Arctic Economic Council chief praises Korean shipbuilding, says growth in region can be sustainable

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Arctic Economic Council chief praises Korean shipbuilding, says growth in region can be sustainable

Published: 26 Sep. 2025, 13:27 Updated: 28 Sep. 2025, 18:25

Audio report: written by reporters, read by AI

Mads Qvist Frederiksen, director of the Arctic Economic Council [WOO SANG-JO]

TROMSO, Norway — Mads Qvist Frederiksen, director of the Arctic Economic Council (AEC), said demand for ice-breaking liquefied natural gas (LNG) carriers is likely to rise in the near term as Arctic routes open, followed by growing demand for eco-friendly vessels.

“The Korean companies are world leaders in shipbuilding for Arctic oceans,” he said.

Established at a 2014 senior officials’ meeting of the Arctic Council (AC), the AEC brings together companies from eight countries — the United States, Canada, Norway, Finland, Sweden, Russia, Iceland and Denmark — to discuss sustainable development in the Arctic.

The following interview has been edited for length and clarity.

Q. The accelerating pace of Arctic ice melting has brought global attention to Arctic shipping routes. How do you interpret this development?

A. Global warming in the Arctic happens at three times the global average. Over the past decade, we have seen an increase of shipping by more than 35 percent in the Arctic. There will be less multiyear ice, and the ice will not be as dense. Definitely, the Arctic in 2050 will be very different from the Arctic today.

Mads Qvist Frederiksen, director of the Arctic Economic Council [WOO SANG-JO]

The Arctic routes are often categorized as the Northern Sea Route [NSR], the Northwest Passage [NWP] and the Transpolar Sea Route [TSR]. How would you assess the current and future development potential of each route?

The NWP is famous historically. It goes along the coast of Alaska and Canada. A recent scientific study that was published in [international science journal] Nature showed that shipping on the NWP might even be more difficult, as the ice melts due to the creation of so-called chokepoints — where the ice gets blocked in certain passages.

The TSR is running across the North Pole. This route is not being used today — maybe except for the rare occasional research vessel — but some people see potential in this one in the future. There are challenges around the lack of infrastructure in the area, as well as the uncertainty of how it is to operate there. Some people expect the route to be the most used in the future because it will be fast and direct.

The NSR is quite active with energy shipping — primarily LNG going from Russia to Europe and Asia. The NSR runs along the coast of Russia, and the Russian government has huge expectations for the potential of this route. However, the sanctions on Russia due to the full-scale invasion of Ukraine makes it difficult for international operators to sail there. Currently, it is just Russian companies and a few Chinese container ships sailing there. If the political climate changes in the world, then the shipping route might have a potential. It would take some investments in, for example, search and rescue and icebreaker escorts.

While optimistic economic assessments exist, concerns also persist regarding environmental degradation and the acceleration of global warming. If development is to proceed, what safeguards or precautions should be prioritized?

The Arctic region has some of the strictest environmental rules in the world. It is our home, so we also care for it as well. Yet, it does not mean we don’t want development. It is possible with growth that is sustainable and responsible.

In the Arctic region, around 10 percent of the population is Indigenous, and they have a wealth of knowledge and understanding that is important to engage with. There are many ways to work with the Indigenous peoples but the most important is involvement, consultation and knowing the local context.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY JANG WON-SEOK [[email protected]]