Connecting the blue economy to the Arctic and Antarctic oceans

I recently had the privilege of visiting the Antarctic when I joined an expedition group with other curious folks from all over the world alongside a team of glaciologists and marine biologists. As a scuba diver and marine biologist myself, I felt excited about the voyage. As a corporate professional focused on ESG, nature and decarbonization services, as well as the blue economy,  I looked forward to gathering first-hand information that would help drive and contextualize this work.

The expedition team I was with visits the region regularly, evaluating the snow and ice and their physical properties. They observe, analyze, measure, compare, and report back. Us regular folks visited the southern continent this one time, (or, at least the first time) to ooh and aah. The sheer size of glaciers and ice shelves astonished us. Our jaws dropped at the substantial number and sizes of whales and marine mammals that live there, along with the icebergs and glaciers. And watching penguins behave in their natural habitat thrilled us all.

Ocean warming driven by climate change is a primary driver of ice melt. In Antarctica, warmer ocean water can undercut the base of an ice shelf, causing it to destabilize and calve (that is, shed massive chunks of ice). The collapse or release of an ice shelf can lead to more rapid discharge of continental ice, which contributes to increased sea level posing dangers related to flooding, coastal erosion, saltwater intrusion that contaminates drinking supplies, and loss of coastal ecosystems. Because they are in contact with the atmosphere above and the ocean below, ice shelves are the most vulnerable component of the Antarctic cryosphere to environmental change.²

In parallel, the Arctic had its warmest summer on record last year, continuing a 17-year trend of consistent sea ice melting.

These new sea lanes can bring significant cost savings to shipping companies, boost maritime trade and stimulate economic activity in the region. In fact, the number of unique ships entering the Arctic Polar Code area⁶ from 2013 to 2023 increased by 37%, around 500 ships . Fishing vessels and general cargo ships⁷ represent the majority of this increased traffic.

As Arctic shipping increases so too does the need to collect data and monitor trends. PAME—the Protection of the Arctic Marine Environment—developed the ASTD—Arctic Ship Traffic Data—a project that “collects and distributes accurate, reliable and up-to-date information on shipping activities in the Arctic”.⁸ At the same time, Russia has activated the world’s first Arctic observation satellite system, which aims to provide continuous meteorological and environmental monitoring of the Arctic surface, including the Northern Sea Route, which runs near the Siberian coastline. As more satellites get added (up to eight), the system expects to forecast the viability of Arctic shipping routes, enhance Arctic telecommunications services for air traffic and commercial shipping, and explore hydrocarbon exploration.⁹

Vast oil and gas reserves previously trapped beneath the ice, including an estimated 30% of the world’s undiscovered natural gas and 13% of its undiscovered oil, as well as critical minerals needed for the energy transition away from fossil fuels are becoming more feasible and economical to access leading to increased interest in offshore drilling, mining, and exploration by energy companies. Regional infrastructure along the Canadian and US coastlines will be required in combination with collaboration over EEZs (exclusive economic zones) and overlapping national claims to the seabed and its resources.¹⁰ Russia is keen to expand its Arctic LNG production here, with plans for extraction and transportation drawn up. Associated environmental risks for all energy and natural resources opportunities such as oil spills and habitat destruction must be considered and properly mitigated.

As cruise tourism, wildlife watching, and adventure tourism become more accessible, local communities can enjoy economic benefits through increased tourism spending, job creation, and infrastructure development. Its environmental impact, however, will require sustainable management practices to minimize negative effects on fragile Arctic ecosystems.

Retreating sea ice presents new areas for fishing, particularly for species such as Arctic cod and shrimp. Commercial fishing operations can expand into previously inaccessible waters, potentially increasing yields and revenue for fishing communities.

New subsea data cable routes between Europe and Asia can get introduced to address growing internet traffic. Correspondingly, two projects have emerged.
(1) Far North Fiber is a joint development project aimed to deliver the first long-haul submarine fibre optic system through the Northwest Passage to connect Asia to Europe, with funding from the EU’s Connecting Europe Facility – Digital program.
(2) Polar-Connect, a Northern European initiative aimed to obtain secure and resilient connectivity through the Arctic to Asia and North America, plans to route cables under the ice cap of the North Pole. The installation of these projects could improve connectivity for underdeveloped parts of the region currently facing unreliable internet access, create necessary digital redundancy, and benefit the scientific community specifically with respect to climate research, marine biology, oceanography, seismology, and more.¹¹

Expect to see more than $1 trillion spent on infrastructure investments as a growing list of international stakeholders look to capitalize on the blue economy of the high north.¹²