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Dear Ministers, President, distinguished guests, Ladies and Gentlemen,

It gives me great pleasure to address the Arctic Frontiers, here in Tromsö.

In the course of time the Arctic, the High North as it is sometime referred to, is occupying a more prominent place on the agenda of international affairs – with good reason.

The Arctic is a global crossroad between commercial and environmental interests. On the one hand we have substantial natural resources within the region and on the other hand we have the perspective of the Arctic as being a particularly pristine and vulnerable environment.

That's why it is so good that we are here to discuss the balance between resource utilization and preservation, and between industrial and environmental interest in the Arctic.

I want to thank our Norwegian hosts for their organization and contribution.

The eight Arctic States share a common responsibility and a mutual interest in the protection and sustainability of the Arctic. It is underlined by our commitment to the Arctic as a region of peace, stability and cooperation. The rapid pace of developments in the Arctic – driven by climate change, but also by strategic considerations and high economic and commercial interests – has contributed to this increased attention to the Arctic in recent years.

For centuries, Iceland's social and economic well-being has been shaped by the natural riches and climatic conditions of the North. Our interests in the Arctic are manifold and the Government of Iceland has identified developments in the Arctic and Iceland‘s role in both managing and protecting it, as one of our top priorities.

Regional co-operation with other stakeholders is of key importance. The Arctic Council, which celebrates its 20th anniversary this year, remains the most important forum for discussion and decision-making on issues pertaining to the Arctic. Iceland will chair the Council from 2019 to2021 and it gives us an opportunity to put our mark on the agenda, as other countries have done during their chairmanship.

The United States, which currently holds the chairmanship, has for example placed strong emphasis on the ocean and on marine issues. It goes without saying that these are very important issues for Iceland. Climate change is one of the greatest threats to the ocean today. In this regard I want to mention ocean acidification, which is a serious threat for us all, not least in the Arctic. As Arctic seas become more open and accessible, we will face the challenge of potential illegal and unregulated fisheries. Another challenge is the added risk of environmental spills due to increased traffic in the Arctic. Fortunately, protection and sustainable utilization of the ocean resources has received greater attention in recent years. In every aspect, a broad-based co-operation is imperative. We need all hands on deck.

Ladies and Gentlemen,

We should be mindful that the Arctic has historically had renewable and non-renewable energy in abundance. It is my belief that the Arctic should be a region that other countries look to when exploring energy and industry related development. We speak from first-hand experience, coming from Iceland as we have been fortunate enough to be able to utilize our energy sector in a sustainable manner for decades, with a focus on geothermal energy and hydropower. Today this industry is one of the main pillars of our economy and our every day life.

In addition Iceland has recently started exploration of hydrocarbons on the Jan Mayen Ridge north-east of Iceland in the so called „Dreki“ area. The Icelandic Government has stated that it will encourage the exploitation of potential oil and gas resources as soon as practicable, should these be discovered in sufficient quantity to make extraction feasible. To this end the Government has undertaken preparatory regulatory work in connection with health, safety, transport, rescue work, environmental protection, infrastructure and co-operation with neighboring countries. I would especially like to take this opportunity to thank the Norwegian friends and the Norwegian Government for their assistance and excellent cooperation with my Ministry and our agencies in recent years within this field.

We also see new possibilities as new shipping routes open in the Arctic and various service potentials arise. This both applies to transport of goods and transport of people. Sustainable tourism, experiencing the wonders of the region, has for example great growing potentials. With proper management, this development can strengthen the local communities and fight depopulation. But this development does not only bring potentials, it also brings various risk management issues which we need to address with combined efforts on an institutional level. Again the Arctic Council plays a fundamental role and is now for instance putting enhanced emphasis on work regarding search and rescue in the region. The two legally binding agreements between the Arctic States facilitated by the Arctic Council on Search and Rescue and Cooperation on Marine Oil Pollution Preparedness and Response are pivotal in this regard.

Looking into the future one can only foresee increased economic cooperation between Arctic countries, whether it is in the field of energy, industry, tourism or fisheries. The opportunities are there and in this regard we welcome and support the work of the Arctic Economic Council, recognizing the central role of business in the sustainable development of the Arctic.

Having said this it is nevertheless always important to have both feet firmly on the ground and approach the Arctic issues in a sensible and responsible manner. In this regard we, therefore, need to rely on close regional co-operation and build on the previous 20 years work of the Arctic Council.

Ladies and gentlemen,

Innovation and new energy technologies can unlock new business potentials and energy technology innovation is central in meeting our common energy and climate goals. We see evidences of this transition all around us as we gradually move towards a clean energy era.

Our Icelandic energy policy has proven that it is both realistic and economically sensible to pursue a clean energy agenda. I can mention just one practical example. In Iceland around 75% of final energy consumption is from renewable sources, and the remaining 25% is from fossil fuel used in transportation and the fisheries fleet. We have gradually been able to achieve this status through innovation and sustainable utilization of our renewable natural resources in hydropower and geothermal energy. In the last 40 years the share of fossil fuel in space heating in Iceland has decreased from 50% down to 1%. Today 99% of our house heating is from renewable sources and all our electricity production is from renewable sources. The social and economical benefits of this development have been enormous, but this would not have happened without a political decision and commitment being made in the seventies to move towards utilization of domestic renewable energy sources.

And this can also be the story of the Arctic. The US Chairmanship of the Arctic Council has laid emphasis on increased use of renewable energy in the Arctic. The burning of fossil fuel and timber for energy generation causes formation of soot or black carbon, which is particularly harmful as it increases the melting of the ice-cap and threatens human health in the Arctic communities.

Ways of increasing the share of renewable energy in the Arctic should therefore be a priority in our work in the coming years. This could entail a win-win scenario for the communities, industries and the environment.

In this regard I would finally like to mention an interesting project which has received support from NORA and Nordisk Ministerråd: The „North Atlantic Energy Network project (NAEN)“. The aim of this project is to investigate how isolated energy systems in the North Atlantic, from Norway to Greenland can be connected to form an electrical grid in the North Atlantic. The project has explored the potential of connecting some of the best renewable energy sources in the Arctic and the North Atlantic, for example the vast hydropower potentials in Greenland. Access and utilization of renewable energy is a key element in fighting global warming and this project has allowed for informative exchange of knowledge between the participating regions and organizations.

A report on the NAEN project will be published today and I encourage you all to take a look at it.

Ladies and Gentlemen,

The Arctic is a complex region, where different interests can pull in different directions.

Looking ahead, I believe the future of the Arctic is very bright. I emphasize and what I think is of most importance is that today the Arctic is largely a well governed area. We have a well-structured and sound regional cooperation in the Arctic Council and we have legal regimes for the region firmly in place. We should have a vision of the Arctic not as a place of exploitation for short-term gain; but as a region of dynamic communities based on sustainable livelihoods and respect for the region's unique nature.

Thank you.