The European Union has softened one of the most consequential parts of its Arctic energy policy, abandoning its 2021 push for a binding international ban on new Arctic hydrocarbon development even as it expands Greenland’s place in Europe’s strategic future.
The earlier policy went beyond a general call to curb fossil fuels. On page 10 of its 2021 Arctic communication, the Commission said it would work with partners toward a “multilateral legal obligation” preventing further hydrocarbon reserve development in the Arctic and adjacent regions, as well as the purchase of any hydrocarbons produced from such projects.
The newly adopted 2026 strategy still says oil, coal and gas should remain in the ground and says the EU will work with partners to prevent developments that threaten the Arctic ecosystem. It does not, however, repeat the commitment to pursue a binding multilateral prohibition or a related no-purchase commitment.
Reuters reported that an EU official attributed the change to a more difficult geopolitical environment and the sharply differing positions of Arctic actors. Norway, which has continued petroleum activity in the Barents Sea, has urged Brussels to drop its opposition to new Arctic drilling.
Asked whether the EU’s policy change alters Greenland Energy Company’s assessment of the political environment for petroleum exploration, particularly at the Jameson Land project, Larry Swets said: “EU dropping the ban is a strong signal reminder that the world still needs oil.”
The change is better understood as the removal of a diplomatic objective that had little direct legal force in Greenland, Norway, Canada or the United States. The new strategy retains the climate language but drops the mechanism that could have turned it into a shared international prohibition.
Greenland’s rules have not changed
The EU does not control petroleum licensing in Greenland. Naalakkersuisut decided in 2021 that no new oil and gas licences would be issued, citing the climate and environmental consequences of extraction. That policy remains in place.
Jameson Land is different because its licences were issued before the 2021 decision. The Greenland government says the permits remain legally valid and are currently in the exploration phase, but it has also stressed that no exploration drilling has been approved. Environmental and social-impact assessments, public consultation and further regulatory approvals are required before drilling can begin.
A larger European bet on Greenland
Brussels has acknowledged that the diplomatic world in which a binding pan-Arctic drilling ban appeared achievable in 2021 has fractured. Russia’s war, strategic competition, energy insecurity and the contest for Greenland’s infrastructure and resources are pushing the EU toward a strategy built less on global legal promises and more on resilience, sovereignty and strategic partnerships.
The Commission points to a €200 million Global Gateway Partnership Package for 2026–27, agreed with Greenland and Denmark in September. The package is intended to support sustainable raw materials, renewable energy, digital and satellite connectivity, tourism, housing, small-business finance and strategic infrastructure.
The strategy also identifies Greenland Resources’ Malmbjerg molybdenum project as a project under consideration, underlining the EU’s interest in Greenland as a potential source of critical minerals.
For Europe, the new approach is as much about reducing strategic dependencies and protecting critical infrastructure as it is about resources. The strategy calls for deeper maritime-data sharing with Greenland, a long-term preparedness and resilience partnership, expanded satellite connectivity and stronger protection for critical undersea infrastructure.
Greenland as a future digital bridge
The EU says it will support delivery of a sovereign, secure and resilient submarine cable directly linking Greenland to the European Union. It has already invested €107 million through its Connecting Europe Facility Digital programme to advance Greenlandic connectivity and the wider Pan-Arctic Cable vision, while work continues on a new cable along Greenland’s western coast.
The longer-term ambition is far larger: a route connecting Europe to Japan and South Korea via Greenland and Canada.
A direct link could improve communications for Greenlandic communities while adding redundancy to Europe’s digital networks, particularly as governments focus on the vulnerability of undersea cables to sabotage and disruption. The strategy also says the EU is helping Greenland assess data-centre opportunities and access to AI and high-performance computing services.
Oil may or may not become part of Greenland’s economic future. The EU’s broader vision, however, is clear: it sees Greenland as a future digital bridge between Europe and Asia, a critical-minerals partner and a strategic Arctic ally, while maintaining that “the future of Greenland is for its people to decide.”
GreenlandEnergy.com provides independent analysis of Greenland’s energy landscape, critical minerals development, and Arctic geopolitics. For corrections or feedback: press@greenlandenergy.com
