hydrocarbon deposits. Further details are set out in the treaty’s two annexes. With the entry into force of the treaty on 5 5.3 Treaty with Russia on maritime 7 July 2011, the Grey Zone Agreement no longer delimitation and cooperation in the Barents Sea and the Arctic 5 Agreement between Norway and the Soviet Union on a Temporary Practical Arrangement for Fishing in an Adja- Ocean cent Area in the Barents Sea (the Grey Zone Agreement). The agreement was first concluded on 11 January 1978 as a The issue of maritime delimitation between Nor- provisional practical arrangement pending agreement on way and Russia in the Barents Sea and the Arctic maritime delimitation in the Barents Sea, and was extended for a year at a time until 7 July 2011, the date on which the Ocean was the object of extensive negotiations for Treaty concerning Maritime Delimitation and Cooperation 40 years. In 2010, however, tentative agreement in the Barents Sea and the Arctic Ocean entered into force.

Figure 5.4 Exchange of ratification instruments for the maritime delimitation treaty. Akershus Castle, 7 June 2011. 66 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

Box 5.2 Negotiations on the Maritime Delimitation Treaty In 1967, Norway proposed to the Soviet Union lengths of the parties’ coastlines. In this case, for the first time that the two countries should the relevant Russian coastline was considerably start negotiations on delimitation of the conti- longer, and called for certain adjustments of the nental shelf in the Barents Sea. An informal delimitation line in a westerly direction in rela- meeting was held in 1970, and talks at senior tion to the computed median line, particularly in official level began in 1974. The Norwegian star- the southern part of the area. ting position for the negotiations was that the From 2006 onwards the discussions were delimitation line should follow the median line. intensified, and in July 2007 the two parties sig- The Soviet Union’s position was that the delimi- ned an agreement on maritime delimitation of a tation line should follow straight lines running coastal area at the mouth of the Varangerfjord. along longitudes 32 and 35o E, in accordance On 27 April 2010, the Norwegian and Russian with a Soviet decree of 1926 which stated that all foreign ministers signed a joint statement territory, discovered and undiscovered, to the announcing that the negotiating delegations of east of this belonged to the Soviet Union. The the two countries had reached preliminary agre- differing views of the two countries meant that ement on the remaining maritime delimitation there remained a disputed area of approximately issues. The Treaty concerning Maritime Delimi- 175 000 square kilometres to which both parties tation and Cooperation in the Barents Sea and laid claim. the Arctic Ocean was signed by the two coun- The process of establishing the legal princi- tries’ foreign ministers in the presence of Prime ples for delimitation of the continental shelf and Minister Jens Stoltenberg and President Dmitry 200-mile zones has been one of the most contro- Medvedev on 15 September 2010. The treaty versial issues in international law. The Internati- defines the boundary between the Norwegian onal Court of Justice has helped to clarify the and Russian continental shelves and the two rules of international law in this area, particu- countries’ 200-mile zones, over a distance of larly since the beginning of the 1990s. Basically, 1 680 kilometres. the Court has consolidated a coherent method The Norwegian Storting gave its consent to where the first step is to mathematically com- ratification of the treaty on 8 February 2011. The pute a hypothetical median line. The next step is Russian Duma took the decision to ratify the to assess whether there are any geographical treaty on 25 March 2011, and the Federation peculiarities that would render a median line Council approved ratification on 30 March 2011. solution inequitable. There may be reason to The instruments of ratification were exchanged adjust or move the delimitation line, particularly on 7 June 2011 and the treaty entered into force in cases where there are major disparities in the on 7 July 2011.

applies. The Maritime Delimitation Treaty has enhance the development of their culture, liveli- resolved the most crucial outstanding issue in our hoods and way of life. Norway’s Sami policy is bilateral relations with Russia, and paves the way based to a large extent on these international legal for the further development of Norwegian-Rus- obligations. sian cooperation. Indigenous peoples are not typically the domi- nant group in the larger society to which they belong. Thus, majority democratic rule does not 5.4 The rights of indigenous peoples necessarily safeguard their rights as a people. Indigenous peoples have the right to self-determi- The Sami are recognised as an indigenous people nation both in the form of self-government in mat- in Finland, Norway, Sweden and Russia. They ters relating to their internal and local affairs and have lived and used the land in these countries through participation in public decision-making since before the nation states were established. processes. The establishment of the Sami Parlia- International legal standards have been developed ment (Sámediggi) must be viewed as a recogni- to ensure the participation of indigenous peoples tion of this. The Norwegian Government has in political processes and to safeguard and transferred administrative responsibilities to the 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 67 The High North

Sami Parliament and established separate proce- tion on the Rights of Indigenous Peoples adopted dures for consultations between the central by the UN General Assembly in 2007 contains authorities and the Sami Parliament. Law relating important guidelines for further work on under- to indigenous peoples also encompasses issues standing the rights of indigenous peoples, related to land and water rights, cultural activity, although it is not a binding document in interna- language and education. tional law. Norway has signed several international con- A number of other conventions including the ventions, declarations and agreements that have European Convention on Human Rights, the relevance for indigenous peoples. The Interna- European Charter for Regional or Minority Lan- tional Covenant on Civil and Political Rights, the guages and the Convention on Biological Diver- International Covenant on Economic, Social and sity also have implications for Sami policy. The Cultural Rights, the UN Convention on Biological objectives of the Convention on Biological Diver- Diversity and the UN Convention on the Rights of sity are the conservation and sustainable use of the Child all have considerable significance for biological diversity and the fair and equitable shar- indigenous peoples. These conventions have all ing of the benefits arising out of the utilisation of been incorporated into Norwegian law under the genetic resources. The Convention recognises the Human Rights Act and take precedence over close dependence of indigenous peoples on bio- other legislation that may conflict with them. The logical resources and Article 8 (j) sets out that international instrument that deals specifically states are required to respect, preserve and main- with the rights of indigenous peoples is ILO Con- tain the traditional knowledge of indigenous peo- vention No. 169 concerning Indigenous and Tribal ples that is relevant for the conservation and sus- Peoples in Independent Countries. The Declara- tainable use of biological diversity. 68 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

6 Security and defence

Figure 6.1 Norwegian Coast Guard vessels Sortland and Barentshav on patrol in the Barents Sea. Photo: Norwegian Armed Forces Media Centre/Fredrick Hoffeker/Norwegian Coast Guard

The High North is attracting growing interna- icy therefore needs to be based on an extended tional interest. There is a high degree of common security concept1, in the High North in the same understanding in the region and constructive dia- way as in other regions. Growing human activity logue and increasing cooperation between the var- in the region as the sea ice melts and retreats is ious actors, particularly the Arctic states. As accompanied by a higher risk of accidents at sea, things stand, the potential for conflict is limited. pollution, and environmental degradation as a This is quite different from the situation that pre- result of a growing volume of shipping and more vailed during the Cold War, when military and use of resources. Key elements of Norway’s secu- strategic considerations shaped developments in rity policy include working towards implementa- the region. Today, there are other driving forces tion of the UN Convention on the Law of the Sea behind developments in the region, but at the by all countries, cooperation in international and same time the situation is more complicated and regional forums, and practical bilateral coopera- less clear-cut, due to increased civilian and com- tion to address new challenges. This chapter mercial activity. focuses on the need for an increased presence in Climate change, easier access to natural the High North as a result of the changes that resources and growing human activity mean that have taken place in recent years, and on the role more attention is being focused on the High North, and that there is greater potential for both 1 Territorial security, ecological security, economic security, cooperation and conflicts of interest. Security pol- social security and political security. 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 69 The High North of the Norwegian Armed Forces and their interac- any other state; rather, it reflects the fact that Nor- tion with other actors. way has important assets and interests to defend. Showing a presence is a goal in itself. Norway pro- motes stability by having a clear military presence The Norwegian Armed Forces in the High North and operating in a consistent and predictable way. According to the Government’s High North Strat- Today, the Armed Forces’ presence in North Nor- egy, Norway will continue its tradition of predicta- way is a permanent part of the status quo. Norway ble exercise of sovereignty. Moreover, Norway must also have the capacity to prevent difficult sit- will exercise its authority in the sea areas that are uations arising, and to handle any situations that under its jurisdiction in a credible, consistent and do arise adequately, using appropriate means. predictable way. As the Arctic becomes more Through the Coast Guard, the Armed Forces accessible and the level of activity in the region have well-established cooperation with the fisher- increases, it will be more important than ever for ies authorities. Every year, the Coast Guard car- all states involved to act predictably and in accord- ries out 1500–2000 inspections of Norwegian and ance with the Law of the Sea. foreign fishing vessels. Living marine resources The Norwegian Armed Forces’ growing pres- are a strategic resource for Norway. It is therefore ence and higher level of activity in the region are important to ensure compliance with Norwegian an integral part of the Government’s High North legislation in this area. strategy. In the long-term plan (2009–12) and the The Armed Forces’ aircraft have the capacity to Strategic Concept for the Norwegian Armed detect oil spills. A number of coast guard vessels Forces, the Government has given developments are equipped with oil booms, and in cooperation in the High North a central place in terms of with the Coast Guard, high-risk vessels sailing organisation, planning and resource use. The Nor- along the coast are kept under close surveillance. wegian Joint Headquarters has been established The Armed Forces currently have 14 vessels in Bodø, the Coast Guard has been strengthened specially built for coast guard tasks. In 2012, the and the main focus of army activities has been Navy will have a total of six new Skjold-class fast consolidated in the north, all of which testifies to attack craft which are known for their speed and the priority the Government gives to the High adaptability in operations in littoral waters. In North. The importance the Government attaches addition, there are five new frigates. The Orion to greater Norwegian visibility in the northern sea aircraft are being upgraded, and once completed areas can be seen in the increase in the operating will function as state-of-the-art airborne surveil- budgets for the Coastal Squadron and Coast lance platforms. Guard, and the phasing in of new vessels. The The Armed Forces have an important role to Norwegian Intelligence Service plays a key role in play in terms of surveillance and intelligence, the surveillance in the High North and has received exercise of sovereignty and authority, and inci- increased resources. dent and crisis management. The Norwegian model for civilian–military cooperation gives a better understanding of the situation and What is meant by a “presence” in the High North? enhanced operational preparedness when dealing In recent years, the Government has given prior- with cross-sectoral issues and ensuring civilian ity to modernising the Navy and the Air Force, and military security. Maintaining a military and with a view to maintaining an appropriate pres- civilian presence, combined with appropriate ence and gaining better situation awareness in our capabilities and a good understanding of the situa- sea areas. Key capabilities have been strength- tion, promotes stability and provides a good foun- ened, for example new frigates and new coast dation for international cooperation in the region, guard vessels have been acquired. Moreover, new including under the auspices of NATO. Our mili- maritime helicopters are being procured for frig- tary presence is also essential for civilian pur- ates and coast guard vessels. The maritime heli- poses, in connection with preparedness and copter fleet is concentrated in Bardufoss in response, search and rescue, the environment, Troms, with a detachment in Haakonsvern near and access to information. Bergen to support the frigate flotilla. The planned The Government will facilitate a greater allied procurement of new combat aircraft to replace the presence in the region through exercises in areas current F-16s will enhance Norway’s surveillance close to Norway, and there are annual military and rapid reaction capabilities in the High North. exercises involving Norway’s allied and partner The Armed Forces’ presence is not directed at countries. 70 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

member states and neighbouring areas, with a Nordic cooperation particular focus on situation awareness, military Nordic security and defence policy cooperation planning and presence, for example in the form of has increased in recent years. In concrete terms, exercise and training activities. The Government Nordic defence cooperation includes fighter air- considers it important for NATO to develop a craft training in the High North, and the Swedish– closer regional focus and to maintain its presence Norwegian joint procurement of the Archer artil- in the High North through exercises and training. lery system. The Finnish procurement of the Nor- This should be done in a transparent and predicta- wegian Advanced Surface-to-Air Missile System 2 ble way that does not increase the level of military (NASAMS II) also paves the way for expanded tension. A powerful NATO that conducts exer- cooperation. Sweden and Finland are in the pro- cises in the High North is in no way incompatible cess of joining NATO’s Air Situation Data with the development of good and close neigh- Exchange (ASDE) programme, which will greatly bourly relations between Norway and Russia. enhance the air situation information available to Rather, NATO’s presence should be seen as one the Nordic countries. In the Nordic declaration of of a number of factors that contribute to stability solidarity, which was signed by the Nordic foreign and predictability in the region. ministers on 5 April 2011, the countries state their willingness to assist one another in the event of natural or man-made disasters, cyber attacks or Cooperation with Russia terrorist attacks. Any assistance of this kind will Norway’s border with Russia is not just a border be in accordance with the national policies of each between two states, it is also the external border country, and will come in addition to their partici- of the Schengen area. The Norwegian Armed pation in European and Euro-Atlantic cooperation Forces are responsible for exercising sovereignty structures. along the border, and the border guards assist the In the 2009 Stoltenberg Report, Nordic Coop- police, who are responsible for border control. To eration on Foreign and Security Policy, the Nordic an increasing extent, Norway is cooperating with countries show their intention and willingness to Russia’s armed forces, border guards and coast strengthen their cooperation on foreign and secu- guard, and both countries have expressed an rity policy within the frameworks of their respec- interest in further strengthening this cooperation. tive memberships of the EU and NATO. This is Since 2001, Norway and Russia have drawn up an part of a new trend towards closer cooperation annual bilateral military activity plan. This plan throughout Europe, but the history of the Nordic helps to facilitate military cooperation between region means that it has particular advantages. In the Norwegian and Russian armed forces, and the High North, it is in our relations with Finland includes high-level meetings between the Com- and Sweden that we see the greatest opportunities mander of the Northern Fleet and the head of for closer cooperation. The Government will seek Norwegian Joint Headquarters, vessel visits in to deepen this cooperation, in line with strong Norway and Russia, meetings between junior Nordic traditions of making strategic choices and officers and bilateral maritime exercises. Russian following them up with concrete action. military activity in the High North has increased considerably in recent years from a low level in the period immediately following the Cold War. The role of NATO The increased level of activity is not considered to Through NATO’s integrated air defence, the Alli- be directed at Norway, but is seen as a reflection ance participates in surveillance in North Norway of Russia’s strategic objectives in the region. Nev- and helps Norway exercise its sovereignty. It is ertheless, Norway is following developments important for Norway that our allies understand closely. and are well-informed about developments in the Military cooperation with Russia is important High North. Norway has therefore put the High in building trust between our two countries. Most North on the agenda in NATO, for example in dis- of our cooperation focuses on the High North, cussions in the North Atlantic Council, in which where we are facing a number of shared challen- Norway has on a number of occasions briefed our ges. Norway aims to further develop military allies on key developments in the region. The cooperation with Russia, so that the focus is no aims of Norway’s core area initiative are reflected longer on activities organised in connection with in NATO’s new Strategic Concept, which puts visits, as is often the case today, but rather on acti- greater emphasis on security challenges in the vities that increase our capability to collaborate in 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 71 The High North

Figure 6.2 Russian Admiral Nikolay Mikhaylovich Maksimov, Chief of Staff of the Western Military District, and Lieutenant General Bernt Iver Ferdinand Brovold, head of Norwegian Joint Headquarters, outside the Royal Palace in Oslo following an audience with His Majesty King Harald V. Photo: Norwegian Armed Forces Media Centre / Anton Ligaarden this area, such as small-scale land, sea and air military means. In addition to Norway’s existing exercises. Cooperation, transparency and predic- maritime cooperation with Russia, efforts are tability will enhance our ability to collaborate under way to organise joint training activities with when dealing with any future crises, including by small Russian military units in 2012.

Box 6.1 The Incidents at Sea Agreement Since 1990, Norway and Russia have held regu- ment applies outside territorial waters, and sets lar consultations based on the bilateral Incidents out prohibitions, requirements and communica- at Sea Agreement. The purpose of this agree- tion procedures for vessels and aircraft. Both ment is to prevent dangerous situations from countries consider the agreement to be an arising when Norwegian and Russian naval ves- important tool for preventing incidents from aris- sels and military aircraft are operating in the ing and for resolving shared challenges. immediate vicinity of one another. The agree- 72 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

Box 6.2 The Pomor exercises In June 2010, Norway and Russia carried out a boarding operations and air defence cooperation. joint maritime exercise, called the Pomor exer- Several branches of the armed forces are invol- cise, in an area extending from Bergen to the ved. The name Pomor is used in reference to the Russian port of Severomorsk. A second Pomor Pomor trade, the close trade relations between exercise was carried out in the period 9–17 May northwestern Russia and northern Norway from 2011, starting in Severomorsk and ending in 1740 until the Russian revolution. The motto for Tromsø. These exercises have focused on com- the Pomor exercise in 2011 was “friendship – mon challenges and solutions relating to collabo- cooperation – security”. The Pomor exercises ration on maritime security operations. They are an important step in further development of include a range of operations, from navigation cooperation between Norway and Russia. and communication procedures to shooting,

Figure 6.3 Norwegian Coast Guard vessels Sortland and Barentshav meet a Russian destroyer at 72°N 14°E in the Barents Sea. Photo: Norwegian Armed Forces Media Centre / Fredrick Hoffeker / Norwegian Coast Guard 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 73 The High North

7 Cooperation in the High North

Figure 7.1 Norwegian border guards demonstrate equipment for their Russian counterparts. Photo: Barentsphoto

Cooperation in the High North takes place both The cross-border cooperation that has been at the bilateral level and through regional and developed in the High North between regions in local authorities and organisations. Norway’s Norway, Sweden, Finland and Russia is unique. bilateral cooperation with Russia is in a class of Since the first Barents cooperation structures its own. were established in 1993, the region has devel- The counties in North Norway have long oped into one of the most dynamic regions for played an active role in the international arena, cross-border cooperation in Europe. Nordland, developing ties with Russian, Nordic and Euro- Troms and Finnmark counties, as well as a num- pean partners. Norway’s northern counties first ber of municipalities, towns and villages, have established links with partners in Russia towards signed cooperation agreements and friendship the end of the Cold War. As early as 1987, Nord- agreements with partners in neighbouring coun- land county established cooperation with what tries. Cooperation agreements have also been was then Leningrad oblast. Finnmark county signed at county governor level. Over the past 20 signed its first cooperation agreement with Mur- years this cooperation has linked countries, mansk oblast in 1988. Thus the counties’ interna- regions and peoples together in an exceptional tional engagement served as an example for what way. The Barents region is considered one of the was later to become the Barents cooperation. five most promising areas in the world for busi- 74 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North ness activities1, and there are strong indications ties that exist in the region and achieve sustaina- that investments in the region’s business sector ble growth and development. and infrastructure will increase substantially in Bilateral relations between Norway and Russia the years to come. are good, and have been improving steadily in A wide range of cooperation projects have led recent years. This cooperation is in continuous to the establishment of good people-to-people rela- development and the network of contacts has tions, which in turn have laid the foundation for grown. On the whole, relations between the two intergovernmental relations on an even broader countries are based on a mutual willingness to scale. The regional cooperation is based in the engage in constructive dialogue. Both countries north and is driven by regional and local actors. In endeavour to take a pragmatic approach to solving order to realise the goals of its High North policy, conflicts of interest and problems, which arise the Government attaches great importance to from time to time in different areas of cooperation. close cooperation with counties, municipalities Important areas, such as fisheries, trade and eco- and other relevant actors in North Norway. The nomic affairs, the environment and nuclear safety, Sami Parliament (Sámediggi) and the Sami Parlia- are coordinated by bilateral government commis- mentary Council play a key role in efforts to pro- sions. The commissions serve as important are- mote cross-border cooperation and cultural nas for discussing and resolving challenges and exchange between indigenous peoples in the for strengthening efforts in these areas. High North. The bilateral cooperation is based on a sound For Norway, the Barents cooperation and the legal framework, and the body of agreements is Arctic Council are the most important arenas for growing. In 2010, five government-level agree- promoting Norwegian policy in the High North. ments were signed. In addition to the treaty on The Northern Dimension and Nordic cooperation maritime delimitation and cooperation in the Bar- under the Nordic Council and the Nordic Council ents Sea and the Arctic Ocean (see Chapter 5.3), of Ministers are also key forums. Regional actors two agreements were signed on judicial coopera- and arenas play a crucial role in the realisation of tion, one on educational cooperation and one on Norway’s High North policy. the implementation of a local border traffic regime. Norway and Russia have enjoyed a thousand 7.1 Russia years of peaceful coexistence. Relations between the two countries have been based on understand- Of the five coastal states bordering the Arctic ing and respect, mutual assistance and a prag- Ocean, Russia has the longest Arctic Ocean coast- matic approach to solving problems. However, line. Russia’s northern areas have a sizeable popu- Norway’s relations with Russia will never be com- lation (cf. table 3.1), high levels of economic activ- pletely straightforward. Russia is a major power ity and abundant natural resources, both renewa- and for this reason the relationship between the ble and non-renewable. Russia is a constructive two neighbouring countries is asymmetrical. The player in the High North and appears to take the divide in values continues to be a challenge. There view that its interests are best served by keeping is a long way to go before Russia is a fully demo- tensions low and promoting cooperation. cratic society in which human rights are Strengthening Norway’s relations with Russia respected. For Norwegian companies the greatest is one of the main pillars of the Government’s obstacle to a further expansion of cooperation is High North policy. Developing contacts and coop- the lack of protection for investments. A bureau- eration across the border has a clear security cratic culture, corruption and unpredictable law dimension. Defence cooperation plays an impor- enforcement create problems in areas such as tant role both in terms of building trust and when company registration, the purchase of property, it comes to the establishment of joint emergency and customs and visas. preparedness and response systems in the face of One of Norway’s objectives is to ensure that new threats and potential crises. Cooperation with its policy is consistent, clear and predictable. This Russia in areas such as natural resource manage- is the best way we have of defending our interests. ment, new transport routes, the environment, In the long term the aim is for our relations with health and quality of life will also be vital if we are Russia to be like our relations with our other to be able to take full advantage of the opportuni- neighbouring countries in the High North, char- acterised by unhindered contact at all levels and 1 Monocle, December 2010 in all areas of society. All the practical steps Nor- 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 75 The High North way and Russia have taken together, and that they The Joint Norwegian-Russian Fisheries Commis- will take in the years to come, are significant in sion is one of the most established forums for terms of achieving this goal. This also applies to cooperation we have with Russia. From an inter- cooperation with Russia at the international level. national perspective Norwegian–Russian fisheries The Government is seeking to improve the cooperation is unique and extremely successful. framework for cooperation with Russia in the See also the fact box on Norwegian-Russian fish- High North. On Norway’s initiative, a joint decla- eries cooperation in Chapter 11.1. ration on enhanced Norwegian-Russian cross-bor- Current visa requirements are perhaps the der cooperation has been negotiated, which was greatest practical obstacle to cooperation between signed by the countries’ foreign ministers in Oslo Norway and Russia. A special scheme that allows on 2 November 2010. The declaration has been Russian citizens resident in Murmansk and followed up by the development of a work plan Arkhangelsk to apply for multiple-entry visas with- outlining concrete measures. Establishing a good out first obtaining an invitation, the Pomor visa, framework for areas such as visas and border pro- was introduced in 2008. This has made it much cedures, work permits and customs is essential easier for people living in these areas to travel to for the further development of cross-border coop- Norway. Some two thirds of all the visas issued at eration. Efforts to follow up the declaration there- the Norwegian Consulate General in Murmansk fore focus on these key areas, as well as on closer are now Pomor visas. cooperation in the areas of education and The Government’s long-term aim is the estab- research, indigenous peoples, tourism and agri- lishment of a visa-free regime with Russia. Work- culture. A separate action plan has been drawn up ing towards this aim, the Government is seeking for cultural cooperation in the High North. to gradually ease visa procedures for Russian citi- Economic cooperation with Russia is showing zens. a positive trend, but there remains considerable As a Schengen member state, Norway must potential for growth in this area. Following a adhere to the Schengen states’ common visa pol- decline in trade between Norway and Russia in icy. The EU has now developed a roadmap whose 2009 – primarily as a result of the international long-term aim is the establishment of a visa-free financial crisis – bilateral trade increased in 2010. regime between the EU and Russia. As a step The Government is currently preparing a targeted towards this, the EU is currently working on rene- strategy for business cooperation with Russia. gotiating the existing visa facilitation agreement This work is being carried out by the Ministry of between the EU and Russia. The Norwegian Gov- Trade and Industry in close cooperation with ernment supports these efforts. other ministries that have business interests in During the current parliamentary period, the Russia. Government will review the visa application pro- A declaration on partnership for modernisa- cess with a view to further easing visa procedures tion was signed by Norway and Russia on 28 Feb- for Russian citizens within the framework of the ruary 2011. Creating a predictable business cli- Schengen cooperation, pending the introduction mate and ensuring protection for investments are of a completely visa-free regime with Russia. among the main goals of the economic coopera- The agreement on the implementation of a tion between the Norwegian and Russian authori- local border traffic regime, which was signed on 2 ties. Some 70 Norwegian companies from a wide November 2010, is an important step in the pro- range of branches are currently operating in the cess towards facilitating local border traffic. Nor- Russian market. Around 40 of these are located in way is the first of the Schengen countries to sign Murmansk. Business development in the High an agreement of this kind with Russia. The agree- North is a key component of the Government’s ment will allow visa-free border crossing for per- High North efforts. Closer cooperation with Rus- manent residents who live within 30 kilometres of sia, which is the most important foreign market the state border in both Norway and Russia, and for many companies in North Norway, is there- is expected to enter into force during the course fore essential. of spring 2012. The introduction of local border Norway’s cooperation with Russia in the fish- traffic permits is expected to lead to an increase in eries sector provides a basis for a thriving fisher- local traffic over the border in both directions. ies industry and viable coastal communities in the The issue of work permits also poses a chal- north and illustrates how crucial it is to establish lenge for companies that would like to be able to stable, bilateral management regimes and cooper- make use of labour from the other side of the bor- ation based on trust with neighbouring Russia. der when the need arises. In 2009 Norway intro- 76 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

Box 7.1 Norwegian-Russian economic cooperation Economic cooperation between Norway and This business cooperation in the north also ser- Russia is strong and has been gradually develo- ves to raise Norway’s profile in Moscow. Coope- ping since the collapse of the Soviet Union. The ration with Russia is crucial for North Norway, most important forum for cooperation is the and Russia is the most important foreign market Norwegian-Russian Governmental Commission for many companies in North Norway. on Economic, Industrial and Scientific-Technical In recent years it has been primarily small Cooperation headed by the Norwegian Minister and medium-sized enterprises that have establis- of Trade and Industry and the Russian Deputy hed themselves in northwestern Russia. Several Prime Minister. Cross-border cooperation is one of these are companies that specialise in provi- of the commission’s highest priorities. ding supplies and services to the petroleum sec- In 2010, trade between Norway and Russia tor. Petroleum development on the Russian con- amounted to approximately NOK 17 billion, only tinental shelf offers substantial opportunities 1.37 % of Norway’s foreign trade. Nevertheless, both to companies in North Norway and to com- Russia is an important market for Norway, in panies in southern and western Norway whose particular for Norwegian seafood, and is one of activities are directly or indirectly linked to the the Government’s priorities in free trade negoti- petroleum industry. Other relevant branches of ations. EFTA began free trade negotiations with industry in this context are banking, the pro- the Russia, Kazakhstan and Belarus customs perty industry, the hotel industry, consultancy union in January 2011. Russia is one of our lar- services and the fisheries industry. There is also gest export markets for fish and seafood, as is great potential for cooperation in the areas of France. transport and logistics. From time to time the Since the financial crisis, the Russian autho- Norwegian authorities receive reports from rities have seen a need to modernise and diver- Norwegian companies and investors operating sify the economy in order to avoid political and in the Russian market of difficult conditions and economic marginalisation. In February 2011, a lack of predictability, for example in connec- Norway and Russia signed a declaration on part- tion with work permits, border procedures and nership for modernisation. For Norway the the rule of law. The Norwegian authorities are most important tasks of a partnership of this working actively on several different fronts to kind are to promote investment and the estab- improve the framework for doing business in lishment of new businesses in Russia and to Russia, and the challenges facing companies ensure the active engagement of the private sec- operating in the Russian market are discussed at tor. These will be important elements of the stra- bilateral meetings with our Russian partners. tegy for business cooperation with Russia, Cooperation between Norway and Russia on which is currently being drawn up. maritime safety is also organised under the Some 70 Norwegian companies are active in government commission for economic coopera- Russia, representing a wide range of industries. tion. In addition, cooperation on radio navigation The largest companies have established them- has been initiated under this commission, and in selves in Moscow, but a number of small and 2010 an agreement was signed on linking the medium-sized enterprises are also active in St two countries’ ground-based radio navigation Petersburg, Murmansk and Kaliningrad. Some systems in the High North. 40 companies currently operate in Murmansk.

duced a scheme whereby unskilled workers from problems for Norwegian-owned companies. In the Russian part of the Barents region may be July 2010 Russia introduced simplified work per- issued with two-year work permits for employ- mit procedures for skilled labour from abroad, ment in North Norway. In addition, work permit which has improved the situation for Norwegian rules for all foreign skilled workers have been companies as well. The Government will work eased. In Russia, complicated and time-consuming actively to improve the framework conditions for procedures for work permits have long caused 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 77 The High North

Figure 7.2 Geographical scope of the Norwegian-Russian agreement on local border traffic. labour mobility across the Norwegian-Russian purposes of tourism, trade, work or family visits border. account for most of the traffic. The number of bor- The number of border crossings over the Nor- der crossings is expected to rise significantly in wegian-Russian border at Storskog has risen the years to come, largely as a result of the simpli- steadily in recent years. This is a positive develop- fied visa procedures for Russian citizens in north- ment that illustrates the increasingly wide-ranging western Russia (the Pomor visa). and diverse ties between Norway and Russia in A rise in traffic of this kind will place increas- the north. Whereas in the 1980s there were only a ing pressure on the infrastructure on both the few thousand border crossings per year, in 2010, Norwegian and the Russian sides of the border. 140 855 people and 43 642 vehicles crossed the As a result of the sharp increase in the number of border. Cross-border traffic was 39 % higher in border crossings in recent years, capacity at the October 2011 than in the same period the previ- Storskog border station is now too small. The ous year. Russian citizens visiting Norway for the planned introduction of the local border traffic 78 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

Box 7.2 Norwegian-Russian agreement on local border traffic The agreement between Norway and Russia on – Holders of local border traffic permits may facilitation of mutual travel for border residents stay in the neighbouring state’s border area was signed by Foreign Ministers Jonas Gahr Støre for up to 15 days at a time without a visa. and Sergei Lavrov in Oslo on 2 November 2010. There is no limit on the total length of stay in the other state’s border area within the The agreement establishes the following: period of validity of a border traffic permit. – The local border traffic permit does not in – Border residents who have been legally resi- itself grant the right to work in the neighbou- dent in the border area for at least the three ring state’s border area. previous years may be issued with a local bor- – The Norwegian Consulate General in Mur- der traffic permit valid for up to three years. mansk will issue local border traffic permits – The border area is defined as: to residents of the Russian border area. The Norway: That part of Sør-Varanger munici- Russian Consulate General in Kirkenes will pality that lies within 30 km of the issue local border traffic permits to residents state border. of the Norwegian border area. Russia: The area within 30 km of the state – The agreement will enter into force when the border, including Nikel and necessary procedures have been completed Pechenga, as well as the whole of in Norway and Russia, probably in spring Zapolyarny district and Korzunovo. 2012.

permit in 2012 is expected to further exacerbate Government has also proposed increasing the this situation. The Government therefore decided number of staff at Storskog in 2012. in autumn 2011 to implement immediate meas- The Government intends to build a new bor- ures to improve the flow of traffic in the short der station at Storskog. A pilot project is currently term. These include increasing border control being developed by the Directorate of Public Con- capacity for incoming and outgoing traffic. The struction and Property (Statsbygg). More infor-

Figure 7.3 Storskog border station. Cars and buses at the border crossing point. Photo: Aftenposten / Ole Magnus Rapp 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 79 The High North

Box 7.3 Energy dialogue between Norway and Russia The energy dialogue between Norway and Rus- mote cooperation with Russian companies and sia began on 1 July 1992 with the signing of a the Russian authorities in the field of technology memorandum on cooperation by the two coun- for the measurement, monitoring, verification tries’ energy ministers. Since the turn of the mil- and reporting of emissions of various gases and lennium the energy dialogue has been strengt- particulate matter from petroleum production. hened and its scope expanded. Norway’s efforts The Norwegian partners are Carbon Limits, the in this area are headed by the Ministry of Petro- Fridtjof Nansen Institute and the Norwegian leum and Energy. The Russian dialogue part- Petroleum Directorate. Work carried out under ners are the Ministry of Energy and the Minis- the project will be incorporated into the energy try of Natural Resources and Environment. dialogue between Norway and Russia. The aim of the dialogue is to strengthen and The entry into force of the treaty on mari- further develop energy policy cooperation bet- time delimitation between Norway and Russia ween the two countries and to promote the inter- on 7 July 2011 marks a new chapter in the ests of Norwegian oil companies and the Norwe- energy dialogue. The agreement includes provi- gian supply industry in Russia. sions relating to the unitisation of transboun- Energy efficiency is a key element of Nor- dary oil and gas deposits – i.e. it establishes that way’s energy and climate policy and a priority transboundary deposits are to be exploited as a area in the Government’s efforts to reduce unit. A new declaration renewing commitment greenhouse gas emissions and improve the to the energy dialogue was signed by the Nor- security of energy supply. In 2008 Russia indica- wegian Ministry of Petroleum and Energy and ted its desire to strengthen cooperation on the Ministry of Natural Resources and Environ- energy efficiency and renewable energy, and ment of the Russian Federation on 21 June 2011. during President Medvedev’s visit to Norway in This provides a good basis for strengthening the 2010 a bilateral memorandum of understanding cooperation between the two countries in this on cooperation on energy efficiency and renewa- area. A group of experts is to be established ble energy sources was signed. This agreement within the framework of the energy dialogue to is being followed up as part of the energy dia- ensure that both parties have a thorough under- logue between the two countries. standing of the issues connected with any joint Through the Barents 2020 programme, the petroleum activities in the Barents Sea, that are Ministry of Foreign Affairs is providing funding made possible by the maritime delimitation for an energy efficiency project designed to pro- treaty.

mation about the timing of this will be provided at mon challenges has led to the establishment of a a later stage. broad network and good working relations An agreement on cooperation at the Storskog- between a large number of institutions and official Borisoglebsk border crossing point was signed in bodies in Norway and Russia. In this way, environ- Oslo on 28 February 2011. Under the agreement mental cooperation has served as a springboard the Russian border station is to be granted inter- for cooperation in other areas. national status, which will allow it to clear all types Russia is fully committed to the environmental of goods through customs and extend the opening cooperation efforts, and there is particularly hours at the border. The Government also consi- active cooperation on the protection of the marine ders it important to facilitate the export of seafood environment. It is in this area that Norway and over the Norwegian-Russian land border. Russia have the most obvious shared interests Environmental protection has long been one of and face the greatest common environmental the pillars of bilateral Norwegian-Russian cooper- challenges. The two countries are also engaged in ation. Dynamic environmental cooperation also close cross-border cooperation focusing on areas takes place at the regional level under the Arctic of valuable natural habitat and common problems Council and the Barents Euro-Arctic Council. arising from pollution caused by nickel production Cooperation aimed at finding solutions to com- on the Russian side of the border. Following Presi- 80 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

Box 7.4 Norwegian-Russian environmental cooperation Over the past 20 years environmental cooperation ces. Pollution from the Pechenganickel Mining has become one of the most concrete and suc- and Metallurgical Combine, which has caused cessful areas of cooperation between Norway and substantial damage to forests, acidification of Russia. It includes protection of the marine envi- lakes, rivers and soil, and the accumulation of ronment, management of biodiversity, nature con- heavy metals in lichen and moss, is also monito- servation and environmental monitoring in the red and studied. Reducing emissions of sulphur border areas, the protection of the cultural herit- and heavy metals from the Pechenganickel plant age, the reduction of pollution, and work on radio- to a level that causes neither injury to health nor active pollution and climate change in the Barents environmental damage remains the major, unre- region. Bilateral cooperation efforts are closely solved issue in Norway’s environmental coopera- linked to regional cooperation under the Arctic tion with Russia. Sulphur emissions from the Council and the Barents cooperation. plant are currently approximately five times Nor- Cooperation on the marine environment, way’s total emissions. which is the most important element of environ- Cooperation on pollution reduction focuses on mental cooperation between Norway and Russia, sharing experience in the areas of control, moni- focuses on the development of the necessary toring and prevention of pollution as well as the knowledge base and an integrated and as far as implementation of selected measures, in particu- possible joint approach to sound management of lar in relation to the management of persistent, the Barents Sea. A milestone was reached in bioaccumulative and toxic substances. The pro- December 2009 when a joint Norwegian–Russian motion of more resource-efficient practices in the environmental status report for the Barents Sea business and municipal services sectors is an ecosystem was published. The report will be fol- important goal. The largest and most prolonged lowed up by the establishment of a joint environ- initiative to have been carried out in this area is mental monitoring programme for the whole of the programme for cleaner production, in which the Barents Sea and by the development of a con- close to 2 000 Russian engineers have received cept for an integrated management plan for the training in environmentally-friendly and resource- Russian part of the Barents Sea. This will be of efficient methods of production. In the future, vital importance in connection with increasing cleaner production will be crucial for eliminating commercial activity in the High North, particu- pollution “hot spots” in the Barents region, and larly in the oil and gas industry, fisheries and will also be important for the modernisation of maritime transport. The joint environmental Russian industry. monitoring programme and the integrated mana- Cooperation in the area of cultural heritage gement plan will create a framework for discussi- conservation has been ongoing since 1995. A cul- ons on expanding Norwegian-Russian offshore tural heritage initiative carried out in connection and business cooperation. with the Kenozero National Park in Arkhangelsk Cooperation on biodiversity focuses on redu- oblast was particularly successful. This focused cing losses of biological diversity, counteracting initially on the restoration of log buildings, but fragmentation of wildlife habitats and promoting was later expanded in scope to encompass sus- climate-resilient management. The establish- tainable industrial development. In 2009, another ment of a representative network of protected successful project was implemented; Russian areas in the Barents region will be a major project craftsmen were involved in the restoration of in the time ahead. Another important cooperation buildings in the fishing village of Hamningberg in area is the protection of the large coniferous fore- Finnmark. The buildings had originally been con- sts in the Barents region, as northern Europe’s structed by Russian settlers (Pomors) in the 19th last remaining virgin forests are to be found in century. this area. Other collaborative projects include Cooperation on climate issues, which began in conservation of mires and wetlands, protection 2011, will focus on knowledge-building, climate and management of threatened species such as change adaptation and selected measures to limit the lesser white-fronted goose, the polar bear and greenhouse gas emissions. Climate issues are the walrus, and the development of sustainable relevant for all the various areas encompassed by tourism in the Arctic. Norwegian-Russian environmental cooperation. Cross-border environmental cooperation focu- Bilateral cooperation on climate issues will be ses on the unique natural environment in the bor- organised in such a way that it complements coo- der areas between Russia and Norway and peration on climate change under the Barents encompasses cooperation on conservation of bio- Euro-Arctic Council and the Arctic Council. diversity, management of protected areas, and Cooperation on surveys of radioactive pollution: protection of joint populations and water resour- See box on nuclear cooperation. 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 81 The High North

Box 7.5 Cooperation with Russia on nuclear safety and nuclear preparedness Cooperation on nuclear safety is an important pass training and information activities in the component of Norway’s cooperation with Russia. nuclear power sector and broad-based coopera- It is also crucial for safeguarding health and the tion between national authorities in the areas of environment in Norway. It is an example of the inspection and enforcement, emergency prepar- pragmatic, constructive and targeted coopera- edness and response and environmental moni- tion that characterises our relations with Russia. toring, including joint expeditions in the Barents The Government presented a review of coopera- and Kara Seas. tion with Russia on nuclear safety and nuclear Nuclear energy use must be based on the preparedness in the white paper Cooperation highest safety standards. The Norwegian with Russia on nuclear activities and environ- authorities will continue to cooperate with Rus- mental protection in the High North (Report No. sia in areas related to safety and emergency pre- 11 (2009−2010) to the Storting). paredness, as well as on joint exercises. Safety at Cooperation in this area has helped to reduce the Kola and Leningrad nuclear power plants is the risk of nuclear accidents and radioactive pol- monitored closely by Norway. lution in our neighbouring areas. It has also con- Norway’s position regarding the Kola tributed to making the world safer and is an nuclear power plant is clear – safety standards at important component of international efforts to the oldest reactors are not satisfactory, and they secure radioactive materials and prevent their should therefore be closed. This is an issue that use in acts of terrorism. These efforts include the Norwegian authorities raise at regular inter- the nuclear security summits organised at the vals with the Russian authorities. Norway has initiative of US President Barack Obama. provided funding for safety measures at the Kola The cooperation has delivered measurable nuclear power plant but these measures are not and significant results as a result of both bilateral intended to extend the reactors’ lifetime. They and multilateral activities and efforts. Norway include training in safety and emergency prepar- has contributed to projects to dismantle five edness and measures to reduce the risk of acci- decommissioned nuclear submarines and to dents and the consequences should an accident bring spent nuclear fuel under government con- occur. The number of incidents reported at the trol. All of the 180 radioactive power sources for Kola nuclear power plant, classified according to lighthouses in northwestern Russia have been the International Nuclear Event Scale, decreased removed and replaced by solar panels. Efforts in from 41 in 1993 to 2 in 2009. this area are being continued in the Russian part Securing broad international commitment to of the Baltic Sea with the removal of 71 radioac- resolving the challenges in northwestern Russia tive power sources from lighthouses. Sweden has been one of the Norwegian Government’s and Finland are participating in this work. In the key goals. Many countries are now involved in Baltic Sea, too, all of the radioactive power this work, and effective coordination and cooper- sources in the lighthouses have now been ation arrangements have been established. Nor- removed and work is underway to install solar way takes part in multilateral efforts in north- panels. In addition, Norway has provided a sig- western Russia through the Northern Dimen- nificant amount of safety training and safety sion Environmental Partnership (NDEP) Sup- equipment at the Kola and Leningrad nuclear port Fund. To date, Norway has contributed power plants, which has led to a decrease in the EUR 10 million. In addition, Norway participates number of irregularities reported. in efforts carried out under the G8 Global Part- Cooperation between Norwegian and Rus- nership against the Spread of Weapons and sian inspection and administrative authorities Materials of Mass Destruction. Over a period of has been expanded, and there is now greater ten years Norway has contributed EUR 100 mil- openness about outstanding problems. Norway lion. is taking part in efforts to facilitate the removal It is in Norway’s interests that the interna- of spent nuclear fuel in Andreyev Bay, a disused tional involvement continues for as long as there naval base about 60 km from the Norwegian- remain unresolved problems in our neighbour- Russian border. This work, which aims to reduce ing areas. However, Russia itself bears the main the risk of radioactive pollution from the former responsibility for dealing with these issues, and naval base, will be one of the main priorities in we expect Russia to continue to make concerted the years to come. Norway’s efforts also encom- efforts to this end. 82 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

Figure 7.4 Thorvald Stoltenberg was awarded an honorary doctorate by the Northern (Arctic) Federal University in Arkhangelsk in 2011. Photo: Andrey Shalyov / BarentsObserver.com dent Medvedev’s visit to Norway in 2010, agree- Government will make a special effort to promote ment was reached that emissions from the Pech- research and education relevant for the develop- enganickel Mining & Metallurgical Combine are ment of cooperation between knowledge institu- to be reduced to a level that does not cause harm tions in North Norway and Russian institutions. In to health or the environment in the border area. It 2010 the Norwegian Ministry of Education and has been decided to set up a working group to Research and the Russian Ministry of Education monitor the progress being made in this area, so and Science signed an MoU on cooperation in the as to ensure that the authorities in both countries field of higher education, and the Norwegian have access to information about the modernisa- Meteorological Institute and Ministry of Natural tion efforts and to ensure that pressure to achieve Resources and Environment of the Russian Fede- a satisfactory solution is maintained. ration signed an agreement on cooperation in the A number of Norwegian universities and uni- field of hydrometeorology. Norway and Russia are versity colleges have developed close cooperation also conducting negotiations on a bilateral rese- with Russian institutions. In the time ahead, the arch and technology agreement.

Table 7.1 Figures showing the increase in the number of student exchanges between Norway and Russia

2003 2004 2005 2006 2007 2008 2009 2010 Norwegian exchange students in Russia 149 96 162 137 125 145 166 199 Russian citizens registered as students at Norwegian institutions 390 462 526 648 633 692 980 1 175 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 83 The High North

The traditional livelihoods of indigenous peo- ples often come under pressure when the pace of industrial development in a region is accelerated. Norway and Russia have therefore agreed to sup- port indigenous peoples by considering the possi- bility of developing guidelines and standard agree- ments governing contact between industry and indigenous peoples’ traditional livelihoods in the Figure 7.5 The logo of the Arctic Council. north. Cooperation between indigenous groups in the Barents region will make it easier to preserve indigenous traditions, for example when they change and mercury in the Arctic, that have provi- come into contact with potential growth industries ded important input to international work on cli- such as the mineral industry. mate-related issues and efforts to develop a global Norway’s cooperation with Russia in the field legally binding instrument on mercury2. Norwe- of health and social services will continue to be gian policy on the Arctic is developed primarily linked to the Barents Cooperation Programme on within the framework of the Arctic Council. Health and Related Social Issues (see fact box on There are two particularly important chal- the Barents cooperation, Chapter 7.3) and the lenges in the Arctic. The first of these is to Northern Dimension Partnership in Public Health address and mitigate global climate change. and Social Well-being (see fact box on the North- Efforts to reduce emissions of harmful green- ern Dimension, Chapter 7.4). The Government house gases, an issue that affects the entire world, will work actively to further develop Norway’s are dealt with in established multilateral negotiat- bilateral cooperation with Russia, with an empha- ing processes. sis on reciprocity. The second key challenge is to find ways of The University of Tromsø, the University Hos- managing the impacts of climate change. As a pital of North Norway, and the Northern Norway result of warmer temperatures in the Arctic the Regional Health Authority have cooperated with extent of the sea ice will be reduced for parts of the Northern State Medical University in Arkhan- the year. This will open up new opportunities for gelsk, the health authorities in Arkhangelsk, the commercial activities such as shipping and oil and St Petersburg State Medical Academy and the gas production. These activities will be carried out regional health authorities in Murmansk to in a vulnerable environment. Any development develop a masters degree programme in the field will be accompanied by a need to find the right of public health. The possibility of offering a simi- balance between exploiting the new opportunities, lar educational programme at PhD level is being environmental considerations and how to main- considered as a next step. tain the natural resource base on which the liveli- hoods of the indigenous peoples depend. Thus, we need to adapt to the climate change that is 7.2 The Arctic Council already taking place, in a sustainable manner, while at the same time reducing greenhouse gas The Arctic Council is the only government-level, emissions. These issues are given high priority by circumpolar body for political cooperation. In the Arctic Council. recent years the Council’s international influence Arctic cooperation was established following and importance has grown considerably. The Arc- the end of the Cold War. Its development can be tic Council provides a forum for discussion bet- divided into three phases. During the first decade, ween the Arctic states and representatives of indi- the cooperation focused on the prevention of pol- genous peoples on issues of common interest. In lution in the High North. Despite the fact that the this respect the Arctic Council is unique. There Arctic is a long way from major industrial areas, are currently several international arenas in there were found to be unacceptably high levels of which issues related to the Arctic region are dis- several persistent organic pollutants (POPs) and cussed. Only the Arctic Council, however, brings heavy metals, which are transported by air and together all the Arctic states and representatives ocean currents from areas further south. This of the indigenous peoples. In addition, the scienti- remains a significant problem. fic work of the Arctic Council has been strengthe- ned considerably over the years. The Arctic Coun- 2 An overview of Arctic Council activities and reports may be cil has presented reports, for example on climate found on its website, www.arctic-council.org 84 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

Figure 7.6 Arctic Council Ministerial Meeting in Nuuk, Greenland, 12 May 2011. Photo: Marte Kopstad / Ministry of Foreign Affairs

The second decade of Arctic cooperation was along northern sea routes and oil and gas activi- dominated by the issue of climate change. Com- ties resulting from greater access to oil and gas prehensive studies carried out under the auspices resources. The harsh climate and vulnerable envi- of the Arctic Council determined that the changes ronment mean that strict health, environment and being observed in the Arctic are the first signs of safety measures will be essential. This topic will changes that will affect the rest of the world. It is remain high on the Arctic Council’s agenda. therefore essential to reduce greenhouse gas Norway plays an active role in efforts to emissions so that we can achieve the goal of limi- strengthen the Arctic Council. This work focuses ting the rise in global temperature to 2°C. It is on three main areas: estimated that up to 40 % of the warming in the Arctic may come from short-lived drivers of cli- New permanent observers mate change. Whereas CO2 has an atmospheric lifetime of several hundred years, combustion- For many years the Arctic Council remained rela- generated black carbon (soot) and gases such as tively anonymous, shielded from outside atten- methane and ground-level ozone persist for much tion. This has changed dramatically over the past shorter periods, from ten years to just a few days. two-three years. Several non-Arctic actors have Measures to limit emissions of short-lived green- developed their own ambitions in the Arctic and house gases will therefore give rapid results. are seeking to influence developments in the Smaller emissions far north have a greater impact region. China, Italy, South Korea, the European on the climate in the Arctic than high emissions Commission and Japan have all applied for perma- further south. Norway will therefore seek coope- nent observer status in the Arctic Council. The ration on measures to reduce emissions caused by issue of observer status has long been the subject fuelwood use and the flaring of gas during oil pro- of discussions in the Arctic Council. Norway sup- duction. The Arctic Council is also giving high pri- ports the admission of new permanent observers ority to measures to limit emissions of short-lived that have legitimate interests related to the work drivers of climate change. of the Arctic Council and that meet the estab- The third decade of Arctic cooperation will in lished criteria. The participation of a wider range all likelihood focus on climate change adaptation, of actors will enhance the quality of discussions not least managing the increase in activity in the under the Arctic Council. New criteria for the area that will be made possible by the reduction in admission of permanent observers were estab- the extent of the sea ice, for example shipping lished at the Ministerial Meeting in Nuuk in May 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 85 The High North

2011. These criteria include requirements that The Arctic Search and Rescue Agreement observers must: (Agreement on Cooperation on Aeronautical and – recognise the sovereign rights of Arctic states; Maritime Search and Rescue in the Arctic), which – recognise that the Law of the Sea and the UN was signed at the May 2011 Ministerial Meeting in Convention on the Law of the Sea constitute Nuuk is the first legally binding agreement to be the legal basis and the legal framework within negotiated under the auspices of the Arctic Coun- which the Arctic must be understood; cil. – respect indigenous peoples, local cultures and The agreement establishes legally binding traditions; search and rescue cooperation, including better – be able to contribute to the work of the Arctic regional organisation of search and rescue ser- Council. vices in the Arctic. Strengthened search and res- cue cooperation is crucial in ensuring the optimal use of resources so that rescue operations can be Permanent secretariat conducted as swiftly as possible. The agreement Norway took the first step towards the creation of also sets out a more appropriate delimitation of a permanent Arctic Council secretariat with the the search and rescue regions of each of the par- establishment of a temporary secretariat in ties in the Arctic, and establishes national contact Tromsø during the Norwegian-Danish-Swedish points and cooperation mechanisms. chairmanship period 2006–13. At the Ministerial Meeting in Nuuk, it was decided to establish a per- manent secretariat in Tromsø. Norway is working to ensure that the permanent secretariat is in place Box 7.6 The Arctic Council during the Swedish chairmanship period, by the – Established in Ottawa in 1996. end of 2013. The secretariat will be responsible for – Member States: Canada, Denmark, Fin- providing support to the chairmanship, organising land, Iceland, Norway, Russia, Sweden and holding meetings of the Arctic Council, ensur- and the US. ing necessary translation (English-Russian), and – Permanent Participants (indigenous carrying out information activities. The secretariat peoples’ organisations): Aleut Internati- will have an initial staff of ten. This means that the onal Association (AIA), Arctic Athabas- Arctic Council will have a permanent secretariat kan Council (AAC), Gwich’in Council on a par with other international bodies of the International (GCI), Inuit Circumpolar same size and importance. The secretariat will Council (ICC), Russian Association of strengthen the work of the Arctic Council and con- Indigenous Peoples of the North, Siberia solidate Tromsø’s position as a centre for Arctic and Far East (RAIPON) and the Saami issues, both in Norway and internationally. Council. – Permanent Observers: France, Ger- many, the Netherlands, Poland, Spain, Dealing with specific issues the UK, as well as a number of non- The Arctic Council works on the basis of consen- governmental and intergovernmental sus. It is particularly well placed to identify con- organisations including the Nordic crete challenges posed by climate change and Council of Ministers. opportunities opening up for increased human – Applicants for permanent observer sta- activity in the Arctic. The Government will work tus: China, Italy, Japan, South Korea and actively to ensure that the Arctic Council is able to the European Commission. meet any such challenges so that the new oppor- – Political meetings: ministerial meeting tunities can be exploited in a sustainable manner. held every other year, deputy ministers’ In some cases this will mean that Council mem- meetings held every other year. bers become involved in processes in other – Rotating two-year chairmanship – Nor- forums, such as the International Maritime way’s most recent chairmanship 2006– Organization (IMO), which is developing a man- 09. Denmark 2009–11. Sweden since datory international code of safety for ships oper- 2011, to be succeeded by Canada and ating in polar waters (the Polar Code). In others it then the US. will be more appropriate for members of the Arc- – The Arctic Council Secretariat is based tic Council to negotiate binding agreements in Tromsø. between themselves. 86 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

Box 7.7 Arctic Council Working Groups – In the periods between the ministerial meetings the work of the Arctic Council is led by senior officials and activities are organised under six working groups: – Arctic Contaminants Action Program (ACAP); Figure 7.7 Logo of the Barents Euro-Arctic Region. – Arctic Monitoring and Assessment Pro- gramme (AMAP); – Conservation of Arctic Flora and Fauna and now encompasses a broad range of fields (CAFF); spanning from general security issues to the envi- – Emergency Prevention, Preparedness, ronment, health and social issues, search and res- and Response (EPPR); cue cooperation, business development, indi- – Protection of the Arctic Marine Environ- genous peoples and above all culture, education, ment (PAME); and people-to-people contacts. – Sustainable Development Working What makes the Barents cooperation stand Group (SDWG). out is the combination of intergovernmental and interregional cooperation. The forum for intergov- ernmental cooperation is the Barents Euro-Arctic Council. Its chairmanship rotates every second The Arctic Search and Rescue Agreement is a year, between Norway, Finland, Russia and Swe- clear illustration of how the Arctic Council has den. The primary objective is to support intergov- developed since the beginning of the Norwegian ernmental cooperation and development in the chairmanship period in 2007. During this period Barents region so as to ensure good neighbourly the Arctic Council has changed from a forum relations between the countries in the region, as purely for debate and discussion into a forum that well as economic and social development and sta- also initiates negotiations on legally binding bility. Interregional cooperation is organised agreements between its member states. This has under the Barents Regional Council, which cur- helped to strengthen and consolidate the Arctic rently brings together 13 regional entities under a Council’s position as the most important forum rotating chairmanship. Troms county (Norway) for developing policy to deal with new challenges held the chairmanship during the period 2009–11 in the Arctic. and has now passed the chairmanship to Norrbot- Following the model used in developing the ten county (Sweden). The Barents Regional Coun- search and rescue agreement, the May 2011 cil shares the same goal as the Barents Euro-Arc- Ministerial Meeting also established a task force tic Council, but focuses on local structures, local to develop an international instrument on Arctic knowledge and local priorities. Both the Barents marine oil pollution preparedness and response. Euro-Arctic Council and the Barents Regional The task force is co-chaired by the US, Russia and Council work on the basis of consensus. Norway. In addition, the Arctic Council will consi- Much of the work of the Barents cooperation der steps that can be taken to prevent oil spills at is carried out under the 16 working groups that sea. Reports on both these issues are due to be cover all the key cooperation areas. These com- presented at the 2013 Ministerial Meeting. prise national level working groups under the Bar- ents Euro-Arctic Council, regional working groups under the Barents Regional Council and 7.3 The Barents Cooperation joint Barents Euro-Arctic Council–Barents Regional Council working groups. Energy effi- Kirkenes was the natural place to choose for the ciency, alternative energy and tourism are new conference of foreign ministers and regional lea- focus areas. Climate change issues are an integral ders at which the Barents Euro-Arctic Region was part of the work carried out under the Barents established and the new multilateral, regional cooperation. Barents cooperation was launched in 1993. The The Barents region is characterised by long Barents cooperation has developed considerably distances between economic centres and limited 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 87 The High North

Figure 7.8 Kirkenes, 11 January 1993. The signing of the Kirkenes Declaration. From the left: Jørgen Orstrøm (Denmark), Andrei Kozyrev (Russia), Paavo Väyrinen (Finland), Thorvald Stoltenberg (Norway), Margaretha af Ugglas (Sweden) and Jon Sigursson (Iceland). Photo: Heikki Sarviaho / LEHTIKUVA / SCANPIX search and rescue personnel and equipment. In develop search and rescue cooperation in the 2008, Norway, Sweden, Finland and Russia region. signed an agreement on cooperation in the field The indigenous dimension is a key compo- of emergency prevention, preparedness and nent of the Barents cooperation. Representatives response, with a view to strengthening emer- of the three indigenous peoples in the region – gency preparedness and response capabilities in the Sami, the Nenets and the Vepsian peoples – the region. Under the agreement a Joint Commit- play an active part in the cooperation. This coop- tee on Rescue Cooperation was established. One eration focuses on raising awareness of the situa- of the aims of the agreement is for the countries tion of indigenous peoples in the region, encour- involved to be able to provide mutual assistance aging economic activity based on traditional across national borders in the event of emergen- knowledge and promoting indigenous language cies or accidents. The region’s cold climate and culture. makes it crucial that assistance can be provided Kirkenes has consolidated its position as a key rapidly when such situations arise. There may be centre of the Barents cooperation and occupies a situations where the rescue services in a neigh- central place in the development of cross-border bouring country are closest, and where assis- cooperation between Russia and Norway. The tance can be provided more rapidly by one of the Norwegian Barents Secretariat, the International other parties to the agreement. Joint search and Barents Secretariat, the Barents Institute and the rescue exercises are an important tool for ensur- annual cultural festival Barents Spektakel are all ing that the countries involved are able to pro- based in Kirkenes, which has made it easier to vide assistance to each other and for the further build a network of contacts and trust between peo- development of emergency preparedness and ple. search and rescue cooperation in the region. An The 2011 budget of the Norwegian Barents international exercise, Barents Rescue, is there- Secretariat was NOK 51 million. The Ministry of fore organised every other year under the aus- Foreign Affairs is the largest contributor of fund- pices of the Barents Euro-Arctic Council. The ing for projects carried out under the auspices of Joint Committee on Rescue Cooperation uses les- the Norwegian Barents Secretariat, with a contri- sons learned from Barents Rescue to further bution of approximately NOK 36 million in 2011. 88 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

Most of the remaining funding comes from the Ministry of Local Government and Regional Development, the Ministry of Children, Equality Box 7.8 Norwegian-Russian and Social Inclusion, the Ministry of Health and cultural cooperation – Care Services and the three counties in North BarentsKult Norway. Approximately NOK 40 million in fund- Cross-border cultural cooperation is an ing is allocated each year to a wide range of Nor- important component of Norway’s High wegian-Russian cooperation projects involving a North policy. Established cultural institu- large number of Norwegian, Russian and interna- tions, festivals and amateurs all contribute tional actors. The key focus areas are people-to- to the region’s diverse cultural scene, and people cooperation, sport, indigenous peoples, network-building between indigenous culture, business development, including offshore groups is a key element. The Ministry of development and infrastructure, the environment, Foreign Affairs and the Ministry of Culture health, skills development and education. The cooperate with the northern counties Secretariat’s main task is to provide funding for within the framework of the BarentsKult joint Norwegian-Russian projects, and support to fund, which provides support for several the Norwegian authorities as well as to regional dozen projects every year. Both ministries actors and structures. The Secretariat has a broad are involved in efforts to develop Norwe- network of contacts and is an important centre of gian-Russian cultural cooperation. The 1994 knowledge in the region. agreement on cultural cooperation and the A number of projects have been carried out declaration of intent signed by the ministers and effective cooperation mechanisms have been of culture of both countries in 2009 provide established, which are being developed on an the formal basis for these efforts. A cultural ongoing basis. The cooperation has been most forum has been established involving the successful when, as well as involving the central participation of the Russian Ministry of Cul- authorities, it has consistently focused on realistic ture and the regional authorities. Norwe- and practical objectives, with local and regional gian-Russian cultural festivals are held actors playing an active role. In Norway the three annually in one of the countries. The Nor- counties in North Norway and the Norwegian wegian Ministry of Foreign Affairs’ cultural Barents Secretariat have made an invaluable con- activities are organised through direct con- tribution in this respect. tact with actors in the three northernmost In the Government’s view, projects whose pri- counties of Norway and through Norway’s mary objective is the development of contacts and diplomatic and consular missions, primarily trust across national borders can now be given those in Murmansk, St Petersburg and lower priority in favour of projects that have more Moscow. The aim is to develop and direct significance for the improvement of living strengthen networks between institutions conditions for the inhabitants of the region. Prio- and private actors and to promote people-to- rity will be given to projects designed to enhance people cooperation in the fields of culture economic ties and growth with a view to strengt- and the media. The Norwegian-Russian hening the basis for employment and settlement. action plan for cultural cooperation in the The International Barents Secretariat was High North, which was presented in Sep- established in 2008 to enhance continuity and effi- tember 2009, highlights the Ministry of ciency in the Barents cooperation. It has devel- Culture’s commitment and aims. Efforts in oped a high level of expertise and carries out this area take the form of contributions to important tasks such as organising meetings and cultural activities and cultural cooperation conferences, gathering knowledge, and providing in the three northernmost counties, as well advice and information. It also participates as work to strengthen Norwegian-Russian actively in international forums and in joint activi- cultural cooperation and cultural coopera- ties with other regional and international organi- tion in other international forums relevant sations and has thus helped to build support for to the High North. the work of the Barents Euro-Arctic Council in the member countries. While it is essential to continue this broad- based cooperation with its focus on people-to-peo- 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 89 The High North

Figure 7.9 Part of the installation “Borderlines” by Morten Traavik, displayed during the Barents Spekta- kel festival in Kirkenes in 2011. Photo: Marius Hauge ple contacts across a wide range of sectors, it is During its chairmanship of the Barents Euro- important to think strategically about the signifi- Arctic Council (2009–11), Sweden focused on the cance of the Barents region and the potential for development of an eco-efficient economy in the further development through regional coopera- Barents region. Priority was given to climate tion. The Barents region is seen as increasingly issues, energy efficiency and renewable energy. attractive to foreign investors as a result of its rich Norway and Russia have worked on improving mineral resources and the growing global energy use and efficiency at the local level in Mur- demand for minerals. As well as being a potential mansk, Arkhangelsk and Karelia. Future efforts supplier of raw materials it also possesses consid- are likely to include projects focusing on the erable industrial and technical expertise. The exploitation of biomass. development of expertise and of necessary infra- Efforts to eliminate environmental “hot spots” structure and logistics will be key focus areas in are a key task. These “hot spots” are particularly the future. Such developments could have signifi- heavily polluted areas that are complicated and cant spin-off effects for the population in the time-consuming to deal with. The Arctic Monitor- region. The same also applies to the increase in ing and Assessment Programme (AMAP) and the maritime transport. The Government considers it Nordic Environment Finance Corporation have important that the Barents cooperation reflects worked together with Russian experts to draw up these issues and that development in the region a list of over 42 environmental “hot spots”. The takes place in an environmentally sound way. Fur- aim is to launch investment projects in all of these ther work is required to raise the profile of the areas by 2013. However, much remains to be Barents region and the Barents cooperation at the done, for example with regard to nuclear waste, international level. The strong regional element of emissions from heavy industry on the Kola Penin- the cooperation must be further developed and sula and ensuring clean municipal water supplies strengthened. in various parts of the Russian Barents region. A 90 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North set of criteria specifying what needs to be done to 1993 and identifies the main elements of the coop- eliminate these environmental problems has now eration in the years to come. been established, and these efforts are to be Norway’s main aim as chair of the Barents intensified. The Nordic Environment Finance Cor- Euro-Arctic Council is to promote the Barents poration and the Arctic Council will be important region as a region for innovation and environmen- partners in further international efforts in this tally sound management of resources. In order to area. achieve this aim the Norwegian chairmanship will concentrate on the following main priorities: 1. Sustainable economic and industrial develop- Norway’s chairmanship of the Barents Euro-Arctic ment in a resource-rich region. Council 2011–2013 2. Knowledge-based environmentally sound and Norway took over from Sweden as chair of the climate-friendly development. Barents Euro-Arctic Council in October 2011. The 3. The human dimension. Barents cooperation will celebrate its 20th anni- versary in 2013, during Norway’s chairmanship. One of the primary objectives is to further consoli- The Government is planning a major celebration date and develop the already existing broad-based both to mark the end of the first 20 years of this people-to-people cooperation and to continue unique cooperation and also as an opportunity to efforts to reduce obstacles to cooperation and adapt and prepare for a new phase of the coopera- development. Closer integration of the Barents tion. Under Norway’s chairmanship, a new region into European and international coopera- Kirkenes declaration is to be developed that tion efforts, as well as into global processes that reflects the changes that have taken place since are currently being developed, will be crucial for

Box 7.9 The Barents Cooperation The Kirkenes Declaration on Cooperation in the coincide with the rotation of the chairmanship, Barents Euro-Arctic Region was signed on 11 approval of overall strategies, amendments and January 1993. proposals. The Committee of Senior Officials is responsible for the work of the Council between Members at government level: the ministerial meetings and meets at least three times a year. Denmark, Finland, Iceland, Norway, Russia, The Barents Regional Council: approves the Sweden and the European Commission most important decisions at regional level and meets twice a year. Between these meetings, Observer states: practical work is carried out by the Barents Canada, France, Germany, Italy, Japan, the Net- Regional Committee, which meets several times herlands, Poland, the UK and the US a year.

Members at regional level: Barents Euro-Arctic Council working groups: Finland: Kainuu, Lapland, Oulu Working Group on Economic Cooperation: seeks Norway: Finnmark, Nordland, Troms to promote economic development in the Russia: Arkhangelsk, Karelia, Komi, Murmansk, Barents region through cooperation between Nenets the countries involved. Sweden: Norrbotten, Västerbotten Barents Forest Sector Task Force: seeks to Observers: North Karelia (Finland) create the necessary conditions for the develop- Indigenous peoples: the Sami, the Nenets, the ment of forestry, sound environmental practices Vepsians and wood-based industries through cooperation as well as the implementation of concrete mea- Governing bodies: sures and projects in the forestry sector in the The Barents Euro-Arctic Council: meetings at region. foreign minister level held every other year to 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 91 The High North

Box 7.9 (Continue) Working Group on Environment: focuses on tion, transmission and use of energy in the cooperation on nature conservation, water Barents region. issues, cleaner production and sustainable con- Joint Working Group on Tourism: seeks to sumption as well as climate issues and efforts to develop the tourism sector and promote ecologi- eliminate environmental “hot spots”. cally, socially and culturally sustainable tourism. Working Group on Customs Cooperation: Joint Working Group on Education and focuses on the removal of trade barriers Research: facilitates exchanges in the field of between Russia and other countries of the higher education and research. region. Working Group on Youth Policy: seeks to enhance cooperation on youth policy in the Regional working groups: Barents region. Regional Working Group on Environment: serves Barents Euro-Arctic Pan-European Tran- as a consultative body on environmental issues sport Area: seeks to strengthen cooperation in to the Working Group on Environment. order to create an efficient transport system in Regional Working Group on Youth Issues: the Barents region that integrates different works actively to make the Barents region more modes of transport. attractive to young people. Joint Committee on Rescue Cooperation: Regional Working Group on Investments and seeks to enhance the potential for the search Economic Cooperation: facilitates dialogue and rescue services to cooperate on emergency between the authorities and the business sector, preparedness and search and rescue across assesses business infrastructure for small and county and national/federal borders in the medium-sized enterprises in the region and Barents region. suggests improvements. Regional Working Group on Transport and Logistics: implements concrete measures and Joint Barents Euro-Arctic Council - Barents Regional projects for the establishment of a regional Council working groups: transport network. Joint Working Group on Culture: seeks to Working Group of Indigenous Peoples: works strengthen cultural identity in the Barents to safeguard indigenous peoples’ rights, region and increase knowledge of arts and cul- foundation for trade, society, culture and ture both within and outside the region. language. It has an advisory role at both national Joint Working Group on Health and Related and regional level and participates at meetings Social Issues: seeks to improve public health and of both the Committee of Senior Officials and social services for the inhabitants of the Barents the Barents Regional Committee. region. Joint Working Group on Energy: seeks to promote the sustainable exploitation, produc-

promoting sustainable growth and industrial gress in the High North. Cooperation on group development. A coordinated and concerted effort exchanges and other activities and projects for is needed to develop transport and logistics in the children and young people play an important role region, which is essential for future development. in strengthening understanding between people High priority must be given to innovation, moder- in the region. This is something that is particu- nisation and new ideas. Cross-border cooperation larly important in our cooperation with Russia. is being strengthened continuously by the intro- Norway will continue to provide funding for multi- duction of increasingly flexible and seamless lateral child and youth policy cooperation in the schemes that enable people to visit or work in Barents region. Projects targeting vulnerable chil- other countries in the region. dren and young people are crucial for creating In the long term, initiatives focusing on chil- social cohesion and ensuring development and a dren and young people will be essential to pro- sense of security and safety in the region. The 92 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North existing cooperation agreements with the regions The Northern Dimension has undergone of northwestern Russia within the framework of rapid and dynamic development, encompassing the Barents Euro-Arctic Council programme Chil- more and more new areas of cooperation. The dren and Youth at Risk in the Barents Region cooperation is organised through four partner- (CYAR) will play an important role in this context. ships. The partnerships are established as inde- It is important that high priority is given to the pendent entities that are responsible for deve- gender quality perspective in the people-to-people loping concrete cooperation in their areas of cooperation in the High North. From a Norwe- responsibility. They report to the Northern gian point of view it is essential to promote clear, Dimension Steering Group, ministerial meetings positive attitudes towards gender equality in soci- and deputy ministers’ meetings (every other ety as a whole. year). Established in 2001, the Northern Dimension Environmental Partnership remains the flagship 7.4 The Northern Dimension of the Northern Dimension. A number of large- scale projects have been implemented under this The Government’s main objective in being a part- partnership. The most significant of these was the ner in the Northern Dimension policy is to con- water treatment project in St Petersburg, imple- tribute to and promote constructive and practical mented in the period 2002–07, which has ensured cooperation with the EU and Russia in our neigh- that the city’s population is provided with clean bouring areas. One of the priorities in the time drinking water. The Partnership has also adminis- ahead will be the recently established Northern tered a fund worth EUR 280 million for nuclear Dimension Partnership on Transport and Logis- safety and environmental projects. With co-financ- tics. ing, grants and loans from international financial The EU Northern Dimension was established institutions, projects worth over EUR 3 billion in 1997 as an instrument for promoting the EU’s have been supported. Norway has contributed regional cooperation in northern Europe, with EUR 10 million to cooperation on nuclear safety particular emphasis on cooperation with Russia. and NOK 17 million to general environmental In 2006 it became simply the Northern Dimen- cooperation. More attention is gradually being sion, and a renewed policy was launched, a com- directed towards finding solutions to environmen- mon policy shared by four equal partners: the EU, tal problems in northwestern Russia, and projects Iceland, Norway and Russia. The regional coun- in the field of energy efficiency and renewable cils in the north also participate, as do a number energy are a new priority area. In connection with of international financial institutions. EU member this Norway will consider increasing its financial states with interests in the region also participate contribution to the Partnership. Any increase will actively at both political and expert level. be within the budgetary framework for Ministry The broad umbrella framework of the North- of Foreign Affairs grant funds. ern Dimension allows us to promote projects that The Northern Dimension Partnership in are of relevance and benefit to Norway and the Public Health and Social Well-being is an impor- region as a whole. It enhances our ability to partic- tant arena for Norway for cooperation on health ipate actively in cooperation with Russia in the issues in the region. The cooperation takes place four EU-Russia Common Spaces, as well as in at ministry level, through participation in expert cooperation on modernisation, through parallel groups and joint projects. The focus has been on bilateral processes. primary health care services, communicable dise- The Government is seeking to promote cross- ases, tuberculosis, HIV/AIDS and lifestyle-related border mobility. More attention will be devoted to diseases. These are areas to which Norway gives the question of how contacts with the northern priority. Norway currently leads the work of the parts of Sweden and Finland can also be Expert Group on Alcohol and Substance Abuse. improved. The aim is to promote the exchange of Two new partnerships were formally approved labour and encourage more companies to choose at the ministerial meeting of the Northern Dimen- to work in regional markets in several countries. sion in Oslo on 2 November 2010, in the areas of The Government intends to support good initia- transport and logistics and culture respectively. tives from knowledge institutions and regional The secretariat of the Partnership on Trans- authorities that are aimed at promoting coopera- port and Logistics has been established at the tion and integration in the field of research and Nordic Investment Bank in Helsinki. One of its education across national borders. primary objectives is to accelerate the removal of 2011–2012 Meld. 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Box 7.10 The Northern Dimension The Northern Dimension Political Declaration Council of Baltic Sea States Secretariat in and the Northern Dimension Policy Framework Stockholm. Document, the founding documents of the Chair: Finland (as of November 2011) Northern Dimension, were adopted at the Hel- – Northern Dimension Partnership on Trans- sinki Summit on 26 November 2006. port and Logistics: Promotes cooperation in Northern Dimension partners: the EU, Ice- the Northern Dimension area through the land, Norway and Russia. implementation of projects related to infra- Participants: the regional councils (Arctic structure, services and logistics. Secretariat: Council, Barents Euro-Arctic Council, Council of Established at the Nordic Investment Bank in the Baltic Sea States, Nordic Council of Minis- Helsinki. ters), international financial institutions (Euro- Chair: Norway pean Bank for Reconstruction and Develop- – Northern Dimension Partnership on Culture: ment, European Investment Bank, International Promotes cooperation between the cultural Bank for Reconstruction and Development, and business sectors, particularly on tourism Nordic Environment Finance Corporation, and cultural tourism, and seeks to raise Nordic Investment Bank), other European awareness of regional and local cultural iden- Union institutions and bodies and those of the tity and heritage. Secretariat: Nordic Council other Northern Dimension partners. of Ministers in Copenhagen (until 2013). Observers: Canada, the US, Belarus Chair: Norway

Partnerships: Institutions: – Northern Dimension Environmental Part- – Northern Dimension Institute: an open nership: is taking action to tackle environ- network community of universities and mental problems in the Northern Dimension research institutes whose primary aim is to area. Deals with nuclear safety and radioac- promote research in fields related to the prio- tive waste management, upgrading run-down rity cooperation areas of the Northern infrastructure and outdated water supply sys- Dimension. Based at St Petersburg State tems, waste water treatment, management of University and Lappeenranta University of municipal and agricultural waste, and district Technology. heating. – Northern Dimension Business Council: a plat- Secretariat: The European Bank for form for dialogue between private sector Reconstruction and Development (London) actors. Seeks to promote contacts between administers the NDEP Support Fund. companies and local and regional authorities. – Northern Dimension Partnership in Public Nine working groups have been established Health and Social Well-being: Works to in the areas of oil and gas, electric power and improve the health and overall quality of life energy supply, advanced technology, ecology of the inhabitants of the region through i) the and environmental protection, transport and prevention of communicable and non-com- logistics, medicines and pharmaceuticals, municable diseases, and ii) promotion of a machinery and auto components, banking healthy lifestyle. Secretariat: Hosted by the and forestry.

non-infrastructure related bottlenecks affecting 2011, Norway will work actively to promote mari- cross-border transport and logistics. From Nor- time transport corridors, such as the Northeast way’s point of view, it is also important that the Passage and other east-west connections. The partnership also investigates and assesses the plan is to establish a support fund for cooperation potential opportunities offered by more visionary projects to which the four Northern Dimension projects, including the Northern East–West partners can contribute. The fund will be based on Freight Corridor. During its chairmanship in voluntary contributions from all countries 94 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North involved in the Northern Dimension and will be ters has had a separate Arctic Cooperation Pro- administered by the European Bank for Recon- gramme. Regional Nordic cooperation arenas struction and Development. The allocation of have existed somewhat longer. The North Calotte funding to projects will be approved by steering Council was established by the Nordic Council of groups established for this purpose. Norway’s Ministers as early as 1967 and consists of 12 first contribution to the fund will be covered by regional representatives from Lappland, Norrbot- the Ministry of Foreign Affairs’ Barents 2020 pro- ten and Norway’s three northernmost counties. gramme. International financial institutions may Its work focuses particularly on business policy, come to play an important role in the development the environment and culture. The basic funding of the partnership, as they have done with the for the Council comes from the Nordic Council of Environmental Partnership. Ministers, but it is co-financed to a high degree by the EU’s cross-border projects (under the INTER- REG programme). Another council, Tornedalsrå- 7.5 Nordic cooperation det, is a cooperation forum for Swedish, Norwe- gian and Finnish municipalities along the Torne The Nordic countries have differing geographical, river. Norway is represented by the municipalities commercial and legal interests in the High North. of Kåfjord, Kautokeino, Storfjord and Nordreisa. Norway and Denmark/Greenland are coastal Another arena is the Nordic Atlantic Cooperation states bordering on the Arctic Ocean and as a (NORA), which involves Iceland, the Faroe result have special rights and obligations under Islands, Greenland and the coastal counties of the Law of the Sea. Iceland does not have an Arc- Norway (the Regional Council for Western Nor- tic Ocean coastline, but has economic and political way, the Executive Committee for Northern Nor- interests related to developments in the Arctic, way and Trøndelag). particularly as regards the fishing and maritime The Nordic Council of Ministers’ Arctic Coop- industries. Sweden and Finland have major com- eration Programme is carried out in collaboration mercial interests in their northern areas, particu- with the Arctic Council. The programme encom- larly in the mineral industry and in the field of passes areas such as the environment, health, transport. Issues related to the High North are energy supplies, research, culture and education, the subject of regular discussions between the ICT and trade and industry. As well as cooperating Nordic countries, both on a one-to-one basis and with the Arctic Council, the Nordic Council of in joint Nordic forums. Ministers uses the Arctic Cooperation Pro- Three of the Nordic countries have Sami popu- gramme to fund projects carried out in coopera- lations, as does Russia. The Sami parliaments in tion with the EU, the Northern Dimension and Norway, Finland and Sweden have established a the Barents Euro-Arctic Council. Sami Parliamentary Council at which representa- Norway will hold the Presidency of the Nordic tives of Sami organisations in Russia participate as Council of Ministers in 2012. The main theme of observers. In 2005 a group of experts submitted the programme for the Norwegian presidency is its proposal for a Nordic Sami Convention and in the welfare state in a Nordic perspective. The 2011 formal negotiations on the convention presidency will also focus on the common chal- began. The aim is to complete the negotiations lenges faced by the Nordic countries and will over the next five years. identify areas for closer cooperation. In addition, The ministers with responsibility for Sami cross-sectoral issues will continue to be affairs in Finland, Norway and Sweden and the addressed, for example the elimination of border presidents of the Sami parliaments in the respec- barriers and issues relating to young people and tive countries hold annual meetings for the pur- languages. Sweden will hold the presidency in poses of sharing information, and discussing and 2013. Joint projects in the High North are planned dealing with Sami issues of mutual interest. This under both the Norwegian and the Swedish presi- cooperation is aimed at strengthening and devel- dencies, for example in connection with the oping the Sami people’s language, culture, econ- extraction of minerals. omy and way of life. The cooperation was estab- Issues related to the High North will be given lished in 2000 and is informally but closely affili- priority during Norway’s presidency in 2012. ated to the Nordic Council of Ministers. These will be considered in the context of the A substantial proportion of the Nordic land Stoltenberg report on Nordic cooperation on for- and sea areas lie in the Arctic region. Since the eign and security policy. turn of the century, the Nordic Council of Minis- Part III Growing activity in the High North. Opportunities and challenges

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8 Environmental protection and environmental problems

Figure 8.1 From the Varanger Peninsula. Photo: Marianne Gjørv

The Government intends Norway to be the best Activities that influence greenhouse gas emis- steward of the environment and the natural sions, pollution levels, resource use and spatial resources in the High North. We will protect the management must be in accordance with national environment in the High North and facilitate value targets and international commitments related to creation and human activity while ensuring that the climate and environment. Conservation of bio- ecosystems, ecological goods and services and diversity must be a basic condition for all activi- biodiversity are maintained. The provisions of ties, in accordance with the goals and principles of Chapter II of the Nature Diversity Act must be the Nature Diversity Act, the Svalbard Environ- used as a basis when exercising public authority mental Protection Act, the Marine Resources Act in a way that will have environmental impacts, so and the integrated management plans for Norwe- that Norway uses its resources sustainably and gian sea areas. One of the overriding objectives of biological, geological and landscape diversity are Norway’s Svalbard policy is to preserve the archi- protected through conservation and sustainable pelago’s distinctive natural wilderness. The most use, as required by section 1 of the Nature Diver- recent white paper on Svalbard (Report No. 22 sity Act. (2008–2009) to the Storting) discusses the spe- 98 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North cific goals and requirements that apply to manage- and agriculture, and for the traditional way of life ment of the environment in Svalbard. of indigenous peoples. For many people, close contact with the natural environment is crucial for their quality of life and for their sense of identity 8.1 The natural environment as an and of belonging to the region. essential basis for welfare and value creation 8.2 Pressures and impacts on the Long-term, integrated management of the envi- environment in the High North ronment and natural resources is crucial for securing the livelihoods of present and future gen- Both local activities and external pressures have erations. The diversity of species and habitats is impacts on the environment in the High North. essential for maintaining ecological processes and The most important external pressures are cli- systems, which in turn form the basis for human mate change, ocean acidification and long-range settlement, value creation and welfare. In the transboundary pollution. Local pressures include High North, these links are particularly clear various types of land use and use of sea areas and because much commercial activity is directly exploitation of resources. Fisheries, aquaculture, dependent on the natural environment and living reindeer husbandry and the development of resources. The cultural heritage also provides evi- energy and transport infrastructure are important dence of these links, especially cultural sites and factors. There are also a number of actual and remains and the traditions of indigenous peoples. potential sources of pollution at the local level, Norway’s land and sea areas are very valuable including shipping, oil and gas activities, indus- in environmental terms, and the Barents Sea is trial activities and nuclear facilities in Norway’s one of the most productive sea areas in the world, neighbouring areas. with over 200 fish species, thousands of benthic Increased human activity combined with cli- species, and large numbers of seabirds and mate change is creating new environmental prob- marine mammals, including some of the largest lems. Growing shortages of oil and minerals are seabird colonies in the world. High biological pro- resulting in rising prices, and the High North is duction also provides a basis for some of the larg- becoming more accessible as the extent of the sea est fisheries in the world; the Northeast Arctic ice shrinks. These changes are fuelling interest in cod stock alone now supports an annual total the region’s natural resources and in the new sea allowable catch of over 700 000 tonnes. routes that are emerging. The Government will The populations of polar bears and walruses in set high environmental standards for new activi- the northern part of the Barents Sea and Svalbard ties and will protect particularly valuable and vul- are among the healthiest in the world. Genetic nerable areas against pressure that may have neg- diversity is high in the northern sea areas, and ative impacts. through marine bioprospecting, this can be used Many of the populations of fish, mammals and to acquire important knowledge and economically birds in the High North exhibit large natural fluc- valuable services. North Norway has magnificent tuations. At the same time, the physical environ- scenery and a unique cultural heritage that ment is changing as a result of climate change. reflects the way its people have used the natural These changes are expected to become more resources in the sea and on land for thousands of marked in the years ahead, and may disrupt the years. Many of the country’s healthiest stocks of natural cycles of the Arctic environment. Species wild salmon can also be found in North Norway. that are adapted to the extreme conditions in the Most of the remaining area of undisturbed nature high-Arctic environment will face more competi- in continental Europe is in the Barents region. tion and may gradually be displaced by species Svalbard is a large, continuous expanse of wilder- from more southerly regions, changing the char- ness, and an example of successful, long-term acter of the ecosystems. Analyses of the popula- environmental management. tion trends for various species in recent decades The natural environment and cultural heritage appear to be consistent with such changes. of the region support activities of great economic The terrestrial environment in the High North and cultural importance, from fishing, hunting is generally less affected by local activity than and reindeer husbandry to tourism. The biodiver- areas further south. This is partly because the sity of the region also forms the basis for impor- cold climate results in low biological production in tant commercial activities, including aquaculture much of the region, and in consequence popula- 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 99 The High North tion density is low and there is little human activ- cumulative environmental effects on these stocks ity. However, there are wide variations from one must not be allowed to increase. These stocks part of the region to another. In North Norway contribute to value creation in the region, and alone, we can find everything from the biologi- they are an important part of the natural resource cally rich and relatively densely populated coastal base for Sami culture. The Tana river system is strip in Nordland to the uninhabited polar desert the most productive Atlantic salmon river in Nor- of eastern Svalbard. way and indeed in the world, and therefore In essence, the environmental problems in extremely important both nationally and interna- North Norway are the same as those in the rest of tionally. However, many of the wild salmon stocks the country. As in other parts of the world, the in this river system are at an all-time low, mainly most important causes of the decline in biodiver- due to overfishing. It has long been known that sity and the loss of elements of the cultural heri- part of the catch in the sea fishery for salmon in tage are physical alteration of the environment Finnmark county consists of fish from Russian riv- and changes in land use. Such developments also ers, and new studies show that at least 20 % of the result in the loss of areas without major infrastruc- salmon in this fishery originates from Russia. Nor- ture development. Although there is generally way will continue its dialogue and research coop- less pressure on land in North Norway than fur- eration with Russia on this issue. Fish farming has ther south, the same trends are apparent. How- so far had less impact on many important wild ever, overgrazing by domestic reindeer is a prob- salmon stocks in North Norway, particularly in lem that is specific to reindeer husbandry areas in Finnmark, than on stocks in other parts of the the High North. Around 12 % of the area of North country, where there is intensive fish farming. Norway is protected. Marine bioprospecting is another important The marine ecosystems in the most northerly activity that is expected to expand. It is regulated waters are under pressure from climate change, by the Marine Resources Act and the Nature ocean acidification and long-range transboundary Diversity Act, and will only be carried out within pollution. In more southerly parts of the region environmentally sound limits. and coastal areas, the greatest pressure is from There is growing global demand for mineral local activities. Many seabird populations have raw materials, and their prices are rising, and this declined dramatically, and considerable damage is creating opportunities for new activities and to benthic organisms has also been observed. value creation. However, the extraction of metals Coral reefs in several areas have been damaged or and minerals involves physical disturbance of the destroyed by bottom trawling. In the past 10 natural environment and requires sound manage- years, the fisheries management authorities have ment of waste and pollutants, and can result in focused increasingly on impacts on benthic com- environmental problems. The establishment of munities, and a number of measures have been new mining activities and new transport, energy introduced to improve the situation. This is and industrial infrastructure may affect important expected to reduce pressure from the fisheries. habitats and ecosystems and remaining areas Global warming is only one of several pres- without major infrastructure development. sures on ecosystems and living resources in the Local activity and land use have far less influ- High North. The cumulative environmental ence in Svalbard than in North Norway. With the effects depend on interactions between a number exception of the established settlements and min- of pressures and impacts. Climate change must ing areas, the archipelago is still a more or less therefore be considered together with other envi- undisturbed wilderness, and the natural diversity ronmental pressures and important drivers of of species and ecosystems remains largely intact. change. For example, the rising atmospheric con- The only activities are outdoor recreation, tourism centration of CO2 is also leading to ocean acidifi- and research. There is also less pressure on the cation. The Arctic sea areas are the most sensitive marine environment around Svalbard than in to this because seawater absorbs more CO2 when areas further south. However, the pace of climate the water temperature is low. Increasing ocean change is high in Svalbard, and it is expected to acidification will affect organisms with calcium have major environmental impacts, especially for shells, and in the long term it may have a serious species that are dependent on sea ice. There is impact on marine ecosystems and the opportuni- growing tourism, and more activity and traffic is ties to harvest from them. expected as the sea ice cover retreats. Protected The conservation of the wild salmon stocks in areas cover 65 % of the land area of Svalbard and North Norway is an important issue, and the 87 % of its territorial waters. The Svalbard Envi- 100 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North ronmental Protection Act sets out strict require- sures are considered together. It is also essential ments for all types of activity on the archipelago, if we are to avoid serious conflict between the including activity outside the protected areas. development of commercial activities based on This is a clear expression of the high priority Nor- the region’s natural resources, environmental pro- way gives to environmental protection in its Sval- tection considerations and activities based on sus- bard policy. tainable use of ecosystems. A long-term, inte- The state of the environment in the High grated management regime must be based on North and the Arctic depends to a large extent on sound national legislation and frameworks and on activities outside the region and pollution originat- cooperation and coordination across national bor- ing elsewhere. Climate change, ocean acidifica- ders. These are basic principles of Norwegian leg- tion and long-range transboundary pollution are islation – the Nature Diversity Act, the Svalbard examples. Many migratory species are under Environmental Protection Act, the Water Manage- pressure at times of year when they are not in ment Regulations and the Marine Resources Act – Svalbard. New substances that are persistent, bio- and of the integrated management plans for eco- accumulative and toxic may also cause problems. system-based management of Norwegian sea Climate change may exacerbate the loss of areas. Norway promotes these principles in its biodiversity. According to the Intergovernmental bilateral cooperation with Russia, as well as in the Panel on Climate Change (IPCC), around 30 % of Arctic Council. the world’s species will be at risk of extinction if An integrated management regime must be the global mean temperature increase exceeds based on the best available knowledge. The Gov- 2°C to 3°C relative to pre-industrial levels. The ernment therefore considers it important to take a Arctic has been identified as one of the regions knowledge-based approach, in which the environ- that will be most vulnerable to these processes. mental impacts are thoroughly assessed before The Government considers it important for Nor- decisions are made on new activities, and in which way to build up knowledge about how biodiversity there is transparency about the challenges and the living resources in the Arctic will respond involved and conflicting interests and consider- to physical changes in environmental conditions. ations. This allows better assessments of which Knowledge of this kind will be crucial for develop- requirements should apply to new activities and ing effective adaptation strategies for environmen- what limits should apply to human activity. tal protection and natural resource management Work on the integrated management plans for in the High North. the Norwegian sea areas and the integrated man- Climate change, ocean acidification and grow- agement plans for inland, transitional (brackish) ing activity will put more pressure on the environ- and coastal waters under the Water Management ment in the High North. Because of uncertainties Regulations provide good examples of processes and poor documentation of several factors, it is not that make it possible to clarify the overall frame- possible to draw definite conclusions on the cumu- work for activities and thus facilitate the coexis- lative effects on the ecosystem of all human activi- tence of different industries. This kind of inte- ties combined. However, a combination of several grated approach can also be instrumental in significant environmental pressures in the same ensuring that business interests, local, regional area at the same time increases the risk of nega- and central authorities, indigenous peoples, envi- tive impacts. This underlines the importance of ronmental organisations and other interest taking a precautionary approach to activities that groups all have a common understanding of the could increase the pressure on, or risk of damage goals for management of the environment. to, the environment in the High North. The Government attaches great importance to knowledge-building in the environmental field, both at national level, through initiatives such as 8.3 A long-term, integrated the Fram Centre in Tromsø, and at international environmental management level, through cooperation with fellow members of regime the Arctic Council and in other regional forums. The Government’s efforts to promote the genera- To ensure that biodiversity in the High North con- tion of knowledge and expertise on the High tinues to provide the basis for economic and social North are discussed in more detail in chapter 3.4. welfare, it must be safeguarded through a long- At national level, it is essential to ensure that all term, integrated management regime. This is the projects that may affect the natural environment only way to be sure that all activities and pres- are examined in accordance with the require- 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 101 The High North

8.4 Targeted regional and global Box 8.1 The Nature Diversity Act environmental cooperation Chapter II of the Nature Diversity Act contains Sustainable management of the natural environ- provisions on how the authorities are to ment and cultural heritage in the High North can ensure that they have the best possible basis only be achieved through a combination of tar- for making official decisions under other legis- geted national efforts and international coopera- lation that may affect biological, geological tion. Norway must cooperate first and foremost and landscape diversity. One of the fundamen- with the countries with which we share these tal requirements is that all decisions must be assets. based on scientific knowledge of how a project Norway’s High North policy is significant in may affect biological, geological or landscape this context because it includes a foreign policy diversity. When determining whether or not a dimension that is important for developments in project is to be permitted, or whether it is to the region, and regional cooperation in forums be made subject to conditions, the principles that play a key role in work on environmental and of environmental law set out in the Act must climate change issues (for example the Arctic be used as guidelines. This means that the Council, the Barents cooperation and Norway’s cumulative environmental effects on an eco- bilateral cooperation with Russia). Various cooper- system must be considered. The costs associ- ation forums are discussed further in chapter 7. ated with preventing or limiting any damage Norway’s ability to fulfil its international obliga- caused by a project must be covered by the tions under agreements in areas including climate project owner (the user-pays principle). Envi- change, pollution, conservation of biodiversity ronmentally sound techniques and methods of and protection of cultural heritage depends partly operation must be used, and activities must be on the success of cooperation in the High North. sited in a way that prevents or limits damage. Many populations of fish, birds and mammals in If too little is known about possible environ- the High North have a wide distribution range mental impacts, the precautionary principle and migrate across national borders. Close coop- must be applied. eration between the Arctic coastal states on man- The principles set out in the Nature Diver- agement of species and their habitats is vital for sity Act supplement the requirements of other achieving sustainable social and economic devel- legislation regulating the activities of various opment in the region. Norway has enjoyed con- sectors, such as the Marine Resources Act, structive and successful fisheries cooperation the Mineral Resources Act, the Petroleum Act with Russia since the 1950s. and the Offshore Energy Act, and decisions Although the international legal framework for made on the basis of more general legislation environmental cooperation in the High North and such as the Planning and Building Act and the Arctic is in place, not all the Arctic states have Pollution Control Act. When the relevant sec- signed or ratified key conventions. The Govern- toral authorities make decisions under such ment will work actively to promote closer and legislation, they will also make use of the prin- more binding environmental cooperation between ciples set out in the Nature Diversity Act dur- the Arctic countries, with a special emphasis on ing preparatory work and when exercising dis- the protection of vulnerable species and ecosys- cretionary powers. In other words, the Nature tems. Diversity Act, together with sectoral legisla- Broad-based international agreements that tion, determines the framework for activities regulate releases of pollutants and activities in dif- and for protection of biological, geological and ferent sectors are needed for management of the landscape diversity. Measures under this Act environment and to deal with environmental pres- are also to be weighed against other important sures that are mainly due to activities outside the public interests, as set out in section 14. region. Norway’s High North policy has an impor- tant role to play here through knowledge develop- ment and the provision of input to relevant forums, for example as part of Arctic Council ini- ments for preparatory work and environmental tiatives. The knowledge generated and compiled assessment set out in current legislation. must also be communicated to forums for regional and global agreements, so that environ- mental problems in the High North can be taken 102 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North more fully into account. Norway will continue its continue to have high priority, both within the efforts in this field in cooperation with the other Arctic Council and in Norway’s environmental Arctic countries. cooperation with Russia. The High North acts in many ways as a sink The Government will shape its High North for persistent organic pollutants, which are trans- policy and organise its cooperation with other ported with air and ocean currents from more countries in the region so that they support the southerly latitudes. National prohibitions against achievement of Norwegian environmental targets many persistent, bioaccumulative and toxic sub- that apply to North Norway, Svalbard and Norwe- stances have gradually been extended through gian sea areas, and efforts to develop binding regional and global agreements. Cooperation international agreements to mitigate climate under the Arctic Council makes an important con- change and limit long-range transboundary pollu- tribution to this work through monitoring, compi- tion and other external pressures on the environ- lation of data and assessments of the pollution sit- ment in the High North. The Government will use uation in the Arctic. the relevant cooperation forums to promote inte- Cooperation between the Arctic countries in grated, ecosystem-based management of the envi- this field continues to be very important. This ronment throughout the Arctic. The Government includes cooperation on monitoring of levels of will make use of targeted international coopera- pollutants, on assessments of whether action is tion on research, monitoring and environmental needed to deal with inputs of new pollutants to the assessments to strengthen knowledge about the Arctic environment, and on action to deal with environment and climate change in the High specific sources of pollutants within the Arctic North. It will also cooperate with other countries region. Monitoring also provides important infor- in the region to build up and make use of know- mation on changes in Arctic ecosystems, includ- ledge on the values related to ecosystem services, ing changes that affect economically valuable spe- and on ways of taking their value more fully into cies and environmental impacts on threatened account in decision-making processes for activi- species. In the Government’s view, this work must ties in the High North. 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 103 The High North

9 Knowledge-based integrated marine management

Figur 9.1 Marine management. Illustration: Institute of Marine Research

Norway is a maritime nation and a nation rich in sea areas. In the management plans human activi- marine resources. The Government’s goal is for ties are viewed in relation to one another and the Norway to be a pioneer in developing an inte- overall impact of these activities on the marine grated, ecosystem-based marine management environment and the ecosystems is assessed. A regime. Our work on management plans for Nor- clarification of the overall framework for activities wegian sea areas has attracted considerable inter- in the sea areas helps to facilitate coexistence bet- national attention. The purpose of the manage- ween different interests, in particular between ment plans is to provide a framework for value the fisheries, petroleum and maritime transport creation through the sustainable use of natural industries. resources and ecosystem services in the sea The management plans require systematic areas and at the same time maintain the monitoring of the marine environment and the structure, functioning, productivity and diversity implementation of measures to ensure an ecosys- of the ecosystems. The management plans are tem-based approach to the management of marine thus a tool for both facilitating value creation and resources. maintaining the high environmental value of the 104 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

The integrated management plan for the Sound and sustainable environmental and Barents Sea–Lofoten area was presented as a natural resource management is a key – and at the white paper in 2006 (Report No. 8 (2005–2006) to same time a cross-sectoral – element of Norwe- the Storting). The plan will remain effective until gian policy for integrated marine management. 2020 but will be updated at regular intervals. The This also applies to the High North. It is a central first update of the plan was presented as a white concern in work on the management plans and paper in March 2011 (Meld. St. No. 10 (2010– also a concern expressed in our cooperation with 2011)). In the present white paper, discussion of other countries. By adopting an ecosystem the management and exploitation of renewable approach to marine management, Norway is at and non-renewable resources in the northern sea the forefront of international efforts in this area areas is based on the updated management plan and a responsible steward of the abundant resour- for the Barents Sea–Lofoten area. ces in the Arctic. The geographical scope of the management The Government will implement the measures plans is limited to areas under Norwegian jurisdic- set out in the management plans, and will conti- tion. However, the transboundary nature of some nue ongoing efforts to strengthen the knowledge of the ecosystems and some aspects of the activi- base with a view to incorporating new knowledge ties concerned makes cooperation with other in future updates of the plan. The contacts alrea- countries essential. dyif established with other countries and with Even though the eastern (Russian) part of the regional actors will be strengthened to enable the Barents Sea falls outside the geographical scope development of robust regional cooperation on of the plan, the management plan for the Barents marine management in the High North, based on Sea–Lofoten area has implications for our rela- an integrated, ecosystem-based approach. Norwe- tions with Russia. During the preparation of the gian–Russian cooperation on the marine environ- management plan, Norway sought to keep Russia ment will be continued and expanded in scope informed of the direction, content and progress of with a view to establishing an integrated Norwe- the planning process, through established bilate- gian–Russian monitoring programme for the ral cooperation forums (in the areas of the envi- Barents Sea and developing a concept for a Rus- ronment, fisheries and energy). The Russians sian management plan for the Russian part of the were also invited to contribute to the process by Barents Sea. The Government will ensure the col- providing relevant information. The increasingly lection of basic data as well as the development broad cooperation under the Joint Norwegian– and exchange of scientific methodology so as to Russian Commission on Environmental Protec- enhance work on the integrated marine manage- tion in recent years can be seen as one positive ment plans. In the view of the Government, this is outcome of this approach. A concrete result of this important both as a means of strengthening our cooperation is the preparation of a joint Norwe- own work on integrated management plans and as gian–Russian environmental status report for the a way of assisting other countries with similar Barents Sea (presented in the autumn of 2009). In processes. Particular priority will be given to coo- the updated management plan the Government peration with Russia on the development of rele- announced that it would cooperate with Russia on vant methodology. The Government’s long-term the establishment of an integrated Norwegian- aim is for all countries that are responsible for Russian monitoring programme for the Barents managing sea areas adjacent to those under Nor- Sea, with the aim, in particular, of assisting in the wegian jurisdiction to develop integrated manage- development of a Russian management plan for ment plans. This topic is being given priority in the Russian part of the Barents Sea. Cooperation our contacts with relevant actors such as the EU on this issue began under the Joint Norwegian– and Canada. Russian Commission on Environmental Protec- tion in 2011. 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 105 The High North

10 Maritime safety, oil spill preparedness and response, and search and rescue capacity

Figure 10.1 The Vardø vessel traffic service centre. Photo: Norwegian Coastal Administration.

10.1 Maritime safety and preparedness In addition, reduced ice cover will improve and response to acute pollution conditions for shipping and give easier access to natural resources, which in turn may lay the foun- Considered in isolation, an increase in maritime dation for new industrial activities. Growing activ- traffic and in oil and gas activities means that ity may increase the need for regulation in the there is an increased risk of accidents and pollu- northern sea areas and may have implications for tion. The white paper First update of the Integrated search and rescue capacity and oil spill prepared- Management Plan for the Marine Environment of ness and response. the Barents Sea–Lofoten Area, Meld. St. 10 (2010– The Government wants Norway to play an 2011), includes an in-depth discussion of environ- active role in the development of national and mental risk analyses, oil spill preparedness and international rules and industry standards and response and the prevention of acute pollution in in knowledge-building and information-sharing the northern sea areas. to reduce risk. Norway will also encourage com- panies to develop management and quality 106 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

Figure 10.2 Testing an oil boom from the bridge across Raftsund in Nordland county. Photo: NorLense.

assurance systems and promote enhanced able vessel information during marine rescue awareness throughout the value chain, both of operations, both in instances where a vessel is in which are essential for ensuring a high standard distress itself and in cases where vessels in dis- of safety. tress can be helped by other vessels. By making use of new technology, the Govern- The establishment of a national forum on oil ment has gained a better overview of Norway’s spill preparedness and response has strengthened large sea areas in the High North. This makes it cooperation between public and private actors. easier to detect anomalies at an early stage, which The forum is headed by the Norwegian Coastal in turn strengthens Norway’s ability to prevent or Administration, and focuses particularly on the limit the impact of accidents. High North. More accurate and reliable weather It is possible to reduce risk by working sys- forecasts provide a better basis for planning mari- tematically. In recent years, the Government has time activities and fishing, and help to improve given priority to improving maritime safety and safety standards. The construction of a new mete- preparedness and response to acute pollution in orological radar at Gednje on the Varanger penin- the High North. The launch of the AISSat-1 satel- sula is under way, and is due to be completed in lite in the summer of 2010 has extended the moni- the summer of 2012. This will provide better mete- toring range of the Automatic Identification Sys- orological radar coverage all along the coastline of tem (AIS), which plays a key role in monitoring Troms and Finnmark counties. shipping traffic and ensuring maritime safety. The In 2010, in line with the aim of further develop- satellite gives the vessel traffic service centres a ing the Norwegian Coastal Administration’s mari- better overview of activities far from the coast. It time safety expertise as mentioned in New Build- also gives the rescue coordination centres valu- ing Blocks in the North, a national centre of exper- 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 107 The High North

Box 10.1 Barents 2020: BarentsWatch BarentsWatch is a civilian monitoring and infor- mation system, the aim of which is to make rele- BarentsWatch open system – public information vant information about the northern sea and portal coastal areas available to users, the authorities The BarentsWatch public information portal will and decision-makers, and to ensure that infor- enable various institutions in the public adminis- mation is shared effectively. BarentsWatch will tration to share their data more easily and make make use of and coordinate existing services, it available to everyone. It will develop functions thereby providing an overall picture of activities such as map services, and will provide editorial in our sea areas and conditions under the sur- content for the general public in Norway and face of the sea. worldwide – for individual citizens, the media, The BarentsWatch concept has been devel- the private sector, educational institutions and oped as part of the Government’s High North organisations with responsibilities within strategy, and it comprises two systems, one marine and maritime administration and open and one closed. The Government has research. The operations and development cen- given the Ministry of Fisheries and Coastal tre for the public information portal will be Affairs and the Norwegian Coastal Administra- located in Tromsø. tion the task of setting up the open system, the BarentsWatch public information portal, in close cooperation with relevant institutions and BarentsWatch closed operational system – portal research communities in various parts of the available to government agencies only public administration. The Ministry of Fisheries A number of government agencies share man- and Coastal Affairs heads the BarentsWatch agement responsibilities for Norwegian coastal ministerial group, in which the Ministry of For- and marine areas. Between them, these agen- eign Affairs, the Ministry of the Environment, cies have a large volume of quality-assured infor- the Ministry of Trade and Industry, the Minis- mation on activities in Norwegian coastal and try of Defence, the Ministry of Justice and Pub- marine areas. This information is currently lic Security, the Ministry of Education and stored in the agencies’ internal systems, and is Research and the Ministry of Petroleum and only to a limited extent shared electronically Energy also participate. The BarentsWatch pub- with other agencies. lic information portal will come into operation in The plan is for the closed system to give gov- 2012; meanwhile the Government will continue ernment agencies that have operational respon- to work on the closed system. sibilities at sea access to information that is In 2010, BarentsWatch received an allocation based on a joint evaluation of the situation, of NOK 20 million under the Ministry of Foreign which in turn can provide the basis for improved Affairs’ Barents 2020 grant scheme. In 2011, operations, across different areas of responsibil- BarentsWatch was allocated NOK 20 million in ity. Work on the closed system is continuing. funding under the budget of the Ministry of Surveillance by the Armed Forces and informa- Fisheries and Coastal Affairs. The Govern- tion gathering on the military situation are con- ment’s budget proposal for 2012 includes an allo- tinuing as before and are unaffected by the cation of NOK 30 million to BarentsWatch under development of the BarentsWatch closed sys- the Ministry of Fisheries and Coastal Affairs’ tem. budget.

tise on maritime safety, oil spill response and mon- and traffic monitoring tasks. It will also report on itoring was established, linked to the Vardø Vessel and monitor high-risk traffic along the coast. Traffic Service Centre. In 2011, NOK 5 million In various arenas, Norway has also given pri- was allocated to the centre under the budget of ority to developing cooperation with Russia on the Ministry of Fisheries and Coastal Affairs. The maritime safety and preparedness and response to centre has been assigned projects in the field of acute pollution. Close cooperation has been estab- oil spill preparedness and response in Arctic areas lished between Norway and Russia on maritime 108 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North safety and oil spill preparedness and response in Russia is also focusing more on the need to the Barents Sea. develop more reliable technology for operations In 2006, Norway and Russia signed a memoran- in Arctic waters and more effective oil spill pre- dum of understanding on strengthening maritime paredness and response. In the Government’s safety cooperation in the Norwegian Sea and the view, it is very positive that Russia has taken the Barents Sea. The MoU and a bilateral agreement initiative to give this issue even higher priority in on oil spill preparedness and response are being our bilateral energy dialogue. Russia too has followed up in working groups. The working group ambitions to develop oil spill preparedness and on maritime safety is drawing up a proposal for a response technology as a major business area in vessel reporting system for the Barents region. the Barents Sea and internationally. The Govern- There is exchange of information on maritime traf- ment intends to make use of the strengthened fic at agency level. Norway and Russia carry out cooperation between Norway and Russia on oil joint oil spill response exercises every year. spill preparedness and response technology to The Government considers it important to promote Norwegian business interests. strengthen cooperation on emergency prepared- The joint Norwegian–Russian Exercise Bar- ness and response to acute pollution in Arctic ents has been held every year since the 1980s. It waters. Norway played an active role in the deci- is based on bilateral agreements between Norway sion to launch the development of an international and Russia, the most recent of which is the Nor- instrument on Arctic marine oil pollution pre- wegian–Russian search and rescue agreement of paredness and response, which was reached at 4 October 1995. Traditionally, the exercise was a the Arctic Council’s Ministerial Meeting in Nuuk maritime search and rescue exercise involving the in May 2011. A specially appointed task force, Joint Rescue Coordination Centre Northern Nor- jointly led by the US, Russia and Norway, will way and the Maritime Rescue Coordination Cen- present the result of these efforts at the Ministe- tre in Murmansk. Norway and Russia have rial Meeting in 2013. The Government is giving responsibility for planning, coordinating and car- high priority to this work. Norway will also take rying out the exercise in alternate years. In 2006 over the chairmanship of the Arctic Council’s the exercise was expanded to include prepared- Emergency Prevention, Preparedness and ness and response to acute pollution, based on the Response (EPPR) Working Group in 2011, which 1994 agreement between Norway and Russia on will further strengthen our involvement in devel- oil pollution preparedness and response in the oping closer regional cooperation in the area of oil Barents Sea. A search and rescue operation is spill preparedness and response. often followed by an oil spill response operation, The Government’s High North committee has and so it is important to have close operational pointed out that Norway, as one of the countries in coordination between the various actors. For this the world with most expertise in the areas of mari- reason, the Norwegian Coastal Administration time safety and preparedness and response to also participates in the exercise. The Joint Rescue acute pollution, has a good starting point for Coordination Centre Northern Norway and the developing this as a business area in its own right. Maritime Rescue Coordination Centre in Mur- This is reinforced by the fact that Norway has mansk also cooperate closely in connection with strict statutory requirements, a high level of real incidents. expertise, strong research institutions, a con- structive climate of cooperation between the vari- ous actors and a large number of companies with 10.2 Search and rescue cutting-edge expertise. The Government’s aim is that Norway should Long distances, a demanding climate and limited be at the forefront of international efforts to pro- availability of rescue personnel and equipment mote maritime safety and preparedness and are characteristic of the Arctic region. This response to acute pollution in the High North. means that three considerations are crucial. The Government intends to facilitate coopera- Firstly, it is important to prevent accidents, tion between oil companies, the supplier industry because the consequences for both people and and knowledge institutions so that they can be at the environment will often be greater in the event the forefront technologically and can gain leading of accidents in the High North than elsewhere. In market positions as regards the development and the Government’s view, particularly stringent export of oil spill preparedness and response tech- maritime safety standards are therefore required. nology. Secondly, cooperation between the countries in 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 109 The High North

the Arctic Council (see Chapter 7.2) establishes legally binding search and rescue cooperation, including better regional organisation of search and rescue services in the Arctic. Under Article 98 of the Convention on the Law of the Sea, every coastal state must promote the establishment, operation and maintenance of an adequate and effective search and rescue service, and must cooperate with neighbouring states through regional arrangements as circumstances require. Most of the Arctic has already been divided into search and rescue regions (SAR regions), but in certain areas the division of responsibility is unclear or inappropriate. Norway, Denmark (Greenland) and Russia have therefore agreed on a more suitable delimitation of our SAR regions. Norway’s SAR region has been extended, so that it now includes the area north of Svalbard and to the North Pole, and its border with the Russian SAR region has been moved slightly further east. This gives a natural division of responsibility between the various countries, and reflects their actual search and rescue capacity. A search and rescue (SAR) agreement will not solve all the problems caused by an increase in maritime traffic in the Arctic. Long distances may Figure 10.3 A rescue operation. mean that it will not be possible to reach those in distress in time. The International Maritime Orga- Photo: Vebjørn Karlsen / 330 squadron nization (IMO) has prepared guidance for ships operating in areas remote from SAR facilities. One the region is essential for making effective use of of the recommendations is that voyage “pairing” the rescue personnel and equipment available, should be considered, so that if two or more ships and for ensuring that rescue operations are con- are operating in the same general area at the same ducted as swiftly as possible. Finally, it is impor- time, each can be used as a SAR facility in case of tant to be aware that time considerations, the dis- accident to the other. Longyearbyen may become tances involved and the harsh climate will make more important as a base for search and rescue some rescue operations impossible, regardless of and preparedness and response to acute pollution the resources allocated to search and rescue ser- as activity in the Arctic Ocean increases. This is vices. described in more detail in the most recent white Responsibility therefore lies with individual paper on Svalbard (Report No. 22 (2008–2009) to companies and their industry organisations to the Storting). work systematically to reduce the risk of acci- Because of its global coverage, the satellite- dents, and to ensure that they are able to manage based distress alert system COSPAS-SARSAT is crises themselves to a greater extent than is an important tool for international search and res- required in other waters. The Government wishes cue operations. Since 1982 Norway has partici- to contribute to openness about the problems pated in COSPAS-SARSAT and has had local user involved, and to the development of knowledge terminals, or ground receiving stations, in and transfer of experience. Tromsø, Fauske and Svalbard. The Joint Rescue In the Ilulissat Declaration (2008), the five Arc- Coordination Centre Northern Norway in Bodø is tic coastal states Canada, Denmark, Norway, Rus- responsible for responding and initiating search sia and the US stated their intention of strengthen- and rescue operations, and for passing on distress ing search and rescue capabilities and capacity alert messages to Greenland, Iceland, Sweden, around the Arctic Ocean through cooperation and Denmark, Finland, Estonia, Latvia and Lithuania. the sharing of information. The Arctic Search and The Government has submitted a draft resolu- Rescue Agreement between the member states of tion to the Storting (Prop. 146 S (2010-2011)) pro- 110 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

Figure 10.4 Search and rescue responsibilities in the Arctic. posing that the search and rescue service in Sval- Government has started a procurement process bard should be strengthened. The draft resolution for new rescue helicopters with a view to having proposes that from 2014, the Governor of Sval- them in place by 2020. The new helicopters will bard’s helicopter service should have two large have a longer range, greater cargo capacity and helicopters and a better response time, compared better search and rescue equipment. Growing to the one large helicopter and one medium-sized activity in the High North will be one of the fac- helicopter it has today. The reason for these pro- tors taken into account in dimensioning the future posals is that Norway is an important actor and service. The resources available to the Armed experienced participant in search and rescue Forces, including the Coast Guard, are also impor- operations in Arctic waters. tant for search and rescue operations and pre- It is currently not possible for ships to use paredness and response in the High North. broadband communication in the area between Other Arctic countries are also strengthening Svalbard and the North Pole. In the longer term, their rescue helicopter capacity in the High possible broadband solutions for this area should North. Iceland is participating in the Norwegian be explored, as maritime traffic is expected to procurement process. Denmark has introduced increase over the coming decades. large, long-range rescue helicopters at all its The Government will maintain and improve bases, and Canada is in the process of replacing Norway’s capability for effective search and res- its helicopters with new, long-range rescue heli- cue to ensure that Norway can carry out search copters. However, the Norwegian Government’s and rescue operations in its own and adjacent SAR ambitions for its rescue helicopter service are cur- regions. The purchase of new rescue helicopters rently not matched or surpassed by any other would greatly improve the helicopter service. The country. 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 111 The High North

11 Fisheries, aquaculture and marine bioprospecting

Figure 11.1 From the Lofoten cod fishery. Photo: Norwegian Seafood Export Council. 112 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

Norway is responsible for the management of huge sea areas that are home to some of the world’s richest fish stocks. The fisheries sector is Norway’s second largest export industry, after the oil and gas industry, and Norway is the world’s second largest exporter of fish and fish products after China. The fisheries sector (fishing, aquacul- ture and fish processing) provides employment for almost 5 % of the labour force in North Norway and is very important for maintaining settlement patterns. In addition, access to high-quality pro- tein is of great strategic importance in a world with a constantly growing population and where people are becoming increasingly health con- scious. Norway’s ambition is to be the world’s leading seafood nation. This means that we must be at the forefront of developments in knowledge in areas such as sustainable use of resources, the marine environment, the climate system, product devel- opments and markets. The fisheries sector is innovative: technologi- cal advances make fishing operations more effi- cient, and new industries arise out of the knowl- edge and activity generated. In the 1970s and 1980s, aquaculture and fish farming were new industries; now marine bioprospecting initiatives offer new opportunities for sustainable value cre- Figure 11.2 Lowering RIB and crew from the Coast ation in a number of industrial sectors. Guard vessel KV Senja for a fisheries inspection. Photo: Per Thrana. 11.1 The fisheries industry in the High North Today the Barents Sea is home to the world’s largest cod stock, the haddock stock is at a record The fisheries sector has always played an impor- level, and the capelin stock is also strong. During tant role both as a livelihood and as a mainstay of the past 10–12 years, the shared Norwegian–Rus- the local culture in the High North. In recent sian fish stocks have been managed according to decades, the sector has undergone major struc- long-term strategies based on the precautionary tural changes, and is now a modern and efficient principle. This has been a very successful industry. The number of actors has been reduced, approach, which has helped to rebuild stocks that but fishing and aquaculture are still of great were previously overfished. importance for employment and economic activity In recent years, a great deal of progress has in many coastal communities. Sustainable har- also been made in harmonising the rules for cod vesting is a fundamental principle of fisheries and haddock fishing in the Barents Sea. For exam- activity, in the High North as elsewhere, and a ple, uniform rules on mesh sizes and minimum long-term approach to management has resulted sizes have now been adopted that apply to both in a very robust resource base. Norwegian and Russian waters. In 2009, 1.17 million tonnes fish were landed in The Barents Sea fisheries make a key contri- the three northernmost counties of Norway. bution to value creation and the maintenance of According to figures from Statistics Norway, the viable coastal communities in North Norway. In total landed value of the catch in the Barents Sea– 2010, the landed value of Norwegian catches har- Lofoten area was NOK 6.3 billion in the same year, vested from the Norwegian–Russian joint stocks or 56 % of the total landed value for Norwegian in the Barents Sea was about NOK 4.2 billion, and fishing vessels. the total export value was about NOK 7 billion. 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 113 The High North

Box 11.1 The Joint Norwegian–Russian Fisheries Commission The Joint Norwegian–Russian Fisheries Com- agree on reciprocal fishing rights in each other’s mission, which deals with fisheries management zones and exchange quotas for both joint stocks in the Barents Sea, is one of the most important and national stocks. focal points for institutional cooperation The TACs determined by the Commission between Norway and Russia. The Barents Sea is are based on management strategies agreed by one of the world’s most productive sea areas. Norway and Russia and on recommendations on The most important fish stock here, the North- catch levels from the International Council for east Arctic cod, is much the largest of the 30 or the Exploration of the Sea (ICES). The Council so cod stocks in the North Atlantic. It is also one includes both Norwegian and Russian scientists. of the best managed. The status of the cod stock This ensures that biological considerations are in the Barents Sea has varied, but it has never taken into account when the Norwegian–Rus- been anywhere near collapse, and is now at a sian quotas for the Barents Sea are determined. historically high level. The quotas are based on a precautionary The healthy state of the stock is due to a approach, and the objective is to ensure a high combination of favourable natural conditions, long-term yield. including the inflow of nutrients into the Barents In the 1990s, the scope of the Commission’s Sea, and very successful and effective coopera- work was extended to new areas. In 1992, Nor- tion on management of the stock by the Joint way and Russia agreed to expand their coopera- Norwegian–Russian Fisheries Commission. A tion on fisheries management and control, and joint management strategy and cooperation on in 1993 the Permanent Russian–Norwegian resource control, and in particular steps to com- Committee on Fisheries Management and Con- bat IUU fishing, have been key factors. trol was established. Under this cooperation, a Since the mid 1970s, Norway and Russia range of specific measures have been intro- have practised joint management of the most duced to improve control of fisheries resources, important fish stocks in the Barents Sea: cod, including routines for closer cooperation haddock, capelin and Greenland halibut. The between the two countries’ coast guard and extension of fishery limits was a much-dis- inspection authorities, for example the cussed topic in the context of the law of the sea exchange of information on catch and landing for several years, and by the mid-1970s, the prin- data and exchanges between inspectors on land ciple of 200-mile exclusive economic zones was and coast guard observers. emerging. The fisheries cooperation between In addition, the parties agree on various Norway and Russia was formalised by the technical measures on for instance mesh sizes, Agreement of 11 April 1975 on cooperation in minimum sizes, the use of sorting grids in trawl the fisheries sector and the Agreement of 15 fisheries and criteria for closing areas to fishing October 1976 on bilateral relations in the fisher- because the intermixture of undersized fish is ies sector. These are reciprocal agreements that too great. Considerable progress was made in take a balanced approach to the management of harmonising regulatory measures for the fisher- joint fish stocks and the exchange of quotas for ies on both sides of the border in 2010. national stocks. The parties also make decisions on the The Joint Norwegian–Russian Fisheries framework for research cooperation. Marine Commission was established under the 1975 research cooperation between Norway and Rus- agreement, and held its first meeting in January sia goes all the way back to the early 1900s, and 1976. At its annual meetings, the parties deter- was formalised as early as the 1950s. The results mine total allowable catches (TACs) for each of this research form the basis for the manage- stock and share them between Norway, Russia ment decisions made each year by the Joint Nor- and third countries. The proportions of the wegian–Russian Fisheries Commission, and are TACs allocated to each country have remained therefore of crucial importance for the manage- unchanged, and are an important reason for the ment of the joint fish stocks in the Barents Sea. stability of the cooperation. The parties also 114 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

The aim is to continue the close cooperation Norway’s strategy has been to combine bilateral between Norway and Russia within the frame- cooperation on resource control with 16 different work of the Joint Norwegian–Russian Fisheries fisheries nations with an active approach within Commission (see Box 11.1), so that the Barents the EU, UN, FAO and regional fisheries manage- Sea fisheries can provide a model for international ment organisations. The introduction of port state resource management. The new maritime delimi- control measures, international guidelines for tation treaty includes an annex that is intended to reducing discards of fish and the work on flag facilitate the continuation of this cooperation. state responsibilities are important milestones in The Commission has established the most this context. important fisheries management principles for the The indigenous dimension is also important in future. Quota negotiations used to be the main the fisheries sector. A government-appointed com- issue, but now that agreement has been reached mittee submitted a report1 on fishing rights off on quota-sharing and a management strategy, this the coast of Finnmark on 18 February 2008. The is more or less a technicality. With this as a basis, Ministry of Fisheries and Coastal Affairs and the the Norwegian–Russian fisheries cooperation can Sami Parliament (Sámediggi) have held consulta- be developed into a broad strategic partnership, in tions on how to follow up the committee’s recom- which the two countries both promote these man- mendations. On 9 May 2011, they reached agree- agement principles in multilateral forums. ment on amendments to the Act relating to the Agreement on how to share the available right to participate in fishing and hunting, the resources and a common understanding of the Marine Resources Act and the Finnmark Act, and importance of long-term, sustainable marine man- on measures to be implemented. agement are of crucial importance for the close The Sami Parliament has agreed to these pro- fisheries cooperation between Norway and Rus- posals with a proviso regarding interpretation of sia. The Norwegian and Russian authorities have their legal basis. The next step will be for the Gov- made a concerted effort to combat illegal, unre- ernment to submit the matter to the Storting. ported and unregulated (IUU) fishing in the Bar- ents and Norwegian Seas in recent years, which is an important reason why the fish stocks in these 11.2 Aquaculture in the High North areas are now in such good condition compared with stocks elsewhere. IUU fishing used to be a The Government’s objective is for Norway to be serious problem, but has been drastically reduced the world’s leading seafood nation. In 2010, the by painstaking efforts and the introduction of new fishing and aquaculture industry exported sea- measures. In 2009 and 2010, no IUU fishing of cod food to a total value of NOK 53.8 billion. Aquacul- or haddock was registered in these sea areas. ture products accounted for 62 % of this figure. This is a victory for the environment, for the fish- About one-third of aquaculture production in Nor- eries authorities in Norway and Russia, and for way takes place in North Norway, and production law-abiding fishermen and society as a whole. As a is rising. Nordland is, together with Hordaland in result of these efforts, resources valued at over Western Norway, the country’s largest aquacul- NOK 1 billion a year are no longer being removed ture county, and production in Troms has more by criminal networks, and can be harvested for than doubled since 2005. the common good by law-abiding actors. Salmon and trout are the main aquaculture Taking action against IUU fishing is a demand- products in North Norway. In 2011, the Govern- ing task, and cooperation is needed at both ment decided to permit 5 % growth of salmon and national and international level. To strengthen trout production in Troms and Finnmark. The Norway’s efforts, a national advisory group was Government will facilitate further growth in the established in 2009 to combat organised crime aquaculture industry within an environmentally linked to IUU fishing. The network includes sustainable framework. experts from the police, the Norwegian National Further growth will be based on the Govern- Authority for Investigation and Prosecution of ment’s strategy for an environmentally sustain- Economic and Environmental Crime (Økokrim), able aquaculture industry. An important element the Directorate of Fisheries, the Coast Guard, the of this strategy is to ensure that the industry Norwegian National Coastal Administration, the makes more effective use of the areas set aside for Directorate of Customs and Excise and the Direc- torate of Taxes. 1 NOU 2008:5 Retten til fiske i havet utenfor Finnmark (Fish- ing rights in the sea off Finnmark). (Norwegian only.) 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 115 The High North

siderable potential for increasing value creation, for example through processing, by making better use of byproducts, and by improving operating efficiency. At present, only about 20 % of the salmon produced in Norway is processed before export. Processing provides local jobs, which is important for employment along the coast. Increasing local value creation will also enhance the standing of aquaculture production.

Farming of marine species Farming of species other than salmon and trout may become important in the future, particularly in North Norway. So far, cod has been given prior- ity. Cod thrive in the cold waters of the region, where conditions are more suitable than further south. A combination of private business interests and public-sector knowledge development has resulted in progress, but there are still both com- mercial issues, such as production costs, and envi- ronmental issues, such as escapes, that need to be resolved. If escaped fish survive to sexual matu- rity and breed with wild fish, characteristic traits of the wild fish could be lost. To prevent escaped farmed cod from affecting the genetic make-up of wild cod, releases of eggs and larvae from any Figure 11.3 Aquaculture. future cod farming should be avoided. The cod breeding programme run by Nofima Photo: Salmar. in Tromsø has an important role to play in solving the challenges related to cod farming and ensur- ing that cod can be farmed profitably. In addition, aquaculture. With this in view, the Ministry of an aquaculture research station, a fish health labo- Fisheries and Coastal Affairs appointed a commit- ratory, and a national centre for capture-based tee to examine how the use of areas where aqua- aquaculture have been established in the Tromsø culture is permitted can be optimised. The com- area. mittee’s proposals have been circulated for com- ment, and are now being considered by the Minis- try. The purpose is to ensure environmental sus- tainability while facilitating further growth in production. The availability of suitable localities for fish farming and a generally satisfactory envi- ronmental situation in North Norway provide a good starting point for further development of fish farming in the region. Value creation in the industry can be increased not only by boosting production, but also by increasing efficiency and enhancing the sales value of the fish produced. In spring 2011, the Ministry of Fisheries and Coastal Affairs com- missioned a study of the potential for further com- Figure 11.4 Rich marine life on the seabed of mercial development of the salmon and trout Isfjorden, Spitsbergen. farming industry. This showed that there is con- Photo: S. R. Birkely, Marbank. 116 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

11.3 Marine bioprospecting

There are probably more than 10 000 species Box 11.2 Marine bioprospecting about which we know little, according to Nor- Marine bioprospecting can be described as a way’s 2009 strategy for marine bioprospecting. systematic and targeted search for compo- These include species that live in cold Arctic nents, bioactive compounds and genetic mate- waters where salinity, light conditions and nutri- rial in marine organisms. This includes all ent availability vary. There are also species that types of marine organisms – micro-organisms live in oil reservoirs under high pressure and at such as bacteria, fungi and viruses, and larger high temperatures, and species that are adapted organisms such as algae, shellfish and fish. to difficult conditions in coastal waters or where Marine organisms are found in the open sea, there are high levels of pollution. This wide vari- coastal waters, fjords, the seabed and oil reser- ety of species indicates that there are prospects of voirs beneath the seabed. Marine bioprospect- finding marine organisms with unique biochemi- ing is a process that can lead to industrial pro- cal traits and that contain substances that can be duction of a variety of compounds that can be used for a wide range of different purposes. used in many different sectors. The Government considers that Norway’s long coastline and extensive sea areas offer rich opportunities in terms of access to resources and focus on relevant research and commercialisation high species diversity. Norway already has the of products derived from marine bioprospecting. infrastructure and research groups needed to col- The position of Marbank (located in Tromsø) as lect and screen a wide variety of marine organ- the national marine biobank will be strengthened isms. In combination with the national expertise through enhanced cooperation and coordination that has already been built up in the marine sector between institutions responsible for different col- and biotechnology, this gives Norway a good lections of marine organisms. This will take place starting point for a national initiative for marine within the existing budgetary framework. Innova- bioprospecting. The High North is important in tion Norway, the Research Council of Norway and this context because it is home to potentially inter- SIVA (the Industrial Development Corporation of esting Arctic marine organisms, marine industries Norway) have drawn up a joint integrated action are already established in the region, and plan for implementation of the Government’s research expertise and infrastructure is available. strategy for marine bioprospecting. Because of the potential for knowledge develop- ment and value creation, marine bioprospecting is an important element of the Government’s High North strategy. The Government has promoted marine bio- prospecting in the High North, for example through its 2009 strategy for marine bioprospect- ing, which identifies gathering marine organisms from the northern sea areas and further develop- ment of infrastructure and research activities as priority areas. The Government allocated NOK 59 million2 in 2010 and NOK 54 million3 in 2011 to activities in this field. The Government’s goal is for marine bioprospecting to result in new, sus- tainable value creation, and with this in view, it will

2 2010: Ministry of Fisheries and Coastal Affairs (NOK 25 million), Ministry of Trade and Industry (NOK 24 million) Ministry of Foreign Affairs (NOK 10 million, Barents 2020 grant scheme). 3 2011: Ministry of Fisheries and Coastal Affairs (NOK 25 Figure 11.5 Kelp farming. million), Ministry of Trade and Industry (NOK 29 million). Photo: Silje Forbord, SINTEF Fisheries and Aquaculture. 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 117 The High North

The use of algae as raw materials and as bio- Norwegian society as a whole and managed by mass for energy production is an area that offers the state. Access and benefit-sharing are impor- exciting opportunities for future development, tant for conservation and sustainable use of bio- and that will benefit from the new knowledge that logical diversity. Norway has signed the Nagoya will be developed through the Government’s Protocol on access to genetic resources and the marine bioprospecting initiative. Algae grow fast fair and equitable sharing of benefits arising from and do not need extra nutrients beyond the sup- their utilisation under the Convention on Biologi- plies brought with ocean currents. The Research cal Diversity. The protocol will enter into force 90 Council of Norway is supporting projects on the days after it has been ratified by 50 states. As part use of algae as feedstuff and the establishment of of the process towards Norway’s ratification of the industrial-scale farming and harvesting of algae protocol and of following up the national strategy along the Norwegian coast for bioenergy and fish for marine bioprospecting, the Ministry of the feed. It will take time before algae can be profit- Environment and the Ministry of Fisheries and ably grown for these purposes. The coastline from Coastal Affairs are drafting regulations governing Sør-Trøndelag and northwards has suitable areas the collection and utilisation of genetic material for farming algae. under the Nature Diversity Act and the Marine Genetic material obtained from the natural Resources Act. environment is a common resource belonging to 118 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

12 Oil and gas activities

Figure 12.1 The Arctic Princess docks at Melkøya. Photo: Statoil

The continental shelves in the Arctic are believed majority of the resources (84 % according to the to be the world’s largest unexplored areas with US Geological Survey) are thought to be located significant petroleum potential. There is consider- offshore. Since 2002, Greenland has awarded able uncertainty surrounding resource estimates licences for exploration and test drilling west and for these areas. In 2008, the US Geological Survey south of its land area. estimated that about 22 % of the world’s undiscov- Because of the expertise they have gained ered, technically recoverable oil and gas from working under demanding conditions on the resources can be found in the Arctic, or more spe- Norwegian continental shelf, Norwegian compa- cifically 13 % of the world’s undiscovered oil and nies are sought-after as partners for developing 30 % of its undiscovered natural gas (see Figure the oil and gas resources in the High North. The 12.2). It is thought that the undiscovered gas Norwegian petroleum and supplier industries resources in the High North for the most part have 40 years’ experience of exploration and pro- belong to Russia. Most of the exploration and pro- duction, and they have built up considerable duction activities in the High North are currently expertise, developed advanced technology and taking place onshore, primarily in Russia, Alaska established high standards for health, safety and (the US) and Canada, despite the fact that the the environment. 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 119 The High North

Figure 12.2 Estimated undiscovered oil and gas resources in the Arctic. Source: United States Geological Survey

The white paper An industry for the future – provide a framework for the sustainable use of nat- Norway’s petroleum activities (Meld. St. 28 (2010– ural resources and goods derived from the area, 2011)) describes the Government’s petroleum while at the same time maintaining the structure, policy and gives a broad overview of Norway’s functioning and productivity of the ecosystems in petroleum activities and the opportunities that exist the sea areas concerned. Integrated management in the High North. The Government will facilitate plans are thus a tool both for facilitating value cre- the further development of Norway’s petroleum ation and for maintaining the quality of the environ- activities in the Barents Sea, and will seek to ensure ment in sea areas.1 Although the management of that these activities have spin-off effects on value Norwegian petroleum resources is a matter of creation at the local and regional levels. It is crucial national concern, we also cooperate with other Arc- to provide a good basis for sound resource manage- tic countries, for example in the Arctic Council, ment and sustainable development in this region. with a view to developing guidelines for oil and gas This includes maintaining high health, safety and activities in the Arctic. environment standards, making sure that Norway Cooperation with Russia will be particularly is at the forefront in research and development and important in the time ahead. Under the treaty offshore technology solutions, and ensuring that between Norway and Russia on maritime delimita- we have well-developed and reliable search and tion in the Barents Sea and the Arctic Ocean (see rescue and oil pollution emergency preparedness and response systems. The integrated manage- 1 In March 2011, the Government presented its updated ment plans for Norwegian sea areas also establish management plan for the Barents Sea–Lofoten area. The the framework for petroleum activities in these plan clarifies the overall framework for management of the areas. The purpose of the management plans is to area, including oil and gas activities. 120 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

Box 12.1 Barents 2020: Harmonisation of health, safety and environment standards for petroleum activities in the Barents Sea The purpose of the project, which was initiated work in phase 3. In addition, topics were identi- by the Ministry of Foreign Affairs and driven by fied for further study in phase 3, in expert work- the petroleum industry itself with DNV and Gaz- ing groups. Phase 3 focused on the work of the prom as project managers, was to assess and seven working groups, and led to a final report recommend harmonised industry standards for that assessed 130 recognised international, health, safety and environment for oil and gas regional and national industry standards that activities in the Barents Sea, and associated mar- will be used as a basis in future operations. itime activities. The project has been divided Phase 4 has focused on developing additional into four phases, and was completed in Decem- requirements in areas that are currently not ade- ber 2011. It is a good example of cooperation quately covered by existing industry standards, between Norwegian and Russian industry for use on the Norwegian and Russian continen- actors in the petroleum sector in the High tal shelves in the Barents Sea. North. Phase 1 of the project focused on secur- Under the Barents 2020 programme, the ing the involvement of Norwegian and Russian Ministry of Foreign Affairs will support a follow- actors, and establishing a basis for discussions up project led by DNV with the aim of transfer- between the Norwegian and Russian actors. In ring experience from the cooperation between phase 2, Norwegian and Russian actors from Norway and Russia to other Arctic countries industry and the authorities worked together to where there are oil and gas activities. draw up scenarios that formed the basis for

Chapter 5.3), the part of the previously disputed The Government has also been involved in area that lies to the west of the delimitation line establishing a consortium of Norwegian and Rus- covers around 87 000 km2. The treaty takes a sian institutions that are interested in cooperating modern approach, with detailed rules and proce- on education, research and business activities in the dures to ensure the efficient and responsible man- energy sector. The Norwegian and Russian Educa- agement of any hydrocarbon deposits that extend tion and Research Consortium for International across the delimitation line (unitisation rules). Business Development in the Energy Sector The treaty entered into force on 7 July 2011, and (NAREC) was founded in 2010, and participants the Government will now initiate an impact include a number of Norwegian and Russian institu- assessment under the Petroleum Act, with a view tions. The consortium is headed by the High North to granting production licences for the previously Center at the Bodø Graduate School of Business, disputed area west of the delimitation line in the University of Nordland in Norway and the MIEP southern part of the Barents Sea (south of 74°30’ Institute at MGIMO University, Moscow, in Russia. N). If justified by the conclusions of the impact There is considerable potential for making assessment, the Government will present a white new discoveries in the High North, but there are paper recommending that this area should be many geological unknowns. If exploration is to be opened up for petroleum activity. As part of this made more effective, it is important to have better process, geological surveying and mapping of the geological models and improved understanding of seabed has begun in the area. The Norwegian the geology of the region. Petroleum Directorate started seismic surveying Research focusing on Arctic issues is one of on 8 July 2011, the day after the treaty on mari- the areas funded by the Research Council of Nor- time delimitation entered into force. This will be way’s petroleum research programmes. These the first systematic survey of the petroleum research programmes also seek to increase the resources in this area. involvement of North Norway’s business sector in The project on harmonisation of health, safety research and innovation projects. In the Optimal and environment standards for petroleum activities Management of Petroleum Resources (PETRO- in the Barents Sea, which is part of the Barents MAKS) programme, the number of projects 2020 programme, is an important part of our coop- including actors from North Norway increased eration with Russia. See Box 12.1 for more details. significantly in 2010. 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 121 The High North

Figure 12.3 The seismic vessel Harrier Explorer. Photo: Petroleum Geo-Services

The Government would like to see profitable a long-term petroleum industry. If more supplier activities offshore that also create positive spin-off companies are established in the region, this will effects on the mainland, and will work towards help to increase expertise and build professional this. The Government attaches importance to networks. It is crucial that businesses in North shaping policy in a way that makes the High Norway are able to compete on an equal footing North attractive to companies, so that they give with other potential suppliers to the petroleum the region priority in their portfolios. During the industry. An active dialogue and close interaction 21st licensing round, companies showed great between the authorities at local, regional and interest in carrying out exploration activities in national levels are important for achieving this. the southern Barents Sea. With the development of the Snøhvit and Goliat Oil and gas activities are already creating posi- fields, Hammerfest has become a centre for petro- tive spin-off effects. If these effects are to become leum activities in the High North, and it is a good more widespread, more discoveries that will be example of the major spin-off benefits that can be profitable to develop are needed. This will make it created. possible for the petroleum industry to expand in In the spring of 2011, Statoil made a significant North Norway. More exploration and the opening oil discovery on the Skrugard prospect in the Bar- up of new areas will be essential for achieving the ents Sea. This is a breakthrough discovery in this desired results. The Storting has therefore part of the Barents Sea, and it could provide the decided to initiate opening of the waters around basis for a new, independent development. In Jan Mayen and the part of the previously disputed August 2011, a gas discovery was made on the Nor- area to the west of the delimitation line in the varg prospect, for which Total E&P Norge is the southern part of the Barents Sea (south of 74°30’ operator. These discoveries will give rise to new N). New jobs can be created if North Norway has opportunities for activities in the Barents Sea in the 122 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North time ahead, and for further strengthening the petroleum industry in the High North. Local and regional assignments for the petroleum industry Box 12.2 Snøhvit create spin-off effects onshore, as we have seen in The development of the Snøhvit field in 2002 connection with the development and operation of was a milestone in developing the Barents Sea fields in other parts of Norway. as a petroleum province. It is the first offshore Petroleum activities off the Helgeland region gas development in the Barents Sea and Nor- of Nordland county (the Norne and Skarv/Idun way’s first liquefied natural gas (LNG) facility. fields) are creating spin-off effects in the munici- Up to 2 500 people were employed in the con- palities of the region. In 2007, the supply base Hel- struction phase, until the field came on stream gelandsbase in Sandnessjøen bought goods and in 2007. Operation, maintenance, modification services totalling NOK 280 million from compa- and support services for Snøhvit have created nies in Nordland. The companies, the municipali- 400 jobs, and three quarters of the employees ties and Nordland County Council are cooperating have been recruited from North Norway. to ensure that the petroleum activities that are Nearly NOK 3 billion of the overall deliveries starting up result in the establishment of local to the field come from companies registered jobs and businesses. in North Norway. Not only are the petroleum activities creating Impact assessments show that Snøhvit has significant spin-off effects in the form of increased reversed the negative population and employ- employment, they are also creating a broader ment trends in Hammerfest. New companies industrial base and more jobs that require special are being established, and there is now a expertise. In Hammerfest, the development of the shortage of manpower in the region. Housing Snøhvit field has helped to reverse a negative construction is expanding considerably, and a demographic and employment trend. substantial increase in municipal revenues is The consultancy firm Asplan Viak and the Nor- expected. Substantial investments have been dland Research Institute made a study of regional made in upgrading school buildings and infra- spin-off effects in connection with the updating of structure and in developing cultural facilities. the integrated management plan for the Barents The higher level of competence in the region Sea–Lofoten area,2 which gives an indication of resulting from the Snøhvit development has the potential for positive spin-off effects – such as also benefited other industries. value creation, jobs and improved welfare – from the development of new petroleum fields. It shows that development of oil and gas fields can create between 4 000 and 6 000 new jobs in North Nor- way and within the framework of Norwegian cli- way over a period of 30 years. This is based on a mate policy. Development of infrastructure may conservative estimate of the resources in the area. be necessary in order to increase industrial use of The resource scenario does not include potential gas in Norway. Any such projects must be market- resources in the previously disputed area west of based and driven by commercial interests. As the delimitation line, which would be additional to mentioned in the white paper on Norway’s petro- those included in the analysis. leum activities, Gassco is conducting a study of As indicated in the white paper on Norway’s development scenarios for gas infrastructure in petroleum activities, the Government will facilitate the High North, including opportunities for indus- increased industrial use of gas in Norway, pro- trial use of gas. vided that this is commercially viable and the With rising oil and gas production and mineral resource base is sufficient. The alternative value extraction and an increasingly central position of the gas is its market price. Industrial use of gas because of new transport routes, it may become in Norway must therefore be profitable, with mar- more attractive to locate additional industry in the ket-based gas purchase agreements. The Govern- High North. ment’s point of departure is that the industry The Government will take steps to ensure that should be developed in an environmentally sound new discoveries result in maximum value creation for society and promote local and regional spin-off 2 Regional ringvirkningsanalyse i forbindelse med oppdatering effects. The scale of the increase in industrial av helhetlig forvaltningsplan Barentshavet-Lofoten (Norwe- activity will depend on commercial conditions and gian only), http://www.regjeringen.no/upload/OED/Rap- Norway’s international climate commitments. porter/Ringvirkningsanalyse.pdf 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 123 The High North

13 Business development and value creation

Figure 13.1 Two offshore loading systems being transferred for use at the Hibernia field off the east coast of Canada. The systems were produced by the Miras Group, North Norway’s largest engineering concern, whose production facilities are located in Mo Industrial Park in Nordland. Photo: MIP Info.

13.1 Knowledge and innovation as a 40 % and 70 % respectively in the period 1997– basis for business development 2007). Similarly, productivity and productivity growth are significantly lower in North Norway New knowledge and innovation are needed to than in the rest of Norway. However, many large achieve maximum value creation on the basis of corporations have their head offices outside the natural advantages that exist in the High North Norway and growth in value creation from North. According to calculations by the Ministry these companies’ activities in North Norway is of Local Government and Regional Development,1 recorded in the area where their head office is economic growth is weaker in North Norway than located, not in the statistics for North Norway. in the rest of the country (value added rose by Promoting innovation is an important task across the whole country, including in North Nor- 1 KRD (2010): Deskriptiv analyse – næringer og samfunn i way. The publication Konjunkturbarometeret for området knyttet til forvaltningsplanen. Descriptive analysis Nord-Norge (“Business Trends Barometer for of population and industrial structure in North Norway (Ministry of Local Government and Regional Develop- North Norway”, Norwegian only), which is issued ment, June 2010) (Norwegian only). twice a year, presents current figures and projec- 124 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

Alaska1

Arctic Canada 2

Greenland &FI

Iceland

Arctic Norway 2

Arctic Sweden

Arctic Finland

Arctic Russia

0 % 20 % 40 % 60 % 80 % 100 %

Agriculture, hunting and forestry Fishing Mining and quarrying Manufacturing Electricity, gas and water supply Construction Trade, hotels & restaurants Transport & communication Other private services Government services

Figure 13.2 Industrial structure in Arctic regions. 1 For Alaska, fisheries are included under agriculture, hunting and forestry. 2 The bars for Canada and Norway are based on figures from 2007. tions for the future. The autumn 2011 issue global economy has so far had little impact on the reported increasing business activity in the North Norwegian economy and there is optimism region, including the petroleum industry, exports that activity in a number of sectors, including the from North Norway and tourism. Exports from petroleum industry, the metal industry, the North Norway were 38 % higher in the period Jan- marine sector, tourism and the construction uary–August 2011 than in the same period in industry, will increase. However, a shortage of 2010. Fish and fish products account for approxi- both skilled and unskilled labour remains a prob- mately one third of all exports from North Nor- lem in many areas of North Norway. The need for way and are particularly important for Troms and labour is increasingly met by immigrants and Finnmark. Other key exports from Finnmark migrant workers, who make up 14 % and 4 % of the include LNG (liquefied natural gas) from the workforce respectively, as opposed to 12 % and 3 % Snøhvit field and iron ore exported by Sydva- in the country as a whole. ranger Gruve. Nordland is the dominant indus- Natural resource-based industries and tourism trial county in North Norway2; there is significant play a particularly important role in North Nor- activity in the petroleum industry, in particular the way, and the public sector is larger than in the rest development of the Skarv field, in aquaculture and of the country. Oil and gas extraction and mining, in the mineral industry, where China is a major both onshore and offshore, are areas that are customer. gaining significance as are energy, the maritime According to the autumn 2011 issue of the industry and new forms of economic activity business trends barometer, uncertainty in the based on marine and land-based resources. We are dependent on knowledge, technology, capac- 2 Indeks Nordland 2011. (“Index Nordland 2011, Norwegian ity and expertise to maintain and further develop only) business activity in the north. 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 125 The High North

Alaska

Arctic Canada

Greenland &FI

Iceland

Arctic Norway

Arctic Sweden

Arctic Finland

Arctic Russia

0 % 20 % 40 % 60 % 80 % 100 %

Agriculture, hunting and forestry Fishing Mining and quarrying Manufacturing Electricity, gas and water supply Construction Trade, hotels & restaurants Transport & communication Other private services Government services

Figure 13.3 Percentage of total employment by industry for various Arctic regions, 2008. Figure 13.31 shows the percentage of total value added by industry in various Arctic regions in 20082. The percentage for mining – including oil and gas production – is highest in northern Russia, where it accounts for over half of total value added. In Alaska and Arctic Canada mining accounts for 29 % and 25 %, respectively, of value added. Public services (including the public administration and public health, education and social services) are particularly important in North Norway, where they account for about one third of total value added. In northern Russia the figure for public services is only 9 %. However, the armed forces are not included in the regional economic accounts for Russia. By comparison, in Alaska the armed forces account for some 23 % of total value added generated by the public services. 1 Source: Professor Ilmo Mäenpää, University of Oulu. 2 The division into regions in this table is the same as that used in the report The Economy of the North, which was drawn up by Solveig Glomsrød and Iulie Aslaksen, both researchers in Statistics Norway, in 2008. The only region of the US included in the table is Alaska. Canada: the Yukon Territory and the Northwest Territories, Nunavut. Denmark: Greenland and the Faroe Islands. Norway: Finnmark, Troms and Nordland. Sweden: Norrbotten and Västerbotten. Finland: Lapland, the Oulu region and Kainuu. Russia: Murmansk, Karelia, Arkhangelsk, Komi, Yamal-Nenets, Khanty-Mansia, Taimyr, Evenk, Sakha, Koryak, Magadan and Chukchi. The whole of Iceland is included.

A shortage of capital is one of the factors mak- This gives us a competitive advantage when it ing it harder for start-up companies to establish comes to knowledge-intensive industries. It also themselves in North Norway. In a white paper on means that it is likely and desirable that growth in state ownership (Meld. St. 13 (2010–2011), the the Norwegian business sector will take place pri- Government announced that it would put forward marily in industries that require a highly educated a proposal on the establishment of a number of workforce. By ensuring a higher level of educa- new country-wide seed money funds, and that it tion, Norway will gain a more productive labour would submit a separate proposal to the Storting force and greater potential to stimulate innova- as to how the funds should be organised. One of tion. these funds will be established in North Norway. In the Government’s view, steps need to be Norway has a highly educated population and taken to develop a more knowledge-based busi- the most highly educated workers are relatively ness sector in the High North. It is vital that com- less expensive to employ than in other countries. panies from other parts of the country, as well as 126 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North foreign companies, play a central role in this. Rele- between the sectors. According to the proposal, vant research will also be crucial for developing the councils will draw up a strategy to ensure last- knowledge-intensive business activity. This is ing dialogue with the social partners on the devel- clearly set out in the Research Council of Nor- opment of degree programmes and further and way’s revised Research Strategy for the Arctic and continuing education. Northern Areas (June 2011). The Government’s The high drop-out rate from upper secondary High North Committee has recommended that schools in North Norway also poses considerable knowledge-based business development be given challenges and is a general impediment to busi- top priority in research on the High North. ness development. The Government has launched A shortage of qualified and unqualified labour a three-year project aimed at establishing lasting is currently hampering the development of many cooperation between the central and local authori- communities in North Norway. Lack of manpower ties in order to improve pupils’ chances of suc- is a greater problem in North Norway than else- cessfully completing upper secondary education. where in the country, in part due to the industrial There is also a pressing need for closer coop- and population structure of the region. As set out eration between the educational institutions and in Official Norwegian Report 2011:3 (Norwegian the private sector in the areas of work experience only) on knowledge-based jobs and economic placements and teaching in primary and second- growth, it makes economic sense to ensure that ary schools. Better integration of immigrants in the growth in the number of knowledge-based local communities, an effective housing policy and jobs is spread across the entire country. A broad- the approval of existing educational programmes based effort in several policy areas is needed in for immigrants are other important measures for order to increase the number of knowledge-based increasing the availability of skilled labour in workplaces. Regionally based educational institu- North Norway. tions, themselves knowledge-based workplaces requiring highly educated staff, have a key role to play in the region in terms of generating know- 13.2 Infrastructure for transport and ledge and supplying qualified personnel to the electronic communications public and private sector. In order to meet the region’s need for exper- In the Government’s view, increased investment tise, it is important to be able to provide relevant in infrastructure is essential for strengthening education and training to the sparse population in Norway’s long-term ability to create value. The North Norway. Providing flexible educational National Transport Plan 2010–2019 includes a opportunities requires academic and technologi- number of projects of major strategic importance cal cooperation between educational institutions for the development of the High North. These in North Norway and elsewhere in the country. projects will be followed up in connection with the The universities and university colleges in annual budgets. North Norway are the main hubs of the region’s In the past, there has been a considerably knowledge infrastructure. In the Government’s lower level of ambition and a lack of ability to fol- view it is important that research and educational low up the financial framework in the transport institutions both in the High North and elsewhere plan in annual budget proposals. This situation in the country cooperate with existing and new has changed considerably since 2005. The finan- private sector actors in the High North. One of the cial framework set out in the National Transport objectives of the Research Initiative for Northern Plan 2010–2019 is NOK 100 billion higher than in Norway (NORDSATSING), which was estab- the previous transport plan. This will be crucial lished in 2009 with funding provided by the Minis- for the development of the road network in North try of Local Government and Regional Develop- Norway. The framework for state investment in ment, is to strengthen the links between the pri- new trunk road projects in North Norway is vate sector and the knowledge sector in North approximately 300 % higher in the 2010–2019 plan Norway. In the white paper Education Strategy than in the 2006–2015 plan. The total amount of (Report No. 44 (2008–2009) to the Storting), the funding allocated for the operation and mainte- Government proposed that each institution nance of trunk and county roads in Nordland, should establish a council for cooperation with the Troms and Finnmark has risen by 33 %, from social partners, including representatives of the NOK 1.2 billion in 2007 to NOK 1.6 billion in 2010. social partners and students. The purpose of the The increase in funding will also allow the imple- councils is to strengthen strategic cooperation mentation of a series of measures to improve fair- 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 127 The High North

Figure 13.4 Iron ore being transferred from train to ship in Narvik. Photo: Port of Narvik ways in Nordland, Troms and Finnmark, which National Transport Plan 2010–2019. As a follow-up will enhance the safety and efficiency of maritime to this, the transport authorities and Avinor AS transport in the High North. were commissioned by the Ministry of Transport It is also important to develop attractive labour and Communications and the Ministry of Fisher- market regions in the High North. The Govern- ies and Coastal Affairs to prepare a strategic ment is giving priority to upgrading the E6 trunk report on transport infrastructure needs in the road, which links the different parts of Norway High North. The aim was to generate a better together, all the way from Kirkenes in the far knowledge base for use in future decision-making north to Svinesund on the Swedish border in the on infrastructure development in the region. The south. Many of the projects will be implemented report was submitted to the Ministry of Transport in North Norway. The National Transport Plan and Communications and the Ministry of Fisher- 2010–2019 also gives priority to strengthening ies and Coastal Affairs on 22 June 2011. It is one of important road connections with Sweden, Finland a number of background reports that will serve as and Russia. input to the new national transport plan for 2014– The establishment of new infrastructure in vul- 2023. The new plan is to be submitted to the Stort- nerable areas may cause major disturbance to the ing in spring 2013, and will include an overall natural environment and lead to a rise in pollution review of the aims and strategy of the Govern- levels. The Government attaches great impor- ment’s transport policy. tance to limiting the negative environmental Long distances between communities and eco- impacts of infrastructure development by incorpo- nomic centres in North Norway mean that air ser- rating this into the planning process and ensuring vices and airports are crucial for the population that projects are carried out in accordance with and for business. A number of local initiatives for the national targets set out in Norway’s climate the construction of new airports or extension of and environmental policy. existing runways are underway throughout Nor- The Government also announced a review of way. Several of these projects are located in North transport infrastructure in the High North in the Norway. The transport authorities and Avinor are 128 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

Possible new 420 kV line 420 kV line 300/220 kV line 132 kV line Power station Transformer station

Figure 13.5 Electricity infrastructure in the northern parts of Norway, Finland and Sweden. Prepared by North Energy. to carry out an analysis of local initiatives related need to expand infrastructure capacity. The Gov- to the airport structure. Their report will form ernment will play an active role in developing the part of the basis for the new national transport necessary knowledge base and promoting con- plan for 2014–2023. tacts between political and business groups with The Government’s aim is to establish trans- interests in the region in order to provide a basis port infrastructure between Norway and neigh- for assessing needs and opportunities. Concrete bouring countries so as to link different parts of transport solutions that can meet the future needs the Barents region more closely together. The of the mineral industry should be assessed more Northern Dimension Partnership on Transport closely, in cooperation with Sweden and Finland. and Logistics will provide an arena for furthering One valid option is to increase the number of efforts in this area. The purpose of the partner- shipments moving through Norwegian ports via ship is to identify and implement effective projects the railways. This could be an attractive alterna- that can improve cross-border infrastructure in tive as Norway has ice-free ports and can accom- the region. The Government will cooperate with modate the largest ships. An increase in maritime neighbouring countries to attract co-funding from traffic in the High North could create a need for the EU for projects related to cross-border trans- improvements to the fairways and for further port. measures to monitor maritime traffic. It may also New projects on the extraction of ores and mean that some ports would need to be deepened. mineral resources in northern parts of Sweden The Government will consider these issues fur- and Finland and the potential for developing such ther in connection with the preparation of the new resources in North Norway may heighten the national transport plan for 2014–2023. The Gov- 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 129 The High North ernment will also promote the development of the Electricity production in North Norway is ports into hubs that can enhance business devel- based primarily on hydropower. In a normal year opment in the region. A project to establish good the region currently generates a surplus of connections between the ports and the rest of the approximately 4.8 TWh, but variations in water transport network would be relevant in this con- inflow mean that there are wide fluctuations from text. year to year and between seasons. There are also Industry must be prepared to make a financial large variations within the region. Whereas Nord- contribution to the development and operational land county has a surplus of electricity, Troms and costs of any projects to increase the capacity of Finnmark experience a deficit in the winter. It is the railway infrastructure, which are primarily therefore crucial to ensure that there is a reliable driven by the need for industrial transport solu- transmission grid in place. tions. Today, the electricity grid in large areas of The market for electronic communication has Troms and Finnmark is aging and has a voltage of been liberalised, and service providers develop 132 kV. Security of supply is also weaker in Troms services on the basis of demand and capacity and Finnmark than in other parts of the country needs. The three counties of North Norway have because large areas of these two counties are played a significant role in ensuring the expansion dependent on a single transmission line running of a high-capacity network over large areas. Finn- from Ofoten to Hammerfest. mark county, for example, is in the process of hav- Statnett is planning to construct two new 420 ing a fibre optic cable installed between eastern kV transmission lines – from Ofoten to Balsfjord Finnmark and Murmansk. Broadband, broadcast- and from Balsfjord to Hammerfest, to be com- ing, mobile telephony and mobile broadband are pleted in 2014 and 2017 respectively. This will all dependent on a robust and adequate network improve security of supply and expand capacity so for electronic communication. There are several that the transmission of renewable energy is also connections between the networks of the neigh- possible and consumption can be increased, for bouring countries in the High North, not least to example in connection with increased activity in ensure adequate capacity and redundancy the petroleum and mining industries. (backup connections) in case of network failure. In addition to projects designed to increase the The Government will continue its efforts to facili- north-south transmission capacity of the Norwe- tate the provision of a broadband network with gian electricity grid, Statnett is also looking at sufficient capacity to meet future needs in educa- ways of increasing transmission capacity between tion, health, the business sector and households neighbouring countries in the High North. Nor- across the whole of Norway. way is a part of the Nordic power supply system, and North Norway is more closely linked to Swe- den than to southern Norway. There are also 13.3 Electricity infrastructure and important connections to Finland and Russia from renewable energy eastern Finnmark. Statnett is seeking closer coop- eration on grid development in the High North, in Sufficient electricity production and transmission particular through its “Arctic Circle” project. The capacity in North Norway are essential for indus- company points out that as well as improving trial activity and business development in the security of power supply in the northern parts of region. The Government views it as very impor- Finland, Norway and Sweden, cooperation in this tant to ensure that Norway has an efficient elec- area could promote the development of renewable tricity grid throughout the country that facilitates energy sources, currently prevented by limited industrial activity and business development. The transmission capacity, and the establishment of Government also attaches great importance to new “green” business activity based on electrical close cooperation with neighbouring countries in power. Statnett has also initiated a project with the the High North and with the other Nordic coun- Finnish company Fingrid which will examine how tries. the grid in the High North can be developed in The development of electricity infrastructure the long term as part of the consideration of the has impacts on the natural environment and local proposed ring interconnector linking North Nor- communities. The advantages and disadvantages way, northern Finland and northern Sweden, the of new power lines are weighed up through licens- “Arctic Circle”. ing procedures and associated impact assess- Cooperation between grid operators in the ments and consultation processes. Nordic countries has traditionally been close, and 130 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North this is being continued through the European Net- some of the huge potential for renewable energy work of Transmission System Operators for Elec- production in the High North. tricity (ENTSO-E). In addition, Statnett and the The common market for green certificates will Swedish system operator Svenska Kraftnät (Swed- replace the system of investment grants for wind ish national grid) collaborate extensively on grid power under Enova. Promoting a shift in energy development. Continued close cooperation production and use through Enova and the between the system operators in the Nordic coun- Energy Fund, will, however, continue to be a part tries is crucial for further development of the grid of the Government’s renewable energy policy. In in North Norway. the future, Enova’s activities will focus on increas- ing the use of energy carriers other than oil, gas and electricity for heating, energy efficiency in Renewable energy industry and buildings and full-scale demonstra- There is great potential in the High North for tions of renewable energy technologies. This is in increasing renewable energy production. Prior line with Enova’s primary objective of promoting a notification and applications for hydropower proj- transition to greener energy production and use in ects in North Norway that could produce some 3 Norway, and will also result in a more diversified TWh per year are currently being considered by energy supply and better security of supply. the energy authorities. The region has abundant wind resources and the energy authorities have received notification and applications for a large 13.4 New prospects for the maritime number of wind power projects. According to a sector feasibility study carried out by the Norwegian Water Resources and Energy Directorate and As a result of global climate change the ice-cov- Enova SF in 2008, it would be technically possible ered waters of the Arctic Ocean and adjoining to produce some 4 TWh of wind power in the seas will gradually become more accessible to period up to 2025, provided that grid capacity is international shipping. An increase in maritime increased as planned. The licence applications for activity is expected particularly in connection with hydropower and wind power projects will be offshore oil and gas activities, the transport of assessed on the basis of scientific knowledge, and goods and equipment to and natural resources the advantages of each project will be weighed up from the Arctic and a gradual rise in transit ship- against its potential negative impacts on the envi- ping. ronment and other public interests. In the Barents Sea, traffic consisting of large The Government will work to unleash the tankers and bulk carriers to and from Russian potential of renewable energy through existing ports has risen from 200–240 ships with a cargo funding arrangements. Norway and Sweden have volume of 10–12 million tonnes per year during established a common market for green certifi- the period 2004–08 to over 300 ships with a cargo cates, which is an important component of a tar- volume of 18 million tonnes in 2010.3 Increased geted initiative to promote renewable energy pro- production of petroleum and mineral resources in duction. The two countries aim to increase their the Norwegian and Russian Arctic will lead to renewable electricity production by a total of 26.4 greater activity in the maritime sector. TWh by 2020. The common market for green cer- There will, for example, be a need for transfers tificates is technology-neutral. Producers of elec- at sea of gas condensate and oil from smaller ice- tricity based on renewable energy sources receive class vessels to large tankers for transport to the a green certificate for every MWh of electricity market. Ship-to-ship transfers of Russian crude oil produced. Income from the sale of green certifi- take place in winter in the Bøkfjorden at Kirkenes cates, in addition to income from the sale of elec- and in the Sarnesfjorden at Honningsvåg. In the tric power, will make it more profitable to build Government’s view, strict regulation of cargo new facilities for the production of electricity from transfers is necessary to ensure a high standard renewable energy sources. The common market of safety and to reduce the risk of environmental is due to come into effect on 1 January 2012 and damage. will remain in place until the end of 2035. A long- term partnership such as this provides a sound, 3 Source: First update of the Integrated Management Plan stable framework for the industry. The scheme is for the Marine Environment of the Barents Sea–Lofoten regarded as an important tool for unleashing Area, Meld. St. 10 (2010–2011) 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 131 The High North

Minimum extent of the Northwest Passage sea ice in the 1970s Northeast Passage Minimum extent of the sea ice in 2007 Possible new sea routes across the Arctic Ocean

ALASKA (USA)

RUSSIA

CANADA

GREENLAND

F

INLAND

AY ICELAND W

OR

N

N

DE

SWE

Figure 13.6 New sea routes in the Arctic Ocean.

An increase in maritime activity will also open possible alternative locations for a new oil termi- up opportunities for developing service and sup- nal in eastern Finnmark. A new terminal of this port functions at Norwegian ports. The Govern- kind could provide services to the oil and gas and ment welcomes the fact that onshore support maritime transport industries in the Barents Sea. functions for maritime and offshore activities are The report, published by the Norwegian Coastal being moved northwards. The investment made Administration in 2010, concluded that several of by the Port of Tromsø to enable it to carry out the ports in eastern Finnmark (Kirkenes, Vadsø, major maintenance work on platforms operating Vardø (Svartnes), Båtsfjord, Berlevåg and Kjølle- in northern waters is an exciting example of stra- fjord) could, with varying levels of investment in tegic positioning. In line with measures set out in infrastructure, be considered as possible future oil the report New Building Blocks in the North, the terminals. However, Kirkenes is the only existing Ministry of Fisheries and Coastal Affairs, in coop- port that meets the requirements for major cargo eration with the Ministry of Petroleum and handling and petroleum facilities. In order to Energy, commissioned the Norwegian Coastal strengthen the position of Kirkenes as a hub in Administration to draw up a report assessing the eastern Finnmark the Government is giving prior- 132 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North ity to upgrading the E105 road towards Russia. In possible rise in other forms of maritime traffic, addition, new infrastructure projects at Kirkenes e.g. in the cruise sector. airport may also be considered in connection with There are a number of challenges associated the preparation of the national transport plan for with shipping activities in Arctic waters, for exam- 2014–23. ple relating to maritime safety, environmental con- Interest in transit traffic through the North- siderations, greenhouse gas emissions, prepared- east Passage is growing. The sea journey from ness and response, monitoring and control. The Yokohama to Hamburg is approximately 40 % costs of building ice-class vessels are high. The shorter via the Northeast Passage than via the long polar night, the risk of ice formation on ves- Suez Canal and bunker consumption roughly 20 % sels, and high insurance premiums all push costs lower.4 There has been limited maritime traffic up. Also, it must be expected that traffic regularity between Europe and Asia through the Northeast and reliability will be lower in the Arctic than Passage since summer 2010. In the long term, the along other shipping routes. A comprehensive Northeast Passage may be a viable route for the review of shipping in the Arctic, resulting in the international merchant fleet, particularly due to Arctic Marine Shipping Assessment 2009 Report, the continuing growth in demand for raw materi- has been carried out under the auspices of the als from the developed Asian countries. DNV5 Arctic Council. The report provides an analysis of estimates a trade potential for shipping in the Arc- expected developments and contains a large num- tic of 1.4 million TEU6 in 2030, equivalent to 480 ber of specific recommendations for strengthen- transit voyages across the Arctic. For 2050, the ing maritime safety. trade potential rises to 2.5 million TEU and the The International Maritime Organization projected number of Arctic transit passages (one- (IMO) is currently developing a mandatory inter- way) to 850. However, these estimates depend on national code of safety for ships operating in polar assumptions about several factors, such as global waters (the Polar Code). This work is being led by economic development, structural conditions in the Norwegian Maritime Authority. The Govern- the global merchant shipping fleet and fuel prices. ment intends to play a leading role in the develop- The Russian authorities are taking steps to facili- ment of international rules and industry stan- tate regular traffic along the Northern Sea Route dards and in knowledge generation and knowl- with a view to strengthening Russia’s leading posi- edge-sharing efforts that help reduce the risks tion in maritime operations in the Arctic. Close associated with shipping in the Arctic. High prior- cooperation has been established between key ity is being given to completion of the Polar Code, Russian actors, such as Rosatomflot, and Norwe- which will encompass both safety and environ- gian business interests. The Government wel- mental considerations. comes the fact that Russia is strengthening infra- The Government attaches importance to structure and search and rescue capacity that will developing maritime research and shipping exper- help to make maritime activities in the area safer tise in the High North. The aim is to equip the and more efficient. Norwegian maritime industry to exploit the The estimates vary and are uncertain, but opportunities and meet the challenges associated there is little to indicate that regular shipping traf- with Arctic oil, gas and marine resources and the fic across the central Arctic Ocean can be estab- opening of new transport routes for energy and lished for several decades. Despite the uncer- shipping in the High North. Environmentally tainty, questions have been raised about what sound maritime operations under difficult condi- Svalbard’s role might be in a scenario involving tions, particularly in the High North, is one of the increased international maritime traffic in and priority research and innovation areas identified across the Arctic Ocean. It is important in this in the Government’s maritime strategy. This is context to differentiate between regular shipping also reflected in the priorities set for the allocation routes that could create a need for transhipment of funding for maritime research and innovation ports and other technical infrastructure, and a under the Research Council’s programme Mari- time Activities and Offshore Operations (MAROFF) and schemes administered by Innova- 4 Source: Shipping in Arctic Waters, report by Ocean Futu- tion Norway. Arctic transport and operations is res. one of the strategic focus areas of the maritime 5 Shipping across the Arctic Ocean, Research and Innova- tion, Position Paper 04 – 2010, DNV industry’s research and innovation strategy plat- 6 TEU (twenty-foot equivalent unit), standard unit for cargo form, Maritim 21. carrying capacity. 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 133 The High North

In order to strengthen competence in the industry, several of the most influential maritime Box 13.1 Barents 2020: actors in the High North have come together to Centre for High North Logistics establish an Arctic maritime cluster. This is a The Ministry of Foreign Affairs provided fund- meeting place where strategic partnerships can ing for the establishment of the Centre for be developed in order to strengthen the maritime High North Logistics (CHNL) under the Bar- sector in the High North. In 2011, the Ministry of ents 2020 scheme. The aim of the centre is to Foreign Affairs provided funding for a pilot pro- develop practical knowledge and networks ject aimed at enabling the cluster to meet the cri- between the relevant authorities, businesses teria required to qualify as a candidate for Innova- and research institutions in the fields of mari- tion Norway’s Arena programme. time logistics and shipping in the High North. A number of projects and activities have been initiated by the centre, including a comprehen- 13.5 Mineral extraction in the High sive study entitled Shipping in Arctic Waters North carried out by the research institute Ocean Futures. The report from the study is being The Government plans to present a strategy for developed into a dynamic, searchable data- the mineral industry in the spring of 2012. The base and knowledge hub on shipping in the strategy will consider the framework conditions Arctic. In April 2011, the centre established its for the mineral industry and mineral policy from a Arctic Logistics Information Office in national perspective. Kirkenes, in cooperation with the Barents The global demand for ores, metals and mine- Institute and the Norwegian Barents Secretar- rals is rising rapidly. The Government therefore iat. intends to carry out a survey of Norway’s mineral resources in the High North. New mining opera- tions could form the basis for business develop- ment and value creation. The Government will In the Government’s view, there are particular develop contacts with Finland and Sweden so that benefits to be gained by developing new business the region can be considered as a whole, for activity in areas of industry and knowledge where example as regards infrastructure and compe- Norway already enjoys a strong position. Norway tence building. There is also potential for coopera- has one of the most dynamic shipping and mari- tion with Russia in the area of mineral extraction. time sectors in the world and the Government The exploitation of ore and mineral resources in considers it important that Norwegian actors are the High North will also be one of the topics in a position to secure market shares in the High addressed during Norway’s chairmanship of the North. A strong maritime industry in this region Barents Euro-Arctic Council and its presidency of will also demonstrate Norwegian knowledge and the Nordic Council of Ministers. The topic will Norway’s presence in the area. The maritime also be reflected in the work of the Northern industry is the fourth largest industry in North Dimension Partnership on Transport and Logis- Norway. With its 9 000 person-years, the industry tics. recorded a turnover of NOK 14 billion in 2008, Mining activities can be land-intensive and can corresponding to approximately 7 % of total value have considerable environmental impacts related added in the region.7 The maritime sector in to environmental disturbance, waste manage- North Norway continues to be dominated by fish- ment and pollution. The development of new min- ing vessel companies but recent years have seen ing operations and new infrastructure related to the development of many small and medium-sized transport, energy and industry could affect impor- companies producing offshore equipment, often tant species and habitats and remaining areas for use in the Arctic.8 without major infrastructure development. The Norwegian authorities take these environ- 7 Source: Survey of value creation carried out by Menon mental challenges seriously and require the Business Economics and Northern Research Institute industry to meet strict requirements to safeguard (Norut) Narvik, commissioned by Maritimt Forum Nord in the environment. The Mineral Resources Act, the 2009 (Norwegian only). Nature Diversity Act and the Pollution Control Act 8 Source: En kunnskapsbasert maritim næring (“A know- ledge-based maritime sector”, Norwegian only) published provide the framework for new mining activities, by Menon Business Economics in April 2011. see also Chapter 8.3. 134 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

Other Other ENERGY major major METALS Mines deposits INDUSTRIAL MINERALS Mines deposits RESOURCES On stream

Ferrous metals (Cr, Fe, Mn, Ti, V) Carbonates (dolomite, Oil and/or gas fields Novaya Zemlya calcium carbonate) Base metals (Co, Cu, Ni, Pb, Zn) Phosphates (apatite) Coal

Precious metals (Ag, Au, Pd, Pt) Quartz, quartzite IMPORTANT TOWN/PORT: Vadsø/Kemi Special metals (inkl. Be, Mo, Nb, REE) Diamond RAILWAY LINE: Other important industrial minerals

Vorkuta Salekhard ●

Hammerfest Kolguev Vadsø NENETS Alta ● Tromsø Kirkenes ● FINNMARK ● Nar'yan Mar ● ● Karasjok ● TROMS Nikel Murmansk ● ●Narvik

LAPLAND ●Kiruna Bodø● Apatity ● MURMANSK

NORDLAND ● Kandalaksha Mo i Rana ● NORRBOTTEN Rovaniemi ● ● Mosjøen KOMI ● Kuusamo

● ● Luleå Kemi Arkangel'sk Oulu ● ● !Skellefteå OULU VÄSTERBOTTEN Kajaani ● Umeå ARKHANGELSK Östersund ● Syktyvkar ● KARELIA ● Vaasa ● Karelia Härnosand Kuopio ● ● Joensuu Kotlas ● Jyvaskyla ● Petrozavodsk Kudymkar ● ● Mikkeli ●

Falun Gävle Hameenlinna ● ● ● Kouvola ● Vyatka Turku ● Mariehamn ● Uppsala Helsinki ● Västerås● ■ St Petersburg Vologda Örebro ● ● ● Stockholm ● Izevsk ■ ● Figure 13.7 Mineral deposits and transport logistics in the Barents region.

The Government welcomes the cooperation where there is a potential for the discovery and between mineral companies and indigenous peo- development of new deposits. ples’ organisations on issues relating to the extrac- The geological region known as the Fen- tion of minerals. noscandian or Baltic Shield, which consists of the Strong economic growth in the BRIC coun- northern parts of Norway, Sweden, Finland and tries9, and particularly in China, is an important western Russia, is home to rich deposits of iron driving force behind the increased demand for ore, base metals (copper, zinc, lead, tin and alu- minerals. China is the destination for close to two- minium), industrial minerals, precious metals and thirds of the world’s total exports of iron ore and special metals including rare earths. In many accounts for 60 % of global pig iron production. parts of the Barents region transport represents a Chinese consumption and demand are therefore bottleneck in the efficient exploitation of the vital for the further development of this industry. resources. The coast is an important advantage Moreover, China accounts for approximately 40 % for the mining industry in Norway as it affords of the global demand for copper, aluminium, zinc easy access to deep ice-free ports. Our geographi- and nickel (sources: US Geological Survey, UN cal location means that Swedish and Finnish min- Conference on Trade and Development, World erals can also be transported to markets via Nor- Bureau of Metal Statistics). way. Narvik, with its rail connection to Kiruna, is Europe consumes 20 % of the world’s ores and an important transhipment port for iron ore from minerals, but produces only 3–4 %.10 The Barents Sweden. region is one of the very few areas in Europe Rising activity in the mineral and mining industry makes it essential to have satisfactory 9 Brazil, Russia, India and China. transport solutions so that larger volumes can 10 Source: Geological Survey of Norway be transported to the markets. The Swedish 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 135 The High North

Box 13.2 Barents 2020: Professorship in ore geology/ mineral resources Through the Barents 2020 scheme, the Minis- try of Foreign Affairs has provided funding for the establishment of a professorship in ore geology/mineral resources at the University of Tromsø. A PhD position is also to be estab- lished. Norwegian educational institutions are Figure 13.8 Mining iron ore, Sydvaranger Gruve currently not producing specialists with suffi- AS. cient expertise in the fields of bedrock and Photo: Bente Geving resource geology, with the result that the min- ing and prospecting industry lacks well quali- fied Norwegian candidates. The establishment of the professorship at the University of mining company LKAB plans to increase its pro- Tromsø will go some way to meeting the need duction of iron ore in Sweden substantially. Two to educate experts in the field. The aim is also other companies are also planning to extract ore to generate increased knowledge of mineral in Sweden and transport it via the Ofoten iron resources in Norway for the purpose of devel- ore railway line and the port of Narvik. The oping mineral-based industries within a sus- capacity of the Ofoten Line is under pressure tainable framework. The new professorship and the volume of goods transported along this will create a hub for expertise and teaching in line is already higher than along any other ore geology/mineral resources that will also stretch of railway in Norway. In addition, the be of benefit to other educational and research port needs to be developed to take account of institutions, the public administration and the increase in activity. Sweden is planning to industry. Funding provided under the Barents build several new passing loops. If current trans- 2020 scheme will also be used to promote the port forecasts prove accurate, there may be a development of arenas for cooperation with need to construct a double-track line. In the Norwegian and international research groups short term, more passing opportunities must be working in fields related to the High North. provided. The Government is following develop- The establishment of the professorship is ments and is engaged in dialogue with the Nor- therefore expected to lead to increased coop- wegian National Rail Administration and Port of eration with Nordic and Russian research Narvik. Other rail solutions may also be consid- groups. ered, depending on developments in production, market factors and political priorities in Finland and Sweden. An assessment of transport needs for the High North will be included in the next logy/mineral resources at the University of national transport plan, which will be submitted Tromsø. to the Storting in spring 2013. The Government To date, there has been no comprehensive sur- considers it important to play a part in gene- vey of the seabed to identify mineral resources rating necessary knowledge, highlighting alter- that could be extracted in the future. In order to native options and bringing business and other facilitate mineral extraction from the seabed, the relevant actors together to discuss the various Government will consider whether there is a need alternatives. to update the legislation in this area, in connection Innovation and research are crucial for parts with the preparation of the strategy for the mine- of the mineral industry. A considerable ability to ral industry. innovate is needed to be able to meet customers’ The Government is seeking to strengthen demands for tailor-made products. In order to Nordic cooperation in the mineral sector. It has strengthen Norwegian expertise in the mineral provided funding for a pilot project on the estab- sector, the Government has provided funding for lishment of a Nordic knowledge centre for the the establishment of a professorship in ore geo- mineral sector, in cooperation with the SINTEF 136 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

Box 13.3 Barents 2020: The GeoNor report and a new Nordic knowledge centre for the mineral sector The review of industrial value creation based on 2) The establishment of a Nordic centre for geological resources in the High North the extraction and processing of mineral (GeoNor) was a joint project involving the partici- resources. pation of researchers from the Northern 3) The development of regional/local indus- Research Institute (Norut) in Narvik and Alta, trial development projects, based on five SINTEF Group (Tromsø), the Geological Survey industry cases described in the report. of Norway (NGU), the Norwegian University of Science and Technology (NTNU) and the SIN- The Research Council of Norway has begun to TEF Group (Trondheim). The project was estab- assess whether a research strategy for the min- lished at the beginning of 2010, with funding pro- eral sector should be prepared. In addition, the vided by the Ministry of Foreign Affairs under Ministry of Foreign Affairs has provided fund- the Barents 2020 scheme, the three counties of ing for a pilot project that will review the estab- North Norway, and the Executive Committee for lishment of a Nordic knowledge centre for the Northern Norway (Landsdelsutvalget). The pur- extraction and processing of mineral resources. pose of the project was to assess the resource sit- The pilot project will seek to establish coopera- uation (gas and minerals), to identify specific tion between the member countries of the Bar- industrial development opportunities and to con- ents Euro-Arctic Council and develop a concept sider the degree to which the current framework for the knowledge centre, which is intended to conditions are in keeping with the goals set out in be a driving force for competence building, the Government’s High North Strategy on knowledge exchange and research and innova- achieving balanced and viable industrial develop- tion in the field. The centre will generate knowl- ment in the High North. The GeoNor report con- edge that can be used in decision-making on the cluded by recommending the following: establishment of new industrial activities 1) The preparation of a research and innova- designed to make use of mineral resources from tion strategy for the sustainable exploita- the Barents region. tion of mineral resources in Norway (Mineral 21)

Group and other Norwegian and Nordic knowl- tions in Svalbard are set out in the most recent edge institutions. The project is a follow-up to the white paper on Svalbard (Report No. 22 (2008– recommendations set out in a review of industrial 2009) to the Storting). If the Government appro- value creation based on geological resources in ves the opening of a new mine at Lunckefjell, the the High North (GeoNor), which was drawn up matter will be submitted to the Storting. under the auspices of the SINTEF Group and the Northern Research Institute (Norut), and was partly funded through the Barents 2020 scheme. 13.6 Space-related activity Norwegian mining operations in Svalbard are largely confined to Svea, where the Store Norske North Norway, Svalbard and the sea areas in the Spitsbergen Kulkompani AS produced 1.9 million High North are ideally placed to make use of data tonnes of coal in 2010. The company has plans for from polar orbiting satellites for practical, indus- new coal mining projects in other areas to replace trial or research purposes. Satellites in polar orbit current activity at the Svea Nord mine. The most provide the most accurate information about the realistic project is the opening of a new coal mine Earth. They also provide better coverage near the at Lunckefjell to the north of the Svea Nord mine. poles than near the equator. Ground stations in In accordance with the Svalbard Environmental the High North are therefore best placed to Protection Act, the company has submitted an receive data collected by these satellites. In addi- application to the Governor of Svalbard for per- tion, the vast sea areas and lack of other infra- mission to open a coal mine at Lunckefjell. The structure in the region mean that there is a partic- policy guidelines for Norwegian mining opera- ularly strong need for satellite data. 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 137 The High North

Figure 13.9 The Norwegian satellite (AISSat-1) is improving surveillance of maritime activities in the High North. Image: Norwegian Defence Research Establishment/NASA/Norwegian Space Centre/nyhetsgrafikk.no.

Much of Norwegian space-related activity is sites on Andøya island and in Svalbard, at the EIS- carried out by government agencies, institutes CAT radar facility, the ALOMAR Observatory at and companies based in the High North. The Gov- the Andøya Rocket Range and the Kjell Henriksen ernment has taken steps to facilitate the further Observatory (formerly the Auroral Station) at development of space-related activity in the High Breinosa near Longyearbyen. North, for example through efforts to revitalise Svalbard Satellite Station (SvalSat), the large the work of the Andøya Rocket Range and partici- satellite ground station on Spitsbergen, is oper- pation in the development of the European satel- ated by Kongsberg Satellite Services. The Norwe- lite navigation system Galileo. gian Space Centre owns the fibre optic cables that The research results obtained during Interna- link Svalbard to the mainland, enabling important tional Polar Year (2007–08) show that satellite data satellite data to be distributed rapidly to custom- is particularly useful for research in the polar ers around the world and at the same time provid- regions. This is because satellites are able to col- ing other users in Svalbard with good bandwidth. lect data from vast, inaccessible areas, whatever Kongsberg Satellite Services is also the world’s the weather or light conditions. The satellites col- leading provider of oil spill detection services to lect data rapidly, often from polar orbit. The data European environmental authorities. Radar satel- can then be downloaded quickly. lites can also be used to monitor maritime traffic Space-related activity in Norway is important far out at sea. Today, maritime traffic is monitored both for meeting Norway’s national needs and in using the Automatic Identification System (AIS), terms of providing services for international cli- which transmits information to the Norwegian ents. The Government’s space-related efforts are Coastal Administration base stations on shore. particularly significant for the High North. A rela- The system transmits data about the position of tively large part of space research and space- the ship as well as its speed, course, cargo and related activity is carried out in North Norway name. But these signals are only picked up if the and in Svalbard, for example at the rocket launch vessel is less than 40 nautical miles from land. The 138 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North new satellite AISSat-1 will now make it possible to borders of the three counties of North Norway monitor all vessels far from land and around Sval- and that the region would benefit from a joint, bard. focused marketing strategy for the foreign mar- The Government’s space-related initiatives ket. In 2009, in response to this, the Ministry of have resulted in a number of contracts and assign- Local Government and Regional Development ments for Norwegian high-technology companies, provided NOK 50 million in funding for the estab- both through European Space Agency pro- lishment of Nordnorsk Reiseliv AS. The company grammes and through the commercial market. is owned by the three counties of North Norway Norway is also participating in the development of and has its head office in Alta. Nordnorsk Reise- Europe’s new satellite navigation system, Galileo, liv’s four main focus areas are natural phenomena, which is due to become operational in 2014. Once the coast and coastal culture, Sami culture and fully deployed, Galileo will consist of 30 satellites experiencing the Arctic. The establishment of and will provide better satellite coverage in the far Nordnorsk Reiseliv has provided a basis for north as well as a range of new services. The Sval- strengthening the profile of the tourism and travel Sat satellite station is currently the ground station industry and international marketing of North for several of the polar-orbiting Earth observation Norway. Developing year-round tourism, particu- satellites, including the European environmental larly winter tourism, is a challenge for the indus- satellite Envisat and the meteorological satellite try and the authorities. Various actors in the MetOp-A. SvalSat will also serve as a ground sta- region have expressed the need to make North tion for the Galileo satellite system. It is one of a Norway more accessible by improving infra- total of three Galileo ground stations on Norwe- structure and the coordination and predictability gian territory. The second is based at the Troll of public transport services. research station in Antarctica and the third is on Of the funding provided by the Ministry of Jan Mayen. These stations will enhance the reli- Trade and Industry for Innovation Norway’s ability and accuracy of the signals, both in our tourism-related efforts, NOK 15 million has been areas and globally. SvalSat will also function as an earmarked for promoting North Norway. Arctic uplink station and will transmit correction mes- Norway is one of the four key elements in Inno- sages to the satellites when necessary. vation Norway’s branding strategy for Norway as The Government has contributed to the devel- a tourist destination. Through Innovation Nor- opment of space infrastructure that is particularly way, the Ministry of Local Government and useful for the High North through Norway’s par- Regional Development has provided funding for ticipation in the Galileo programme and the a project on tourism in the High North, which launch of the AISSat-1 satellite. The Government seeks to strengthen innovation, competitiveness intends to continue its efforts to strengthen space- and profitability in tourism companies in North related activity in the High North. Norway. Tourism in Svalbard is based on the unspoilt natural environment. There is potential for further 13.7 Tourism growth in this area, particularly outside the high season. The Government intends to promote tour- Tourism is important for business development in ism in Svalbard and has an overriding goal to North Norway and is a priority area in the Gov- ensure that Svalbard is one of the world's best ernment’s High North policy. The primary managed wilderness areas and the best preserved responsibility for ensuring that the industry devel- Arctic tourist destination in the world. The ambi- ops in such a way that it provides high-quality tious environmental targets and the environmen- products and experiences lies, however, with the tal legislation that have been developed for Sval- relevant actors in the region. Funding has been bard will provide a framework for the develop- provided for a research and competence-building ment of tourism. In addition, the Governor of Sval- project in Arctic tourism at Finnmark University bard is drawing up management plans for the pro- College through the Ministry of Foreign Affairs’ tected areas in Svalbard, which cover 65 % of Barents 2020 grant scheme. Svalbard’s land area and 86 % of its territorial The Ministry of Trade and Industry is cur- waters. The plans will be an important tool for rently updating the Government’s 2007 tourism managing the development of different forms of strategy, which gives special mention to the High transport and weighing up different user interests North and the Sami areas. The strategy states that in accordance with the purpose of protection. there is a need for greater coordination across the Tourism developments in Svalbard must adhere 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 139 The High North

Figure 13.10 One of the Hurtigruten ships. Photo: Innovation Norway to strict safety and environmental standards. As 13.8 Arctic agriculture and reindeer discussed in the most recent white paper on Sval- husbandry bard (Report No. 22 (2008–2009) to the Storting), the Government will take steps to facilitate the fur- Agriculture occupies a central place in the High ther development of tourism as one of Svalbard’s North policy because it plays an important role in main industries. This development must not take maintaining a dispersed settlement pattern, in sus- place at the expense of the natural environment tainable use of natural resources and in maintain- and the archipelago’s cultural heritage. ing the cultural landscape. Agriculture and its Tourism is also a key component of our coop- related value chain generate a large number of eration with neighbouring countries. A separate jobs and a significant local food production sector. working group for tourism has been set up under New products and services, including nature- the Russian Governmental Commission on Eco- based tourism opportunities, can be developed on nomic, Industrial and Scientific-Technical Cooper- the basis of agricultural and food production. It is ation. The working group meets regularly to dis- important to ensure the development of a coher- cuss tourism development in the High North. ent policy for Arctic food production and to Tourism has also been identified as an area of spe- increase coordination between blue-collar and cial interest for the Northern Dimension Partner- green-collar primary industries in the region. New ship on Culture. knowledge gained from research activities is The value creation programme for combined needed if we are to be able to exploit the potential business activities and Sami tourism was estab- of Arctic agriculture. lished in 2008. The Sami Parliament (Sámediggi) Ensuring that agriculture remains decentral- is responsible for administering the programme. ised across the whole of North Norway is impor- The aim of the programme is to increase value tant for maintaining settlement patterns. Agricul- creation by focusing on and developing innovative ture also has a key role to play in preserving the combinations of business activities and Sami tour- cultures and traditions of indigenous peoples. The ism. In the period 2009–11, NOK 8.5 million a year Government considers it important to strengthen was allocated to the programme. and further develop Arctic agriculture and will 140 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

Figure 13.11 Every year, reindeer are transported by boat from the mainland to summer pastures on the islands and outer districts of northern Troms and Finnmark. Photo: Per Oscar Skjellnan, ©Reindriftsforvaltningen

facilitate increased value creation by promoting events and drought. This is having a noticeable agricultural production that is suited to the natural impact on agriculture in a number of parts of the conditions in the region, while ensuring that biodi- world. In many areas agricultural production may versity and ecosystems are maintained. decline, while in others, changes in temperature The long hours of daylight and low tempera- and precipitation may have positive effects on tures in North Norway produce very unusual agriculture. In Norway there are strong indica- growing conditions that have a noticeable impact tions that a moderate rise in temperature will on agricultural products. There is also growing lengthen the growing season and will make it pos- interest in food products that are regional speciali- sible to increase agricultural and forestry produc- ties. These factors combined mean that there is tion. Climate change could therefore result in new considerable potential for growth in food produc- opportunities for agriculture in the High North. tion in North Norway. The Government considers it important to Research on the adaptation of plant production develop agricultural cooperation across national in North Norway to a changing climate is essen- borders in the High North. The joint declaration tial to ensure that agriculture in the region is com- on enhanced Norwegian-Russian cross-border petitive. It is crucial in this context to strengthen cooperation of 2010 identifies plant breeding, fod- knowledge production and ensure that new der production, the development of elite seeds knowledge continues to be generated in the from Nordic plant varieties and the development region. Efforts to exploit new business opportuni- of reindeer husbandry as particularly interesting ties should be designed to promote coordination areas of cooperation in the field of agriculture. between blue-collar and green-collar primary Reindeer husbandry is one of the few livestock industries in the region. industries in Norway that makes year-round use Climate change is creating unstable weather of grazing areas. The nomadic nature of reindeer patterns and more frequent extreme weather herding, involving migration between seasonal 2011–2012 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 141 The High North pastures, helps to ensure efficient use of grazing Sami language, as well as Sami crafts and tradi- resources in the mountains and uncultivated land tional knowledge. The sustainability of the rein- elsewhere. The reindeer’s diet, which consists pri- deer husbandry industry depends both on factors marily of wild plants, makes reindeer meat a tasty within the industry and on external factors. and exclusive addition to food variety in Norway. Ensuring access to sufficient grazing areas and Reindeer husbandry is concentrated largely in adapting the size of reindeer herds to the available Finnmark. In some local communities in the Sami resources will promote ecological sustainability areas, reindeer husbandry plays a crucial role and are essential for ensuring that reindeer hus- both culturally and in terms of employment. It pro- bandry is also both economically and culturally vides an arena for maintaining and developing the sustainable. 142 Meld. St. 7 (2011–2012) Report to the Storting (white paper) 2011–2012 The High North

14 Economic and administrative consequences

The purpose of this white paper is to give an over- gian diplomatic and consular missions in the Arc- view of developments in the High North since the tic states and other key countries also allocate previous white paper on Norway’s High North resources to promoting Norway’s High North pol- policy, Opportunities and Challenges in the North icy. This white paper will not lead to any changes (Report No. 30 (2004–2005) to the Storting). in the administrative procedures for dealing with The implementation of changes in policy and matters relating to the High North at the Ministry of measures discussed in the white paper will be of Foreign Affairs or the diplomatic and consular considered at a later stage, in connection with the missions. annual budget proposals. The Ministry of Foreign Affairs is responsible for coordinating the Government’s High North The Ministry of Foreign Affairs policy and for giving an account of the Govern- recommends: ment’s overall efforts in the High North in its annual budget proposals. Matters relating to the that the recommendation from the Ministry of Arctic and the High North are dealt with in vari- the Foreign Affairs concerning the High North ous parts of the Ministry. The Section for the dated 18 November 2011 should be submitted to High North Project, Polar Affairs, Energy and the Storting. Resources has the main responsibility for working on and coordinating these matters. The Norwe- Meld. St. 7 (2011–2012) Report to the Storting (white paper) (white Storting the to Report (2011–2012) 7 St. Meld. Meld. St. 7 (2011–2012) Report to the Storting (white paper)

Published by: Norwegian Ministry of Foreign Affairs The High North

Internet address: www.government.no Visions and strategies

Cover photo: Norwegian Military Geographic Service

Printed by: 07 Xpress AS 08/2012 The High North