In 2019, President Donald Trump expressed interest in purchasing Greenland. The proposal sparked global conversations and shed light on Greenland’s growing geopolitical and economical importance. Unsurprisingly, this proposal was dismissed as improbable, but it appears as though Trump is keen to try again.[1]
In December of 2024, Trump announced that it is ‘an absolute necessity’ for US ownership of Greenland, further explaining that ‘we need them for economic security’. Amid these claims, Donald Trump Jr. landed in Greenland earlier this month, fuelling speculation that another purchase attempt is on the cards.
Figure 1 Coloured homes set amidst a snowy landscape [2]
Why Greenland?
Greenland is the world’s largest island, rich in natural resources and strategically positioned in the Arctic. It occupies a unique geopolitical position, sitting between the US and Europe. Greenland’s location makes it a key player in Arctic affairs as new shipping routes are opened due to climate change; securing these shipping lanes would assert influence in the Arctic Council and would aid in counteracting rival powers’ activities in the region.
With its location comes an abundance of natural resources and potential for renewable energy, making it an increasingly valuable asset on the global stage. Greenland holds vast reserves of rare earth minerals that are essential for manufacturing renewable energy technologies and advanced electronics and these resources are crucial with the global drive for clean energy.
Renewable Energy Opportunities
Greenland has vast potential for renewable energy, particularly in hydropower and wind energy. Its rivers, fuelled by melting glaciers, provide opportunities for hydropower development on a large scale and wind energy projects could also take advantage of the island’s strong Arctic winds.
According to a report by the International Hydropower Association (IHA), Greenland could generate up to 800TWh of electricity annually from hydropower, with enough surplus to be utilised for green hydrogen production. [3]
The Future of Greenland
With fears over the melting glaciers, concerns have turned towards the Atlantic Meridional Overturning Circulation (AMOC). The AMOC is a system of ocean currents that circulates water within the Atlantic Ocean, bringing warm water north and cold water south in which Greenland serves as the on/off key.[4]
This is slowing due to the increase in fresh water being dumped into the ocean as a result of the melting ice. If the AMOC came to a halt, agriculture, ecosystems and the weather system as we know it would be derailed. Lesser effects such as the dramatic drop in temperature the majority of the US is suffering are already occurring.
Action needs to be taken to keep the AMOC in order. Utilising the potential for renewable energy within Greenland would aid with slowing down the effects of climate change. By investing in hydropower, wind, solar, and emerging technologies, Greenland can drive economic growth while addressing global climate challenges.
About Pager Power
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References
[1] https://edition.cnn.com/2025/01/07/climate/trump-greenland-climate/index.html
[2] Rod Long (Sept 2022). Last accessed on 20th January 2025. Available at: https://unsplash.com/photos/a-group-of-houses-on-a-hill-with-mcmurdo-station-in-the-background-G5lDKjHgxlE
[3] International Hydropower Association. (2021). Hydropower Potential in Greenland., https://www.hydropower.org