One of the most relevant geopolitical shifts in recent years is the push towards sovereignty by Greenland, which until recently had been mostly overlooked by the international community. The recent parliamentary win by the center-right Demokraatit party entrenched the island’s push towards autonomy from Denmark. However, the strategic positioning and untapped deposits of rare earth minerals have placed Greenland at the center stage of global interest with the United States taking the lead. With the Arctic becoming a center point with regards to climate change, the push towards sovereignty by the island must be done with care to ensure economic stability and avert geopolitical tensions.
The geopolitical value of Greenland cannot be denied. The island is rich with resources which are essential for the development of modern technology, and the strategic location offers major military advantages, as evidenced by the longstanding presence of the U.S. military at Thule Air Base. The recent proposal by President Donald Trump to purchase and take effective control of the island might seem rather unfeasible, but it nonetheless serves as evidence of Greenland’s economic potential and the broader global interest in the region. With the Arctic emerging as a new frontier for global competition, the drive for sovereignty for the island must balance economic independence with security.
Greenland remains very dependent on Denmark with annual subsidies amounting to nearly one-third of its GDP. The biggest challenge towards becoming a sovereign Nation is reducing its economic dependence while ensuring that potential international partnerships and alliances do not result in undue foreign influence. In order to achieve this, Greenland must find viable sectors, such as renewable resources, fisheries, and responsible mining, to create a sovereign economy. Additionally, it must also shield itself against excessive dependence on foreign powers, most notably China and the U.S., which are becoming very interested in the rare earth minerals within Greenland. Meanwhile, the path towards complete sovereignty must also occur in a gradual manner. It should be a step-by-step process by which the nation would increasingly assume control of core areas such as foreign affairs and the management of natural resources while maintaining economic and political linkages with the Danish government. This would prevent the nation from facing abrupt economic instability or pressures from the global world which would counteract its long-term objectives.
Greenland’s path towards autonomy is not occurring in isolation. The geopolitical value of the island means the global powers including the U.S. and NATO are also invested in ensuring stability within the region. The Arctic is becoming the new arena for geopolitical competition with increased military presence from Russia and China. As Greenland heads toward autonomy, it needs to proactively interact with the institutions of the region such as the Arctic Council to make itself a cooperative and responsible partner. Furthermore, good diplomatic relations with the U.S. and Denmark are also crucial. The fact that there is Thule Air Base is a testament to Washington’s strategic interest and therefore Greenland must treat its relationship with the U.S. with caution. Any future agreements regarding the military presence must be open and beneficial for the future security and economic advancement of Greenland.
Moreover, sovereignty for Greenland must also prioritize the well-being of its aboriginal people. It is imperative that its path to independence does not come at the expense of social cohesion or environmental stewardship. The policies must be written with the preservation of cultural identity, the establishment of economic opportunities for all citizens, and the protection against environmental degradation associated with resource extraction.
Despite the enthusiasm for the notion of independence, the most viable option is cooperative. Rather than defining sovereignty as a break with Denmark, Greenland must ensure that its political transition also preserves economic linkages and shared benefits. A well-structured process of independence can set the model for peaceful transition around the world and ensure the future of Greenland lies with its people. Independence is a challenging path, but with proper planning, strategic diplomacy, and responsible economic expansion, Greenland can be independent without undermining its security or stability. The actions today will decide the future of the Arctic, and it is essential that they are made with the vision for a prosperous future.
Sources:
- AP News. (2025). “Greenland’s Election Shifts Political Landscape Amid U.S. Interest.” Retrieved from https://apnews.com/article/13c295cbc716db2c8011be5819e11fef
- The Guardian (2025). “Is Greenland’s upcoming election its most significant yet?” Retrieved from https://www.theguardian.com/world/2025/mar/11/greenland-election-2025-trump-us-impact-polls-ia-siumut-naleraq
By The European Institute for International Relations
