It seems we will be talking a lot this year about the impact of geopolitical factors on the global economy. One of these is Greenland. Although Greenland appears as a frozen island on the map, it has strategic importance both geopolitically and geo-economically. It is an autonomous region under Denmark. Its population is 57,000 people. They engage in fishing. There is no agriculture or industry. Most needs are imported. Denmark provides approximately 600 million euros in grants every year, which is about half of Greenland's budget. In short, we can say that it is a region economically dependent on Denmark. Trump, however, wants to annex Greenland to the US. Although security rhetoric against Russia is at the forefront, there is a longer list that makes Greenland important.
The importance of maritime transport in world trade is undeniable. In addition to existing routes, the retreating glaciers due to the effects of global warming make the Arctic region more advantageous from a logistical point of view. It's as if a new natural ocean route is forming. According to a World Economic Forum report, the Northern Sea Route has the potential to shorten distances and travel times between Asia and Europe by approximately 30%, especially during the summer months, compared to alternatives. These conditions point to a scenario of significant reductions in freight costs, insurance expenses, and carbon emissions. Greenland is therefore in a key position in terms of the security, monitoring, and logistical support chain of this potential trade route. Therefore, influence and control over Greenland are crucial for having a say in the future of trade routes.
As we know, rare earth elements, which provide a vital input for energy and next-generation technology, are among the most important issues today. Another factor increasing Greenland's strategic value is its energy and mineral potential. According to the U.S. Geological Survey (USGS), the Arctic region holds approximately 13% of the world's undiscovered oil reserves and 30% of its natural gas reserves. Greenland hosts a significant portion of this potential. In addition, it is a significant source of rare earth elements (REEs), which are critical for electric vehicles, wind turbines, and the defense industry. Global reports indicate that approximately 60% of the world's REE supply is concentrated in China. According to 2025 data, while the world's REE reserves are approximately 92 million metric tons, China alone possesses 44 million metric tons. The US, on the other hand, holds approximately 1.9 million metric tons. China's clear monopoly in this area strengthens its hand against US anti-China policies. All these conditions elevate Greenland's strategic importance.
Greenland's importance to the US is not new. Various reports indicate that in 1946, the US offered Denmark approximately $1 billion in today's value for Greenland. Although the offer was rejected, this initiative reveals that the US viewed this island as part of its long-term security and geostrategic plans. The issue is not new, but its importance seems to have increased in the changing current conditions of the global order.
The US will likely be insistent on acquiring Greenland, just as it previously acquired Alaska from Russia and the Virginia Islands from Denmark. However, Greenland is a matter of European relations and NATO. Recent opinion polls and referendum discussions in Greenland show that approximately 85% of the population supports the continuation of the current autonomous status under Danish rule. Therefore, public opinion must also be persuaded. Economic incentives, infrastructure investments, and security guarantees are likely to be offered to secure public support. It's difficult to predict what the next step will be. However, the Greenland issue points to a US that is completely negatively diverging from China, Russia, and Europe. Efforts will likely be made to find a middle ground.
