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Greenland breaks temperature records, shifting economy away from fishing and towards minerals

Greenland - the 'Arctic Island' coveted by U.S. president Donald Trump - experienced its hottest January ever this year. A rate of warming that is four times faster than global averaging has changed the outlook in sectors from mining to fishing.

Trump said that the U.S. should own Greenland - an autonomous part within the Kingdom of Denmark - for security reasons, although he has backtracked on his threats to seize the island with force.

The Danish Meteorological Institute's preliminary temperature readings in Nuuk, Greenland's capital city, averaged +0.2° Celsius (32.4° Fahrenheit) during January. This is the highest recorded and above the historical average -7.7° between 1991 and 2020.

Jacob Hoyer, director of the National Centre for Climate Research in the Danish Meteorological Institute, said that "Climate changes are already clearly visible on Greenland".

"The records show that the temperature is rising four times faster than average for the world."

According to Hoyer, the warm weather makes it harder to use sea ice for transportation. It is less thick and extends further south along the coast.

Fishing is the backbone of Greenland’s economy. Statistics Greenland says that shrimp, halibut, and cod catches will account for the largest exports and 23% of the gross domestic product by 2023. The industry is also responsible for 15% of the total jobs.

"The waters surrounding Greenland also warm up and this can change ecosystems and the fishing business." Hoyer said that it will likely have an effect, but added that it is too early to say exactly how.

Greenland's strategic mineral resources could also play a role in the power struggle for the island. While Trump has primarily focused on security, the island is home to a number of minerals that are considered "critical raw materials" by the European Commission. According to a Danish study published in 2023, 25 of the 34 minerals that were deemed by the European Commission as "critical raw materials", could be found on Greenland.

Mining has historically been expensive due to the red tape that surrounds mining concessions and harsh conditions. Hoyer stated that the flip side of the warming climate is that these ventures could become more profitable because?extraction? and?shipping become less expensive.

Businesses in established sectors still face uncertainty today. Casper Moller is the owner of a tour company that provides tours to tourists. He says there's not enough snow or ice for them to be done on skis or snowmobiles.

He said, "So what we're doing right now is crossing our fingers and hoping that more snow will come soon." (Reporting from Nuuk by Fedja Gulovic, with additional reporting from Tom Little in Copenhagen, and Johan Ahlander at Stockholm; editing by Ros Russell).

(source: Reuters)