Save the Arctic!

The plundering of raw materials must stop, says Clement Booth, member of the Board of Management of Allianz SE.

 

Patience reaps rewards. That is the opinion of those who have spent the last half century watching the polar ice caps melt, dreaming of a northern shipping route between the Atlantic and Asia. Until now always an alluring yet audacious dream, a commercially viable Northern Passage could soon become reality.

 

In only a few years, sea ice cover in the Arctic has shrunk dramatically. In autumn 2012, the total Arctic ice volume was 36% lower than the average autumn ice volume from 2003 to 2008. The first ships navigated the previously ice-bound northern sea passage in the late summer of 2005, and three years later the passage was pronounced completely ice free for the first time.

 

In some commercial offices there are now excited murmurings: this is one of the great advantages of global climate change! In 2010 four ships navigated the Northeast Passage along the coast of Russia. One year later, that number had jumped to 34, and last year it was 47. According to forecasts, by 2030 two percent of global shipping could travel via the Arctic, rising to five percent by 2050.

 

Could we? Should we? There would be a high price to pay for this new route. A price that no-one is currently in a position to realistically calculate, namely that paid by the environment. Of course shorter trade routes are appealing. The route from New York to Tokyo via the Northwest Passage is 4,200 kilometers shorter than the route via the Panama Canal. The journey from Hamburg to Yokohama is reduced by 36 percent, and that from Hamburg to Shanghai by 25 percent. And there are no pirates in the Arctic, either. Thus in theory the route could speed up transportation and drastically reduce the consumption of resources as well as CO2 emissions.

 

However, the polar route is passable for merchant shipping only in the summer, if at all, and even in the summer sudden changes in climate can cause the waterway to freeze back over. Five years ago forecasters predicted the Arctic's first ice-free summer for 2008. Yet when the said year arrived, the Arctic Ocean actually remained frozen.

 

Ice is neither the only nor the most significant hazard presented by a summer passage, however. The main risk is accidents that could involve the spillage of countless tons of oil and chemicals. These would cause irreparable damage to a highly sensitive ecosystem that is unique in the world by dint of its being untouched. If there were an oil spill, there is no equipment that could remove the highly toxic raw material from the drift ice.

Clement Booth: "A commercially viable Northern Passage could soon become reality. There would be a high price to be paid by the environment."
Clement Booth: "A commercially viable Northern Passage could soon become reality. There would be a high price to be paid by the environment."
In only a few years, sea ice coverage in the Arctic has shrunk dramatically. How is our world going to change?

In only a few years, sea ice coverage in the Arctic has shrunk dramatically. How is our world going to change?

There is practically no infrastructure comprising hospitals, rescue stations and recovery teams, just as there is little opportunity for ships to take on fuel and extra provisions. Not only that, but it can take just a matter of days for a storm to drive ice floes together and create impassable stretches of pack ice, which it could break back up again only days later.

So the new global route is not really all that attractive. The bigger danger is therefore the increasing amount of internal shipping in Arctic waters. This has a significant impact on one of the world's few remaining untouched regions and has come about due to the rich reserves of raw materials above the Arctic Circle.

As far back as 2009 the US Geological Survey estimated that some 30 percent of undiscovered natural gas reserves and around 13 percent of undiscovered crude oil reserves are located in the Arctic, mostly offshore at depths of less than 500 meters.

These are rich reserves indeed and are hugely sought after by both the East and the West. Thus the coming decade is likely to see investment to the tune of 100 billion euros in the extraction of raw materials in the Arctic, according to insurer Lloyds of London. And the Russian Ministry of Transport forecasts that freight transport of raw materials in the region will rise more than thirtyfold, from 1.8 to 64 million tons.

Oil, gas and ores, precious metals and rare earths — all are to be extracted and removed. Pipelines and roads are planned for the area, there will be noise from the drilling and ground exploration, and shipping traffic including ice breakers is ballooning.

This also leads to considerable and largely unresearched risks. A visit to this delightfully silent landscape with its abundant fish stocks is all that is needed to realize that no effort or expense must be spared to maintain this bioreserve.

The uncertainties of the Arctic and the inhospitable environmental and climatic conditions also make it very difficult for companies to carry out their activities there safely and responsibly.

Apart from that, the urgent need for climate protection means that the world is compelled to replace natural gas and crude oil with renewable energy sources. All this considered, it is time to initiate an international consultation process with the ultimate aim of leaving the land north of the Arctic Circle largely untouched.

Were the climate protection negotiations not already stymied by the shortsighted pursuit of national interests, they would perhaps be the first port of call for achieving protection agreements for the Arctic. If no action is taken, the unique natural environment of the extreme north will soon be no more.

Were this to happen, our grandchildren and their descendants would have to live with the consequences, without even the slightest chance of reversing a process which today we still have an opportunity to control.

Originally published in "Die Zeit" on May 29, 2013. Republished by permission. 

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Katerina Piro
Allianz SE
Phone +49.89.3800-16048
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