Greenland’s Most Valuable Natural Resource: Fish

Fish have emerged as the most valuable natural resource in Greenland, contributing an estimated 30% of the total revenue. This valuable commodity is primarily based on three key types: deep-sea prawns, Greenland halibut, and Atlantic cod, each of which plays a significant role in the local economy and export markets.

Value of the Catch

According to the statistical office in Greenland, the value of the catch was DKK 2.8 billion in 2019. This not only contributes to the income of local families but also provides essential tax revenues for the government. Fish are a major export, with sales both domestically and internationally, making them a crucial part of the country's economic sustainability.

The Three Main Contributors to Fish Value

Deep Sea Prawns

Deep-sea prawns account for 53% of the fishery value. These crustaceans are highly sought after in international markets and contribute significantly to Greenland's economy. Their value is not only monetary but also in terms of employment and export revenues.

Greenland Halibut

Greenland halibut, a delicacy in both Greenlandic and Icelandic cuisines, makes up 21% of the fishery value. However, the species currently faces the challenge of overfishing within Greenland's territorial waters. Despite this, efforts are underway to manage and conserve the population. The areas where juveniles spawn are found in the middle-sized spots on the map, while valuable adults are in the large spots.

Atlantic Cod

Atlantic cod represents 11% of the fishery value but has unfortunately seen two major overfishing episodes in the past. These incidents jeopardized the livelihoods of communities in Greenland and have left a lasting impact on the local marine ecosystem.

Other Fish Species

The remaining 15% of the fishery value comes from several other types of fish and crustaceans. The catch is critical for local communities, especially in smaller settlements where government-provided resources and services play a dominant role.

Economic Impact and Challenges

The concentration of revenue from a few types of fish raises concerns about the sustainability of the industry. This has led to issues such as overfishing and the need for international agreements, particularly for the Greenland halibut, which are found within the exclusive economic zones (EEZ) of various nations. The map of distribution shows the spawning areas of juvenile Greenland halibut in orange spots, while valuable adults are represented by large spots.

Overfishing and Climate Change

The map also highlights the territorial waters close to Greenland and the EEZ further out. The winter ice cover, shown in blue with single and double hatch patterns, significantly reduces the fishing season. Overfishing poses a serious threat, and the melting of the Arctic ice can potentially expand the fishing area in the future, especially in the North East and Baffin Bay.

Economic Dependency and Industrial Activities

Almost 50% of the workforce in Greenland is employed by the government, which acts as the main buyer of goods and services. Transport is effectively monopolized by the government-owned Royal Arctic Line (RAL) and Air Greenland, while the provision of daily goods and fuel is controlled by government-owned companies like KNI, Pilersuisoq, and Polar Oil.

Future Prospects

The value generated by mining and oil industry remains negligible, despite decades of efforts. The bureaucratic environment and the frequent changes in government policies pose significant challenges. However, the government is now aggressively promoting oil drilling and uranium mining to generate new sources of income. The melting of the Ice Cape, while it could potentially expand the fishing area, is mainly due to thinning ice rather than the appearance of new land masses.

The estimated value of known natural resources is insufficient to sustain an independent Greenlandic society for more than 30 years. The search for new sources of income beyond the current 30 years of mining and drilling will be critical for the country's long-term economic stability.

For anyone interested in understanding the economic landscape of Greenland and the challenges it faces, these insights offer a comprehensive overview of the significance of fish in the national economy.