The Arctic This Week Take Five: Week of June 8, 2020

Russia Charges Mayor and Energy Company Employees for Oil Spill 

On June 10, Russia’s Investigative Committee charged the mayor of Norilsk for criminal negligence over his handling of what environmentalists have identified as the largest Arctic oil spill to date. The Investigative Committee has also detained the director of the Norilsk Taymyr Energy Company and two engineers who are suspected of breaching environmental protection rules. President Putin has been vocal at his discontent with Nornickel and has ordered the company to cover the full cost of restoring nature in the area, a cost that will likely amount to more than 10 billion rubles (Daily Sabah, Eye on the Arctic, The Globe and Mail).

Take 1: It is clear that President Putin is committed to holding Nornickel accountable for the catastrophic 21,000 tons oil spill. In addition to being openly discredited by the federal authorities, President Putin has expressed strong criticism against the company and its leader. Many species unique to this region of Siberia are now facing extinction; however, there is hope that the spill will inspire modern reforms by way of more stringent environmental protection laws and increased selectivity in awarding licenses for oil operations in the Arctic.

Norwegian Supreme Court to Decide in Case Against Arctic Oil 

After repeated court appearances by several Norwegian environmental organizations to stop oil drilling in the Barents Sea, a breakthrough has been made: the case is being recognized by Norway’s Supreme Court. The case hearings will start on November 4, 2020 and proceed for seven full days to be heard by all 19 judges of the Court. The stance taken by Norwegian environmental organizations is that Arctic drilling projects endanger citizens’ rights for a secure climate and are fundamentally against the country’s constitution (Barents Observer, Greenpeace).

Take 2: Whatever the verdict may be, the case presented by Norwegian environmentalists is historic and will surely set precedent for future government sanctioned oil projects in the Arctic region. Norway is in a position many governments are facing or likely soon will face, wherein citizens are calling for a federal-level divestment from the oil industry, despite the country’s rich history in the sector.

Authorities Warn More Oil Reservoirs Could Collapse

The Russian Environmental Control Authority has requested Nornickel to close its remaining reservoirs in Norilsk after the collapsed tank last week led to a 21,000 tons oil spill. The Control Authority is urging Nornickel to pump all the diesel fuel out of the reservoirs and carefully study the technical condition of the facilities, warning that if caution is not exercised now, another spill is possible (The Daily Star).

Take 3: Part of recovering from a national-level state of emergency is through a rigorous post-mortem that will ensure the same mistake is not made twice. For now, experts hypothesize it is the rapidly melting permafrost under the reservoir that caused the spill. This means that other reservoirs in the region are vulnerable. To avoid further destruction of the ecosystem and protect local health, oil structures built on permafrost should be re-evaluated.

Norway Invests in More Oil as it Faces Economic Crisis

The Norwegian Parliament has decided to fund a generous support-package for the country’s oil industry to aid its suffering economy. The Norwegian Finance Ministry estimates that including subsequent returns, the value of the package is as large as 39 billion NOK. Experts predict the 4% drop in national GDP in 2020 will have lasting effects on the Norwegian economy due to decreased international demand and low global oil prices (Barents Observer).

Take 4: While the support package is backed by both the Labour, Center Party and the Progress Party, many still remain critical. Those who oppose the aid argue that Norway should invest in green and climate-friendly industries as suggested by the UN Secretary General. Ideally, countries would target their coronavirus crisis packages to phase out fossil subsidies and fund clean energy initiatives. Norway is an important stakeholder in the Arctic energy landscape, so this decision will impact the actions of others in the circumpolar energy scene.

Arctic Region Works Together as Economies Re-Open 

As COVID-19 cases have decreased in many areas around the Arctic, governments have begun to re-open the economy. Foreign ministers in Iceland, Greenland, and Canada, among other countries, are collaborating to discuss the appropriate preventative measures moving forward. Since the Arctic region relies heavily on the income from tourists, Iceland and Greenland have implemented COVID-19 testing for travellers in hopes of reinvigorating the struggling tourism industry (CBC, Eye on the Arctic, Eye on the Arctic).

Take 5: It is important that Arctic nations collaborate and support one another as they enter the next phase of responding to a global pandemic. For example, Iceland has decided to test all international travellers for COVID-19 as an alternative to a mandatory two-week quarantine period. If successful, this can be a strategy implemented by other countries to encourage tourism in the North.