Chapter 1: The Arctic's Economic Landscape

The Arctic, particularly Finland’s Inari municipality, is a focal point for EU initiatives aimed at promoting sustainable practices in a region rich in natural resources and cultural heritage.

Inari, located above the Arctic Circle, is characterized by its sparse population and reliance on tourism and cold-climate automotive testing. The E75, a prominent European route, draws visitors year-round, eager to experience its serene landscapes, positioned nearly 300 kilometers north of the Arctic Circle. In 2019, approximately half a million tourists visited this unique area, which experiences polar nights in winter and perpetual daylight in summer.

Cultural Considerations

Inari stands as the heart of Sámi culture in Finland, where reindeer herding remains a vital aspect of indigenous life. This duality presents a significant challenge: how to honor traditional practices while embracing new economic opportunities.

Pasi Rautio, a research professor at the Natural Resources Institute Finland, articulates the importance of reindeer herding as not just a livelihood but a cultural cornerstone. He leads the ArcticHubs project, funded by the EU, which seeks to navigate the competing interests surrounding the Arctic's resources. This initiative, spanning four years and concluding in July 2024, aims to ensure that external economic activities do not undermine local traditions and lifestyles.

Foreign investments, such as those from the Swedish mining company LKAB, which discovered Europe's largest rare-earth mineral deposit, pose additional threats to Sámi livelihoods. If mining proceeds, it could disrupt crucial migration paths and grazing lands essential to Sámi culture.

Local Perspectives on Resource Management

The interest in Arctic resources is not limited to Europe. China has invested over €84 billion in Arctic infrastructure, particularly in energy and minerals, further complicating the dynamics of local resource management.

While Arctic nations hold primary authority over these issues, EU and international collaboration is key, particularly given the region's vulnerability to climate change. With the Arctic warming at four times the global rate, the consequences of environmental shifts impact not just local communities but also the broader global community.

The first video titled "High stakes: the Arctic test of sustainable development" delves into how EU researchers are helping policymakers balance the region's diverse demands while preserving its unique cultural and natural wealth.

Engaging Communities in Decision-Making

For the past three years, Rautio and his team have engaged with residents across the Arctic, including Finland, Greenland, Norway, and Sweden, to gather insights for local and EU policymakers. Their objective is to ensure that any forthcoming resource exploitation licenses reflect the long-term interests of the communities involved.

Through mapping local resource needs, the researchers have identified five key sectors most impacted by Arctic development: forestry, mining, fish farming, tourism, and indigenous culture. A critical finding is that sustainable land and water use necessitates the involvement of local communities, researchers, and policymakers.

In Finland, practices are evolving to prioritize community input. For example, when foreign companies propose logging in areas where Sámi herding occurs, consultations with herders are required to ensure their livelihood is considered.

The researchers aim to inform municipal leaders and EU parliament members about the implications of resource licenses, channeling grassroots perspectives into high-level policy discussions.

Chapter 2: Towards Equitable Development

Dr. Corine Wood-Donnelly of Uppsala University echoes similar sentiments through her EU-funded JUSTNORTH project, which concluded in November 2023. This initiative explored the potential for fair outcomes amid increasing Arctic economic activities.

The second video titled "High-Stakes Arctic Race Heats Up for U.S., Russia and China | WSJ" examines the geopolitical implications of Arctic resource exploitation and the balance between development and sustainability.

Wood-Donnelly emphasizes the necessity of asking, "Whom does this benefit?" The project's collaborative approach, which included indigenous communities and local businesses, assessed the risks and rewards of Arctic economic activities.

Balancing Risks and Benefits

The findings revealed that while projects like wind farms can stimulate local economies, they may inadvertently harm traditional practices, such as reindeer grazing and tourism activities. The complexities of Arctic development require careful consideration of local needs and perspectives.

As with Rautio’s work, Wood-Donnelly asserts that sustainable progress in the Arctic hinges on community involvement in policy decisions, from large-scale energy projects to local infrastructure developments.

"Achieving just outcomes is feasible," she asserts, highlighting numerous actionable steps towards equitable development.

This research was supported by the EU’s Horizon Programme, and the views expressed by the interviewees do not necessarily represent those of the European Commission.

Originally published in Horizon, the EU Research and Innovation Magazine on April 15, 2024. Horizon articles can be freely republished under the Creative Commons Attribution 4.0 International (CC BY 4.0) license.