Ladies and gentlemen,

It gives me great pleasure to be here today at this important event at the 2015 Arctic Energy Summit.

I remember well our meeting two years ago when the Arctic Energy Summit took place in Akureyri, in the north of Iceland, and I am delighted to be attending this Summit here and meet many of you again.

To begin with, I would like to express my gratitude to the Institute of the North for organizing this Summit in such a beautiful and appropriate setting here in Fairbanks.

Over the next couple of days, we will be discussing various Arctic Energy issues, - a topic which is both relevant and timely.

Building on the experience from the Summit in Akureyri, which generated interactive and meaningful engagement and cross-sectorial communication among participants, this summit will undoubtedly provide us with more tools and information to help us take meaningful steps to meet the many challenges we share.

Improved understanding of the Arctic helps governments to identify problems and makes us better able to implement solutions aimed at supporting strong and sustainable communities in the Arctic.

Previous discussions and studies have brought our attention to the many urgent issues facing the Arctic today and how many of the challenges can be addressed only through co-operation at regional, national and international levels – for instance, within the Arctic Council.

The government of Iceland places strong emphasis on the Arctic Council as the premier forum for Arctic cooperation. I am pleased that the Arctic Energy Summit is co-led, by the US and Iceland, within the Sustainable Development Working Group of the Arctic Council and that the outcomes of the Summit will be presented to that Working Group and the Arctic Council.

Ladies and gentlemen,

The climate change in the Arctic is affecting communities both in the Arctic and beyond. At the recent GLACIER conference here in Alaska earlier this month, the Arctic States recognized their leadership role in providing sustainable development and cooperation in the Arctic, and reaffirmed their commitment to take action to slow the pace of warming in the Arctic.

We must cooperate to revert this development, starting in Paris in December, where we hope to agree on an ambitious long-term climate agreement.

The theme of this morning discussion is ‘Security and Affordability for a Resilient North'. Energy security and sustainable energy utilization are fundamental issues within this theme and I would like to bring my focus to these topics.

The Arctic has historically been rich in renewable and non-renewable energy. I believe that the Arctic could and should be a region which other countries look to regarding clean energy and development.

In this context Iceland can contribute. We speak from first-hand experience, as we have been fortunate enough to utilize geothermal energy and hydro power in a sustainable manner for decades. Today, renewable energy is one of the main pillars of our economy as well as of our everyday life.

When looking at the Arctic there are mainly three economically viable options for renewable energy generation: Hydro power, geothermal energy and wind power.

I mention this to put emphasis on the vast possibilities various Arctic countries possess within these 3 categories. A good example is the geothermal energy potentials right here in Alaska, with your more than 70 active volcanoes. Also the hydropower possibilities in Greenland. I could go on; wind farms, off-shore and on-shore, new technologies. The opportunities are there, and we should embrace them with a focus on best practices and respect for the environment.

In this regard, like I mentioned, Iceland can contribute with it's experience and knowledge of 75% electricity generation from hydro power, 25% from geothermal energy and 99% of house heating generated from geothermal energy and hydro power.

However, renewable energy utilization is not the only item we need to put focus on. Community planning is for example important to facilitate distribution of energy in an economical manner. Some of the communities in the Arctic have limited urban planning, which entails costly methods of bringing fuel to those communities.

Local renewable energy sources and increased energy efficiency will bring more economical and environmental benefits than in non-Arctic communities. In areas where there are no distribution systems for electricity and district heating, one possible solution could be energy quality management, using waste energy for heating or using centralized heat pump systems to provide heat.

Furthermore, the benefits of energy efficiency can be significant. In harsh areas like the Arctic, simple things as improved standards of insulation in buildings could increase energy efficiency and energy security. In this region, saving energy is smart economics, adding security and comfort to the people.

Ladies and gentlemen,

Having said all this the question still remains, what can we do to increase the share of renewable energy in the Arctic and thereby enhancing energy security?

To start with, we should map out all available renewable energy resources in the region. There, the International Renewable Energy Agency, IRENA, could have a role to play. This could facilitate support for renewable energy projects from multilateral financial frameworks.

Second, we, the countries of the Arctic region, are all engaged in negotiating a new climate agreement, to be reached in Paris in December. An important part of that agreement will be pledging support to the UNFCCC Financial Mechanism, represented in the Green Climate Fund – GCF. We as donor countries can, and should, advocate financial resources to climate investments through our GCF contributions.

We should also look into how community planning can support energy distribution, both for existing and new communities.

And last, but not least, we should put a special focus on research, development and innovation. This applies to the Arctic issues as well as most other energy related issues.

In this context I would like to mention that last week I attended a meeting of EU/EFTA energy ministers in Luxembourg where I had the pleasure of listening to inspiring lectures from Mr Elon Musk, CEO of Tesla, and Mr. Bernard Piccard, who built and flew the first solar driven aircraft.

I think it is safe to say that the novelty and pioneering presentations, and dialogue, from these two gentlemen made the energy ministers, with their pre-written speeches and comments, go silent. And og back home filled with inspiration.

New technology and new ways on thinking was their message - I think it is necessary to approach the Arctic issues from this angle. Not to repeat previous speeches but to look at the issues from a different and unexpected perspective. With innovation, technology, research and new ideas at the forefront.

Let's for example keep in mind that it was not a candlemaker that invented the light bulb … to quoute Mr. Piccard

When it comes to the Arctic we should allow ourselves to think outside of the box and be innovative. Increasing emphasis on research, development and innovation is there for essential in every aspect.

Ladies and gentlemen,

The Icelandic renewable-energy story can be told as the story of “best practice”, on how to use resources in a responsible and sustainable manner to create better living standards while at the same time ensuring energy security. This story can also become the story of the Arctic region.

There are numerous investments possibilities in the Arctic in the field of energy and industry. It is important to look into these possibilities, and analyse them, as for example a number of Icelandic companies have been doing (Landsvirkjun, Ístak and EFLA).

Having said that we need to be cautious and critical in our decision making when it comes to large-scale investment in the Arctic, while at the same time ensure that all stakeholders are involved and that the investment will deliver long-term benefits for the owners of the resources and the local communities.

Ladies and gentlemen,

Let me conclude by saying that this Summit in Fairbanks is an important venue for us in our continous Arctic discussions. It gives us an opportunity to take stock, share thoughts and past practice, and discuss ways to enhance our cooperation, guided by our shared interests.

The Arctic is one of the last frontiers of unspoiled land on the planet. Exercising caution in the Arctic is not to be questioned. Past history shows that unfettered access to natural resources can lead to overexploitation and environmental disasters. We must concentrate our efforts on ensuring that increased economic activity in the Arctic region contributes to sustainable utilization of resources and observe responsible handling of the fragile ecosystem.

And, as security is also the topic of discussions – I always like to share the former Norwegian Prime minister's vision for security in the Arctic with the simple fraze: “High-North – low tension”.

That can only be attained by good cooperation of all stakeholders, preferably within the realm of the Arctic Council.

Ladies and gentlemen,

At all times we must contribute to preserve the unique culture and way of life of indigenous people which have developed in the Arctic region. There is not short cut to this.

We share common responsibilities when it comes to the Arctic. Let's join hands and stand up to this responsibility and make sure that future generations can enjoy the wonders of the Arctic, as we can today.

Thank you!