The Arctic, once a remote frontier, has emerged in the past year as a critical arena for geopolitical, environmental, and economic activity. Melting ice has opened new, but highly unpredictable, shipping routes and the region’s vast natural resources have drawn the attention of global powers. The Arctic Council, a consensus-driven forum of eight Arctic states (Canada, Denmark, Finland, Iceland, Norway, Russia, Sweden, and the United States) is a key structure for cooperation on climate, biodiversity, and sustainable development. But now, with the U.S. policy shift under President Donald Trump, Russia’s aggression in Ukraine, and China’s ambitions all putting pressure on regional dynamics, the Council’s work is arguably more important than ever.

In May 2025, Denmark, representing the Kingdom of Denmark (including Greenland and the Faroe Islands), assumed the Council’s chairship from Norway, taking on a critical role in a turbulent global landscape. Interviews with Denmark’s Ambassador to Canada Nikolaj Harris and Robert Sinclair, Canada’s Senior Arctic Official at Global Affairs Canada, highlighted a number of shared priorities. 

The Arctic’s Rising Strategic Importance – A Danish Perspective

“When I started in the ministry 24 years ago, the Arctic was not a hot topic,” said Ambassador Harris. “But the dynamic in the world has changed. The international rules-based order is under pressure. We see an assertive China and an aggressive Russia, with an unjust war in Ukraine. And we also see a change in climate and the melting of the ice. So you see opportunities for sea routes, but also extraction of critical raw materials, natural resources, and so on. This has led to increased competition between the U.S. and its allies on one side and Russia and China on the other.” For Denmark, the Arctic has become a strategic priority. Its 2025 diplomatic work in the area aims to strengthen multilateral cooperation, protect sovereignty, and address climate and Indigenous concerns.

Denmark’s chairship, building on Norway’s 2023-2025 tenure, has an ambitious agenda, as outlined in its program. “The Kingdom’s chairship will focus on advancing sustainable development, and economic empowerment of Indigenous people in the area,” said Ambassador Harris. Denmark ensures Arctic communities, especially Indigenous groups, lead and benefit from development through projects tailored to local needs and informed by Indigenous Knowledge. It supports economic growth, from hunting and fishing to mining, tourism, and renewable energy, with a strong focus on green initiatives like wind power to mitigate Arctic warming.. The “blue bioeconomy” promotes sustainable aquaculture and seaweed farming. Denmark will strengthen monitoring of melting sea ice, address the Arctic’s rapid warming—four times the global average—and promote ecosystem monitoring, combining scientific data with Indigenous insights.  These efforts are a part of Denmark’s 2025 “diplomatic super year,” encompassing not only leadership of the Arctic Council, but its EU presidency, UN Security Council seat, and Nordic-Baltic Eight chairship. 

Canada’s Central Role

Canada was one of the founding members of the Arctic Council when it was established through the signing of the Ottawa Declaration in 1996. One of the values it set forward was the inclusion of Indigenous voices as Permanent Participants. These six Indigenous organizations are the Aleut International Association, Arctic Athabaskan Council, Gwich’in Council International, Inuit Circumpolar Council, Russian Association of Indigenous Peoples of the North, and the Saami Council. 

“We had an anniversary year just recently, and you could even say that Canada pushing for a role for Indigenous peoples at the Arctic Council was one of the first international concrete steps towards reconciliation domestically,” said Sinclair. “We recognize that we have a long term abiding interest in the success of the Arctic Council, and that we recommit to the Arctic Council in the Arctic Foreign Policy, including by increasing the funding for what we call the Global Arctic Leadership Initiative.” 

Canada’s 2024 Arctic Foreign Policy allocates $1M CAD to this initiative to advance Indigenous rights, environmental protection, and sovereignty. Sinclair highlighted the Council’s contributions such as agreements on search and rescue, oil spill preparedness, and scientific cooperation.

Geopolitical Pressures and Responses

But in 2025, the Arctic Council is navigating more complex tensions than ever. “We believe that the Arctic Council is a very important institution that  includes and involves all Arctic states, and provides a table where you can meet and discuss common challenges,” said Ambassador Harris, noting challenges from Russia’s 2022 invasion of Ukraine. 

Russia’s invasion disrupted Arctic Council operations, prompting the other seven members (Canada, Denmark, Norway, Sweden, Finland, Iceland, the U.S.) to pause high-level cooperation with Russia. Sinclair noted that “business as usual” with Russia is not possible, and it is for Russia to create conditions for restored cooperation. 

However, Norway resumed technical working groups in 2024, and included  Russia, to maintain the Council’s functionality – a move the Danish Ambassador praised. This pragmatic approach, as the Ambassador explained, supports this limited engagement to address shared challenges like climate and biodiversity, while condemning Russia’s actions. Russia’s strategic interests—control over the Northern Sea Route, resource extraction, and military buildup on the Kola Peninsula—conflict with Western priorities, and its growing reliance on China complicates governance. Denmark aims to sustain this momentum, focusing on non-military security issues like climate, economic development, and Indigenous empowerment, as mandated by the 1996 Ottawa Declaration establishing the Arctic Council.

Trump’s re-election also added complexity. His March 2025 claim that Greenland is a U.S. security necessity drew objections from Denmark and Greenland. And his repeated references to Canada as the “51st state” spurred significant pushback from Canadians. His skepticism of multilateral forums, seen in past rejections of Council declarations mentioning “climate,” challenges consensus within the group. In addition, U.S. cuts to Arctic research funding, critical for monitoring warming, may prompt other member states to fill gaps, ensuring science-based decisions endure. Sinclair noted Canada’s concerns over U.S. sovereignty rhetoric but highlighted America’s overall commitment to the Council, and to Denmark’s leadership of the organization, as a stabilizing force. 

China’s observer status, with interests in resources and the Polar Silk Road, raises concerns about dual-use research and Sino-Russian ties. Denmark and Canada advocate cautious, transparent engagement, leveraging China’s scientific contributions while safeguarding Arctic governance. These responses reflect Denmark’s chairship strategy to adapt to a shifting landscape, maintaining the Council’s role as a cooperative platform.

Canada and Denmark: A Strategic Partnership

Canada and Denmark are key Arctic partners. “The kingdom is a neighbouring country. We share the longest maritime border in the world. We even share a small land border on Hans Island. And I see a mutual interest in increasing our cooperation,” said Ambassador Harris. Denmark’s chairship aligns with Canada’s Arctic Foreign Policy, emphasizing Indigenous-led development and climate action. 

Denmark’s Arctic defense investments complement Canada’s sovereignty efforts, with a Danish defense attaché in Ottawa since February 2025 strengthening NATO ties. In addition, a 2024–2031 Arctic package, valued at $3B CAD, funds satellite capabilities, ground sensors, long-range drones, and three Arctic ships. 

Denmark’s green economy initiatives, including renewable energy and sustainable marine industries, strengthen trade and climate collaboration with Canada through the EU-Canada Comprehensive Economic and Trade Agreement (CETA) and the June 2025 EU-Canada Summit commitments on green technologies and critical minerals. Canada’s trade diversification, spurred by U.S. policy shifts and the Prime Minister’s visits to Europe, creates opportunities for both Denmark and Canada.

Denmark ensures community-led development in mining, tourism, and renewables, and is aligned with Canada’s support for science-driven policies. Denmark will use Arctic Council working groups to monitor climate and biodiversity, integrating Indigenous Knowledge, with Sinclair noting their role in conservation agreements. 

The Arctic Council is back in business, if you will, and really re-energized,” said Sinclair, signaling confidence in both Denmark’s leadership and the organization’s critical role going forward. The Danish Ambassador was equally optimistic about the Council, as well as Canada-Denmark ties, that he feels are rooted in shared values. Through this partnership, Canada and Denmark can guide the Arctic toward a sustainable, inclusive future.