Nordic investors ask EU to maintain its stance on Arctic drilling ban amid energy crises
Investors and financial institutions have urged the European Union to maintain its opposition to any new Arctic oil & gas drilling as it considers re-evaluating its position to prioritize energy security. Investors are concerned that the U.S./Israeli war against Iran, which triggered the current energy crisis, could be used as a justification to roll back climate commitments.
Nordea Asset Management (part of Nordic lender Nordea) and 11 other financial institutions are among the signatories who urged the European Commission to not weaken their stance on Wednesday, warning that it would undermine climate goals as well as?long-term security in energy.
The letter was written by Sampension, a Danish pension fund, and the Nordic Center for Sustainable Finance. It also included scientists and civil society groups.
The letter stated that the Arctic was one of the most vulnerable ecosystems on the planet and is home to "unique wildlife ..... Further oil and gas development would add pressure to the ecosystems by increasing the risk for oil spills.
It added that oil spill simulations showed that more than 90 percent of oil spilled in certain fields at the Barents Sea could not be recovered. The conflict in Iran has caused global energy markets to be disrupted and European gas prices have risen. Norway, Europe's largest gas supplier, but not a member of the EU, has been pressing Brussels to end the moratorium.
The Norwegian production will decline by 2030 if companies like Equinor do not make new discoveries outside of mature areas.
KLP, Norway's largest pension provider, has also signed the letter.
Current EU policy "supports" a ban on further Arctic oil and natural gas development, and refuses to purchase such hydrocarbons. There is no formal moratorium in place.
A spokesperson for the Commission said that the EU was reviewing its Arctic Policy "in light the new geopolitical context and geoeconomic environment" but no conclusions had yet been reached.
Jacob Ehlerth Jorgensen is the head of ESG for Sampension. He said that the fund supported Norway as an energy provider, but Arctic drilling wasn't the answer to Europe's challenge in energy security.
"This is about the next steps. Where we open up some risks - in terms of energy, climate, and biodiversity. Or if there's a smarter approach to it," he said. Reporting by Stine Abnett and Kate Jacobsen, both in Copenhagen. Mark Potter edited the article.
(source: Reuters)
