The Arctic This Week Take Five: Week of March 2, 2020
Wells Fargo is the 3rd Major U.S. Bank to End Arctic Oil Investment
Wells Fargo now joins Goldman Sachs and JPMorgan Chase to become the third major U.S. bank to announce it will not be providing future investments for oil and gas projects in the Arctic. While Wells Fargo will continue ongoing business with numerous companies involved in the oil and gas industry in the Alaskan region, they will not be investing in the Arctic National Wildlife Refuge on Alaska’s North Slope, an area the Trump administration is taking steps to open for drilling (CBC).
Take 1: The decision of these three major banks to halt future investments into oil exploration in Alaska presents an interesting obstacle for the state’s oil-dependent economy. If other investors follow suit, the resilience of Alaska’s economy will be tested. Ultimately, this news is welcomed by both environmental groups and the locals, as it curbs fossil fuel investments and respects land that is sacred to many First Nations.
Shrinking Arctic Ice Slows Fish Breeding Rates
The polar cod is a food source for many species under the Arctic ice. Due to the effects of climate change, namely decreased ice cover, declines are being observed in the polar cod reproduction rates. The study by the Institute of Marine Research (IMR) in Norway projects that the Barents Sea will become warmer and virtually ice-free as early as 2030. This can lead to a complete collapse of the polar cod and any species that depend on it in this food chain (Eco-Business).
Take 2: The impact of climate change on lower levels of food chains in the Arctic will undeniably cascade to impact other organisms. Since food chains aren’t fully understood by researchers yet, it is difficult to predict the extent to which organisms will be impacted by the altered breeding cycles of polar cod and other vulnerable species. In an ideal world, human activities that are contributing to the decreased ice coverage would be avoided, but in reality dangerous feedback loops suggest the opposite will happen. In particular, increased ice melt makes the Arctic region more accessible for shipping companies, only further disturbing the Arctic ecosystem.
Chasing Investors to Establish Massive Data Center in Nordland
In 2018, entrepreneur Danny Hayes and his team presented an ambitious plan to build data centers and smart city solutions in Bodø, Nordland. The project, while initially met with a lot of enthusiasm, did not come to fruition after the multinational tech company AECOM withdrew. Now, former partners, including AECOM, are seeking investors to revive the hopes of a massive data center, without Hayes (High North News).
Take 3: The story of American investors entering the Norwegian landscape was all over local and national media in 2018, especially after Hayes’ Innovation Speech promised billions to the city. Given that the previous attempt ended with strong accusations of lies, fraud, and threats of lawsuits, investors are being more cautious the second time around. A data centre at the scale that is currently being discussed can create jobs for many in the community and boost the local economy.
Aid is on Its Way to Struggling Icebreaker Near North Pole
After reaching the site of the MOSAiC expedition, the Russian icebreaker Kapitan Dranitsyn now requires assistance to return to the mainland. Due to unexpected weather conditions, the Kapitan Dranitsyn has consumed far more fuel than initially anticipated. On board the Russian ship are researchers and crew that will be replacing the current inhabitants of the Polarstern, who have resided in the desolate Arctic ice since mid-December 2019 in order to develop a comprehensive understanding of the Arctic ecosystem year round (Barents Observer).
Take 4: The MOSAiC expedition has been meticulously planned for several years, but complications were inevitable given the unpredictable Arctic weather. MOSAiC is the most thorough Arctic expedition to date with a budget of more than €140 million. MOSAiC will allow researchers to develop a deeper understanding of the Arctic ecosystem and its influence on the global climate system.
Reconciliation Plays a Big Role at Arctic Winter Games 2020
Reconciliation will be an overarching theme at the 50th anniversary of the Arctic Winter Games from March 15-21 in Whitehorse, Canada. The Host Society will be recognizing Yukon First Nation languages, culture, and traditions at the event by featuring Indigenous performers, as well as a ceremonious gifting of three button blankets (EOTA).
Take 5: While more of a symbolic gesture in this scenario, reconciliation is gaining much-needed momentum in the Arctic. The explicit recognition of the importance of reconciliation by the Host Society and its subsequent integration into the event will hopefully carry-over to other Arctic-based events.