Norway and Canada are blessed with an abundance of natural resources. We can extract petroleum resources from the ground and hydropower from our waterfalls. And we share a love of nature, respect for the environment and a strong sense of responsibility for managing our assets in a sound manner.

We have also been provided with considerable human talent. We should put it to good use. I am sure that many of those attending this seminar will call for more research and technology – I myself being one of them – –and this is, in fact, an expression of our faith in the human mind and its ability to solve apparently insoluble problems.

• The High North will be an area of particular strategic importance for Norway for many years to come. The mixture of challenges and opportunities in this area lies at the heart of Norway’s policy for the High North. We see a need to meet these challenges together with close international partners. That’s why we have taken the initiative to establish a dialogue on the High North with our most important partners – including Canada, which we feel close to in many respects.
• I am very grateful to you for hosting this seminar. The preparations for the seminar have identified a large number of topics that are relevant for our discussion, and this reveals the great potential for Norwegian-Canadian cooperation on High North issues.
• The High North is familiar to Canadians. But that familiarity is rare. On most international TV channels, weather maps of Europe stop just north of the 60 ^th> parallel, showing the three Nordic capitals of Oslo, Stockholm and Helsinki, but not much more. Last week my colleague in the Icelandic Ministry of Foreign Affairs showed me a glass globe of the world, which he had received as a gift from an Asian country. The only hitch was that Iceland did not exist on the map drawn of the globe. So although WE know the territories and countries of the High North, we must not overestimate the rest of the world’s knowledge of the area!
• As you pass the Arctic Circle travelling northwards on the Norwegian mainland, you enter the Barents region. One third of mainland Norway lies north of the Arctic Circle. Furthermore, the Norwegian jurisdiction in the Arctic and Barents Seas covers an area six times the size of mainland Norway.
• For decades this was a frozen region, not just literally, but also politically. This is where Norway and Russia meet, on land and in the Barents Sea. During the cold war this was where East met West, where NATO met the Warsaw Pact, where the balance of power relied on silent threats and counter-threats, intercontinental missiles and the operating range of strategic and tactical submarines.
• The military scenarios based on distrust, confrontation and invasion are now collecting dust in the archives. The view of the strategic importance of the area is shifting from a military security perspective to a perspective characterised by increased communication, issues of energy security, sustainable resource management and climate change issues.

Energy issues

• The Barents Sea has the potential to become an important source of energy for Europe and North America. The International Energy Agency predicts that by 2030 the world’s aggregate energy demand will have risen by 60 per cent. Dependence on OPEC oil will inevitably increase. Diversification will become a priority.
• Politically the Barents Sea is a stable region. In the years to come both Europe and the United States will be looking to this area for additional supplies of oil and gas. High prices will change the map of the energy sources and supply routes. The development of Canadian oil sands resources is but one remarkable example.
• Today Norway is the world’s third largest exporter of oil (after Saudi Arabia and Russia), and we produced 25 per cent of all the gas consumed in Western Europe in 2003. Only Russia produces and exports more gas to Europe.
• There are probably substantial undiscovered gas and oil resources in the Barents Sea. The Norwegian gas field Snow White will start exporting gas to the US next year, using sub-sea and LNG technology. This will be the first gas field to come into production in the Barents Sea.
• The huge Shtokman field in the Russian part of the Barents Sea is likely to start producing gas around 2012. This gas field is one of the largest ever to be discovered. Two Norwegian oil companies are among the five companies shortlisted for participation in the development of this field.

Integrated management – high environmental and safety standards

• The opening of the Norwegian part of the Barents Sea for petroleum production must be based on a careful assessment of the environmental risks and constraints. Operators on the Norwegian shelf abide by very stringent environmental and safety regulations. By participating in the new era that is dawning in the Barents Sea, Norwegian companies will contribute to setting high standards for activities in this vulnerable region.
• The Barents Sea also contains vast renewable natural resources, not least living marine resources. In recent years, it has yielded an average of 2.5 million tonnes of fish annually. The value of the approximately 500 000 tonnes of cod that are harvested every year is close to USD 1 billion (about NOK 6 billion).) Sound stewardship of our fisheries is a challenge. We want to support our fishing communities, yet precisely for their sake – and for our own – we must set sustainable quotas and police our waters to ensure that they are respected.
• The Arctic oil age is likely to last a few generations. The renewable living marine resources of the northern seas will last forever, as long as we harvest them on a sustainable basis. Consequently, we must make sure that the exploitation of energy resources is based on stringent environmental standards and the most advanced technology available.
• The Norwegian Government recently presented an Integrated Management Plan for Norway’s part of the Barents Sea. This plan is based on an ecosystem approach and includes standards for petroleum exploration, transport and fisheries, and addresses other environmental concerns.

International cooperation

• Colleagues from the Ministry of the Environment are here to present the Integrated Management Plan in further detail. Such a management plan could be a useful tool in other regions as well.
• The marine resources in the Barents Sea know no borders. Neither does pollution. It is therefore particularly important to us to continue and enhance cooperation between Norwegian and Russian authorities in order to establish a high level of safety and environmental standards for the petroleum extraction activities in the Barents Sea.

Fisheries – violations of the management regime

• Marine resources must be managed in such a way that they continue to secure food supplies and provide jobs and income for future generations.
• Norway’s policy is based on the principle of sustainable management and harvesting. The Barents Sea is one of the world’s most important laboratories for developing a sustainable and ecosystem-based fisheries management regime. Norway and Russia are co-operating closely on this.
• Illegal, unreported and unregulated fishing is a serious problem for many coastal states in charge of managing fisheries. It leads to fish stocks being overexploited and severely depleted, with the result that legal fishing may have to be reduced or even stopped. Estimates indicate that 100 000 tonnes of fish at a first hand value of approximately EUR 200 million are illegally caught per year. That is in fact one fourth of the total allowable catch.
• Illegal, unreported and unregulated fishing is a major problem worldwide, and constitutes a serious form of crime against nature, and jeopardises the future of our fisheries. We have a common interest in putting an end to this criminal activity which endangers the future development of fish stocks. We have discussed this at length with several other countries like Russia, Iceland and EU member states, which are joining us in the fight against this problem. We invite others to help us combat this serious environmental problem.

Climate change

• Global warming is without a doubt the most pressing issue on the Arctic environmental agenda. The consequences of climate change in the Arctic will be dramatic and could affect industries, infrastructure, transport, the environment and vital aspects of human life.
• The Arctic Climate Impact Assessment (ACIA) is a landmark achievement. It was produced by the Arctic Council, which is made of the five Nordic countries, Canada, Russia and the US.
  
• We need to follow up the assessment and to link it to research, monitoring and data collection. This includes drawing on local and indigenous knowledge and observations in connection with International Polar Year 2007-2008 and future work under the Intergovernmental Panel on Climate Change and the Arctic Council.
• Climate change is not only a question of an increase in median temperature. Climate change may affect wind and ocean currents. Norway is highly dependent on the Gulf Stream, and we note that Iceland is planning an event focussing on the professional assessment of effects of climate change on the Gulf Stream later this year.
• Climate change is a serious issue and we must use all our intellectual ability and flexibility in addressing it. My friend Johan Mikkel Sara, who will speak later on today, has given me the good advice that although climate change is worrying, it may in some cases be possible to adapt, which is in keeping with traditional Saami knowledge. However serious the challenges, the effects of climate change may also offer opportunities. A northern sea route could be one such opportunity.
• The Arctic region does not contribute significantly to global climate change. However, the Arctic states are responsible for about 40 per cent of global greenhouse gas emissions. We must therefore take the lead in reducing emissions of greenhouse gases, and we must cooperate on finding appropriate ways to adapt to the rapidly changing climate.
• Indigenous communities are facing major economic and cultural impacts. Many indigenous peoples depend on fishing, hunting and reindeer herding, not only for their food and livelihoods, but also as the basis for their cultural and social identity. Changes in species’ ranges and availability of and access to these species pose serious challenges.
• Northern Norway is an important region for Saami nomadic reindeer herding. The local effects of global warming are likely to be most pronounced there during the next 30 to 50 years. Reindeer herders in Norway have to prepare themselves, their communities and the management authorities for this in order to minimise their vulnerability to the effects of climatic change. They must also identify the risks related to rapid changes in their society.

Promoting knowledge-based development

• A constant emphasis on knowledge will be the common denominator for Norway’s engagement in the High North. As a coastal state, we must use nothing less than state-of-the-art knowledge about all aspects of resource management and all fields of activity as our yardstick.
• Norway and Canada produce energy from fossil fuels. In addition we have substantial hydropower. But there does not necessarily have to be a conflict between renewable and non-renewable energy resources in policy-making. There is a need for further research on both types of energy, which should involve scientists in the public and the private sector. I commend the oil companies that have chosen to invest in renewable energy research. I believe that countries like Norway and Canada – whose strengths lie in non-renewable fuels – have a special responsibility to contribute to the development of renewable energy technology and know-how.
• The new Norwegian government has launched “Barents 2020”, a research and development programme designed to help spur the expertise needed to meet the major challenges we are facing in the north in terms of technology and management. A key focus will be on how to reconcile petroleum exploration development with an effective environmental management regime.
• We also hope Barents 2020 will serve as a platform for cooperation and exchange of knowledge between Norwegian and international experts. With so many Norwegian and Canadian experts gathered here in Ottawa, I hope we will be able to identify some topics for joint research projects today or tomorrow.
• All the countries in the Arctic Region have a special responsibility to continue observation and research activities in relation to climate change and its effects in the region. I know that there are excellent researchers in this field present here today.

Arctic Council

• The Arctic Council is an important forum for addressing these issues at the circumpolar level.
• Norway will be chairing the Arctic Council for 2006-2008, after the present Russian chairmanship steps down in late October. After Norway, Sweden and Denmark will follow as chairs. The three countries intend to coordinate their programmes for the Arctic Council for the period 2006-2012.
• Issues such as the sustainable use of natural resources, contaminants and climate change are important priorities for our three countries, and will most likely be reflected in our coordinated Arctic Council programme.
• The Arctic Council is eminently suited to address the circumpolar countries’ aim of attaining high standards for the environment and safety in commercial activities in the Barents Sea.

International polar year 2007-2008

• Norway’s chairmanship of the Arctic Council will coincide partly with the International Polar Year 2007-2008, which will provide a major boost for international research cooperation in the Arctic and the Antarctic. Norway will take active part in this.
• New knowledge and expertise will be important outcomes of the Polar Year. I hope that we will also be able to establish a set of permanent, circumpolar Arctic stations for environmental monitoring as a basis for sound research.

International cooperation

• We see a need for closer international cooperation to address many of these issues. We will devote a great deal of effort to strengthening our cooperation with Russia, both bilaterally and in regional organisations such as the Barents Council and the Arctic Council.
• We also recognise the fact that other countries are showing an increasing interest in the High North. This is why we want to further develop dialogues on the High North with European and North American partners.
• Canada’s northern areas are much larger than Norway’s, which means that Canada is a key partner for us in these matters.
• We share the need to strengthen the international focus on important issues such as the consequences of climate change and the need for sustainable resource management. We also share the need to strengthen knowledge and develop new technology to meet the challenges in the petroleum sector in this area. And we share the desire to develop the High North for the benefit of the people who live in this region.
• I said by way of introduction that we should not overestimate the world’s knowledge of the High North. And given the energy security perspective and the environmental challenges I have outlined today, we should not underestimate the world’s interest in the High North either. The world is watching. Let us – as responsible and committed countries – show that we in turn will watch over the High North.