Sustainable Development in Greenland: Perspectives from a preliminary stakeholder consultation
Summary
The report examines Greenland's approach to sustainable development amidst rising international interest in its petroleum, minerals, and rare earth resources. While it praises the adoption of 'best-in-class' environmental and social impact assessments, it warns of gaps in emergency preparedness, dispute resolution, and the potential for a 'two-tier wage system' for migrant workers. The authors argue that Greenland must diversify its economy beyond extractives and improve its capacity to negotiate with powerful global investors to avoid the 'natural resource curse'.
Key insights
- Greenland has implemented high-standard environmental and social safeguards by adopting international best practices from regions such as Canada, Norway, Australia, and the European Union, requiring full-scale environmental impact assessments (EIAs) and strategic social impact assessments (SSIAs) before exploitation licenses are negotiated.
- The Greenlandic model for Impact Benefit Agreements (IBAs) differs from those in Canada and Australia by functioning as formal contracts between the investor, municipalities, and the national government, thereby moving these agreements from private contractual law into the realm of public law.
- Revisions to the Building and Construction of Large Scale Projects Act in early 2013 created a risk of a two-tier wage system because provisions for non-fixed minimum hourly wages for foreign collective bargaining agreements were omitted, potentially allowing foreign workers to be paid less than Greenlandic workers.
- There is a critical lack of contingency planning for industrial emergencies and social sustainability disputes, which poses a significant risk to Greenland's sensitive Arctic ecosystem and population.
- Greenland faces a risk of the 'natural resource curse' if investors are allowed to use 'resource for infrastructure' deals to diminish payments on taxes, rents, and royalties, especially since the government currently lacks the capital and expertise for public-private partnerships.
- The report identifies a lack of evidence regarding investment incentives and business linkage facilitation for non-extractive industries, such as tourism, hydropower, sustainable fisheries, and Arctic research and development, recommending a more diversified industrial strategy.
Cite the original document
- APA
- Colclough, C., & Perera, O. (2013). Sustainable Development in Greenland: Perspectives from a preliminary stakeholder consultation. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/greenland_sustainable_development.pdf
- Chicago
- Colclough, Christina, and Oshani Perera. Sustainable Development in Greenland: Perspectives from a preliminary stakeholder consultation. International Institute for Sustainable Development, 2013. https://www.iisd.org/system/files/publications/greenland_sustainable_development.pdf.
- Wikipedia
- {{cite report |last1=Colclough |first1=Christina |last2=Perera |first2=Oshani |title=Sustainable Development in Greenland: Perspectives from a preliminary stakeholder consultation |publisher=International Institute for Sustainable Development |date=December 2013 |url=https://www.iisd.org/system/files/publications/greenland_sustainable_development.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{colclough2013sustainable, author = {Colclough, Christina and Perera, Oshani}, title = {{Sustainable Development in Greenland: Perspectives from a preliminary stakeholder consultation}}, institution = {International Institute for Sustainable Development}, year = {2013}, month = dec, url = {https://www.iisd.org/system/files/publications/greenland_sustainable_development.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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