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Sustainable Business Development in the Nordic Arctic

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Sustainable Business Development in the Nordic Arctic Sustainable Business Development in the Nordic Arctic Lise Smed Olsen, Anna Berlina, Leneisja Jungsberg, Nelli Mikkola, Johanna Roto, Rasmus Ole Rasmussen, Anna Karlsdottìr NORDREGIO WORKING PAPER 2016:1 Sustainable Business Development in the Nordic Arctic Sustainable Business Development in the Nordic Arctic Lise Smed Olsen, Anna Berlina, Leneisja Jungsberg, Nelli Mikkola, Johanna Roto, Rasmus Ole Rasmussen, Anna Karlsdottìr Sustainable Business Development in the Nordic Arctic Nordregio Working Paper 2016:1 ISBN 978-91-87295-35-5 ISSN 1403-2511 © Nordregio 2016 and the authors Nordregio P.O. Box 1658 SE-111 86 Stockholm, Sweden [email protected] www.nordregio.se www.norden.org Editors:Lise Smed Olsen, Anna Berlina Maps: Johanna Roto and Linus Rispling Cover photo: Rasmus Ole Rasmussen (Svalbard) Nordic co-operation Nordic co-operation is one of the world’s most extensive forms of regional collaboration, involving Denmark, Finland, Iceland, Norway, Sweden, and the Faroe Islands, Greenland, and Åland. Nordic co-operation has fi rm traditions in politics, the economy, and culture. It plays an important role in European and inter- national collaboration, and aims at creating a strong Nordic community in a strong Europe. Nordic co-operation seeks to safeguard Nordic and regional interests and principles in the global community. Common Nordic values help the region solidify its position as one of the world’s most innovative and competitive. The Nordic Council is a forum for co-operation between the Nordic parliaments and governments. The Council consists of 87 parliamentarians from the Nordic countries. The Nordic Council takes policy initiatives and monitors Nordic co-operation. Founded in 1952. The Nordic Council of Ministers is a forum of co-operation between the Nordic governments. The Nordic Council of Ministers implements Nordic co-operation. The prime ministers have the overall responsibility. Its activities are co-ordinated by the Nordic ministers for co-operation, the Nordic Committee for co-operation and portfolio ministers. Founded in 1971. Nordregio – Nordic Centre for Spatial Development conducts strategic research in the fi elds of planning and regional policy. Nordregio is active in research and dissemina- tion and provides policy relevant knowledge, particularly with a Nordic and European comparative perspective. Nordregio was established in 1997 by the Nordic Council of Ministers, and is built on over 40 years of collaboration. Stockholm, Sweden, 2016 Table of Contents Preface .............................................................................................................................................................................. 8 1 Introduction ................................................................................................................................................................. 9 2 Employment in the Nordic Arctic ........................................................................................................................ 11 3 Large-Scale Industries ........................................................................................................................................... 14 3.1 Key drivers of new large-scale projects ................................................................................................................ 14 3.2 Ongoing and potential industrial activities in the Nordic Arctic .............................................................................. 15 3.2.1 Mineral mines and deposits in the Nordic Arctic......................................................................................... 15 3.2.2 Industrial mineral mines and deposits ........................................................................................................ 15 3.2.3 Oil and gas blocks in the Nordic Arctic ....................................................................................................... 17 3.3 Impact assessments of large-scale industries ...................................................................................................... 17 3.3.1 Environmental impact assessment............................................................................................................. 17 3.3.2 Social impact assessment .......................................................................................................................... 19 3.3.3 Strategic environmental impact assessment .............................................................................................. 19 3.3.4 Socio-economic involvement...................................................................................................................... 20 3.4 Connecting a local labour market to large-scale industries................................................................................... 21 3.4.1 Indirect employment opportunities ............................................................................................................. 21 3.4.2 The role of industry clusters ....................................................................................................................... 22 3.4.3 Transnational and cross-border co-operation ............................................................................................ 22 3.5 The global market’s connection to large-scale industries ..................................................................................... 23 3.6 Large-scale industries and sustainable regional development ............................................................................. 24 4 Bioeconomy .............................................................................................................................................................. 25 4.1 What is a bioeconomy? ......................................................................................................................................... 25 4.1.1 Sustainability of the bioeconomy ................................................................................................................ 26 4.1.2 Policy support for the bioeconomy in the Nordic countries ........................................................................ 27 4.2 Bioeconomy in the Nordic Arctic: current status and future potential .................................................................... 27 4.3 Blue bioeconomy................................................................................................................................................... 27 4.3.1 Fisheries ..................................................................................................................................................... 27 4.3.2 Aquaculture ................................................................................................................................................ 29 4.3.3 Seaweed .................................................................................................................................................... 29 4.3.4 Biotechnology related to marine products .................................................................................................. 29 4.4 Land-based bioeconomy ....................................................................................................................................... 30 4.4.1 Forestry ...................................................................................................................................................... 30 4.4.2 Bioenergy production ................................................................................................................................. 31 4.4.3 Biofuels....................................................................................................................................................... 33 4.4.4 Biorefi neries ............................................................................................................................................... 35 4.4.5 Agriculture .................................................................................................................................................. 36 4.4.6 Reindeer husbandry ................................................................................................................................... 37 4.5 Future opportunities and challenges in the bioeconomy ....................................................................................... 39 4.5.1 Labour-market effects ................................................................................................................................ 39 4.5.2 Increasing local processing ........................................................................................................................ 40 4.5.3 New bio-based businesses ........................................................................................................................ 40 4.5.4 The role of cross-border collaboration........................................................................................................ 41 4.5.5 Political support .......................................................................................................................................... 41 4.6 Bioeconomy in the Nordic Arctic and sustainable regional development .............................................................. 41 5 Tourism ......................................................................................................................................................................
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