Copenhagen, May 27: A coalition of Nordic investors and financial institutions has urged the European Union (EU) to uphold its ban on new oil and gas drilling in the Arctic region.
More than 11 financial organizations, including Nordea Asset Management, sent a letter to the European Commission, stating that initiating new fossil fuel projects in the Arctic is neither a quick fix for the ongoing energy crisis nor a viable long-term solution for energy security.
They argue that such projects take years to develop, while Europe is currently grappling with high energy prices and supply pressures. Therefore, expanding Arctic drilling could exacerbate the existing crisis rather than alleviate it, posing further risks to the environment.
Investors have warned that oil and gas extraction in the sensitive Arctic ecosystem could lead to severe environmental damage and increase the risk of oil spills, which contradicts established global climate targets.
This appeal comes at a time when some countries are advocating for alternatives from Arctic resources amid the energy crisis. The EU is currently reviewing its Arctic policy, and no final decision has been made yet.
Nordic financial institutions and investors have reiterated their call for the EU to maintain its stance against new oil and gas drilling in the Arctic, especially as the ongoing conflict in Iran and the closure of the Strait of Hormuz have intensified pressure on energy supplies.
A spokesperson noted that the EU is reassessing its Arctic policy in light of changing geopolitical and geoeconomic conditions, but no conclusive outcomes have emerged thus far.
Nordea Asset Management stated that the Arctic is one of the planet’s most sensitive ecosystems, home to rare species. According to Reuters, the institution warned that further expansion of oil and gas could place additional stress on these delicate ecosystems, increasing the risk of spills and pollution.
Norway, Europe’s largest gas supplier but not an EU member, is pressuring Brussels to lift the ban on drilling in the Arctic. Experts suggest that due to aging oil and gas fields, Norway’s production may decline in the 2030s unless companies like Equinor explore new areas.
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