4 Community development and commercial activities in Longyearbyen

4.1 Introduction – objectives and overall framework

One of the overriding objectives of Svalbard policy is the maintenance of Norwegian communities in the archipelago. This objective is achieved through the family community in Longyearbyen. Commercial activity is not intrinsically an objective of Svalbard policy, but rather a means of supporting the objective of maintaining Norwegian communities. When the 2016 Svalbard white paper was presented, it was clear that coal mining, traditionally the mainstay of Longyearbyen, had declined in significance and that the community was facing a necessary transition. The Storting’s consideration of the report facilitated the continued development of existing activities such as tourism, research and higher education, as well as a broad and varied commercial activity, preferably involving secure, year-round jobs. At the same time, it was emphasised that it is not an aim in itself for the community to grow beyond the current level, meaning that no development should be facilitated that would result in the need for an expansion of services or major investments in infrastructure.

The restructuring has been successful in many ways. Today, Longyearbyen has a differentiated business community consisting of companies involved in tourism, communications, the service industry, building and construction. However, it also has clear elements of research and higher education. At the same time, Longyearbyen has developed into a more modern family community. The population has increased and there are now just under 2,600 residents, compared with around 2,130 in 2016. As well as businesses, education and research contribute to maintaining a stable family community and the active participation of students in culture and outdoor recreational activities represents a positive contribution to the local community. In addition, there are public and governmental functions necessary to operate and govern the community which are adapted to developments in the community in general.

Going forward, Longyearbyen shall remain an attractive place for Norwegian families, thereby contributing to fulfilling the objective of Norwegian communities on the archipelago. Facilitating a family community so far north is expensive, and an increase in population and activity also entails increased costs for the State. The instruction that Longyearbyen is not to be a community for lifelong residence remains fixed, and it is not desirable for the community to grow beyond its current level. Development triggering the need for considerable investments in infrastructure or the expansion services offered in Longyearbyen shall not be facilitated. At the same time, Longyearbyen shall be a good place to live for its inhabitants. There shall be activities that contribute to the fulfilment of the overriding objectives of Svalbard policy. To ensure development corresponding with these instructions, it is necessary to adjust the relevant policy instruments. Below, the Government describes community development and commercial activity in Longyearbyen, and proposes certain measures to ensure continued development in line with the objective of maintaining Norwegian communities on the archipelago.

Photo: Eva Grøndal, Grøndal Foto

4.2 The objective of maintaining Norwegian communities on the archipelago

People from different countries have always been drawn to Svalbard, which today contributes to making Longyearbyen a vibrant and diverse community. This is valuable. While the number of inhabitants has increased in recent years, the composition of the population has also changed. Today, the proportion of foreign nationals is around 36 per cent, while in 2009 and 2016 it was around 15 per cent and 26 per cent, respectively. Research, education and the tourism industry employ a wider range of nationalities than, for example, the mining industry. Therefore, this is a natural development. However, it must also be considered in relation to the fact that the Immigration Act does not apply to Svalbard. There is cause to monitor developments in the composition of the population. Longyearbyen fulfils the overall objective of Norwegian communities on the archipelago, and it is important to facilitate a good balance between Norwegian and foreign nationals.

A well-developed infrastructure, good provision of services, as well as a wealth of cultural and recreational offerings are factors that can make settlement in Longyearbyen an attractive prospect. Figures from Statistics Norway (report 2023/36) indicate that, on the whole, living conditions in Svalbard appear to be somewhat above the average for communities on the mainland, although there is considerable variation between groups. It is also noted that the average duration of residence among Norwegians is decreasing. Figures from Statistics Norway (SSB 2023/36) illustrate that the median duration of residence for Norwegian nationals was 3.4 years as of January 2024. This is a decrease of more than 20 per cent since the previous white paper was presented. This development must partly be considered with reference to the downsizing of the mining operations, but may also be related to higher price and cost levels, partly as a result of two households. In 2022, residents from several foreign countries had a higher median duration of residence than Norwegians, especially Thai nationals, who also have the highest average duration of residence at more than 10 years. More knowledge is required about the conditions that affect the residential desirability in Longyearbyen. In order to monitor developments in Longyearbyen, the Government will consider conducting a survey on living conditions. Such surveys have been conducted in the past and will provide a useful basis for governance. It is important to have a strong Norwegian presence, including to ensure an effective and credible exercise of authority. Therefore, the Government will introduce incentives to render it more attractive for Norwegians to move to and remain in Svalbard.

The Government is committed to Longyearbyen remaining a good setting for those who live and work there. For example, foreign residents with no connection to the mainland have access to services in Longyearbyen, while their children will be entitled to a school place after three months of settlement. Foreign residents will also have access to other services, although persons with no connection to the mainland may be required to pay for services such as healthcare at Longyearbyen Hospital.

Access to benefits from the National Insurance Scheme will also vary. Persons who are insured under the National Insurance Scheme when they arrive in Svalbard will retain their insurance, regardless of whether or not they are Norwegian citizens. Other foreign nationals may be entitled to insurance if they are employed by a Norwegian employer.

It is the State that administers the National Insurance Scheme and, together with Longyearbyen Community Council, it largely facilitates the services offered in Longyearbyen. Considering recent years’ developments in terms of the demographic composition of Longyearbyen, the Government sees a need to distinguish to a greater extent between residents with a mainland connection and residents arriving directly from abroad. At present, the rate of employer’s National Insurance contributions in Svalbard is set at zero, while contributions from employees are 7.8 per cent. The Government will consider whether to introduce an employer’s National Insurance contribution for Norwegian employers that employ persons who become insured under the National Insurance Scheme through their employment. The Government will also consider whether persons who gain insurance through their employment should have a higher National Insurance contribution rate, and whether they should be entitled to accrue benefits such as child benefits and cash-for-care benefits. A similar distinction has already been established by requiring three years’ residence on the mainland for foreign nationals to be able to vote and stand for election in Longyearbyen.

At the same time, the Government is committed to ensuring orderly pay and working conditions for all employees in Longyearbyen, and will, by the end of 2024, present a proposal to make the Act relating to general application of collective agreements (the General Application Act) applicable to Svalbard. Based on a more detailed assessment of local development trends and needs, the Government will consider deferred implementation for parts of the archipelago. The Government will also consider other measures to promote a legitimate working life for employees and employers, such as formalising the requirement for public sector actors to ensure that pay and working conditions for employees comply with the applicable national collective agreement for the industry in question when entering into various types of agreements.

Population growth increases pressure on the provision of services, as well as on infrastructure such as energy, roads and water supply. Public sector actors fund and maintains a large part of the public infrastructure, including health, emergency preparedness and rescue services. Since 2016, one of the main challenges has been to protect the population of Longyearbyen from avalanches and to build avalanche-proof dwellings, replacing those that were lost or had to be demolished following the avalanches in 2015 and 2017. Recently, challenges related to energy transition, water supply and other infrastructure have become more pronounced. Investment and maintenance of such infrastructure is very costly. Parts of the infrastructure are currently funded by the residents of Longyearbyen in the form of municipal fees and charges, while other parts are funded by the central government through annual allocations.

Energy prices in Longyearbyen have increased significantly since the closure of the coal fired power plant and the transition to diesel as a source of energy. In the updated 2023 budget, the Storting therefore increased the allocation to Longyearbyen Community Council by NOK 50 million, based on a proposal from the Government, to contribute to reducing electricity prices. In the Revised National Budget for 2024, the Government proposed allocating an additional NOK 125 million for this purpose, as well as NOK 42 million for investments in infrastructure that strengthen redundancy and security of energy supply in Longyearbyen. At the same time, the Government proposed allocating NOK 3 million for state co-financing of a preliminary project to establish a reserve drinking water source in Longyearbyen. The Government will continue to assess the need for investments in critical infrastructure in Longyearbyen, including matters of financing.

The principle that no development shall be facilitated triggering the requirement for considerable investments in infrastructure, remains fixed. This entails that the scope of the housing stock shall not be expanded beyond the level prior to the avalanches in 2015 and 2017. However, in order to carry out necessary rehabilitation of the housing stock, property managers will need to have some excess inventory. Any replacement of dwellings should preferably be solved through transformation and densification rather than utilising undeveloped areas. These instructions, in conjunction with other frameworks for activity and the overall Svalbard policy goals, will contribute to determining the scope of action for commercial activities and community development in Longyearbyen.

4.3 Provision of services in Longyearbyen

4.3.1 Frameworks and instructions for the provision of services

In short, Longyearbyen can be described as a “robust family community” and has developed into a qualitatively good community with a provision of services adapted to the size and structure of the community within an environmentally sound framework. At the same time, the established policy is that Longyearbyen is not to be a cradle-to-grave community. A certain level of benefits has been facilitated in Longyearbyen, adapted to what has been necessary for a “robust family community” with residents who mainly reside in the community by virtue of their employment. For example, key acts such as the Act relating to social services in the labour and welfare administration (Social Services Act) do not apply to Svalbard, and health services are limited. The level of benefits available in Longyearbyen must be viewed in the context of the low taxation level that the Government will continue to facilitate, but is also a consequence of the fact that there is no requirement for a residence permit for foreign nationals who want to come to Svalbard. In conjunction with other framework conditions, this establishes clear guidelines for the level of service provision in Longyearbyen.

The Government is committed to ensuring that everyone who lives and works in Longyearbyen has opportunities and security during their time there. With a limited range of social and other services, adapted to a mainly working population, the established policy is that residents with a mainland connection will have to enquire with their home municipalities on the mainland should they have needs beyond the capacity of services offered locally, while residents without an association to the mainland will have to avail themselves to their home countries. Even a prolonged stay in Longyearbyen will not in itself provide an opportunity for residence on the mainland for foreign nationals. While Norwegian citizens can travel to the mainland for continued schooling and studies, and to their respective mainland municipalities to fulfil any needs for nursing and care services, foreign nationals without such an association do not have this option, apart from limited access to upper secondary education.

This can pose a challenge, not least for children born during their parents’ stay in Longyearbyen, where ties to their home country may have gradually weakened. It is important to emphasise that the responsibility in such cases lies with the parents. Emphasis must therefore be placed on ensuring that foreign nationals arriving in Longyearbyen are given good and targeted information about the legal and practical framework conditions that apply to residence in Svalbard, and that it is therefore important to maintain contact with their home country.

Services in Longyearbyen are provided by both central and local actors. Basic services are provided by Longyearbyen Community Council, Longyearbyen Hospital, the Governor of Svalbard and several other actors. Following the presentation of the white paper in 2016, it has been necessary to clarify some of the frameworks for the provision of services, for example by determining that children with more than minor and moderate needs for adapted education are not entitled to enrolment in school in Longyearbyen.

In order to maintain the frameworks for service provisions in Longyearbyen, it is important that all such decisions are in line with Svalbard policy. The established practice is therefore for the Governor of Svalbard to assist the mainland authorities in such matters. Accordingly, the Government will consider establishing regulations providing that the County Governor’s supervision of kindergarten operations and education in Longyearbyen shall be carried out in consultation with the Governor of Svalbard. The Government will also consider establishing regulations providing that appeals against individual administrative decisions concerning Longyearbyen Community Council’s obligations under the regulations relating to kindergarten activities and primary and lower secondary education, etc. in Longyearbyen, together with the County Governor’s proposed decision, shall be submitted to the Governor of Svalbard for comment.

4.3.2 Health and other services

Through the University Hospital of North Norway (UNN Tromsø), the Northern Norway Regional Health Authority is responsible for public health services in Svalbard. The University Hospital of North Norway Health Trust – Longyearbyen Hospital (UNN Longyearbyen) provides necessary health services. Health services in Svalbard are not structured in the same manner as on the mainland, where the municipalities are required to provide local health and care services. Longyearbyen Community Council has no such responsibility.

Longyearbyen is not a cradle-to-grave community. Therefore, no care services or other long-term services are provided, such as homecare, stays in nursing homes, respite care, practical assistance, etc. Individuals who require such services must therefore receive them in their home municipalities or in their home countries.

Longyearbyen Hospital has six beds for hospitalisation and observation. The hospital is on emergency standby 24/7. Some medical treatment and minor surgical procedures can usually be performed at the outpatient clinic, while patients who require assessment or referral to a specialist other than those offered by Longyearbyen Hospital will have to receive such services either on the mainland or in their home countries. Emergency medical services are also provided to travellers. In Barentsburg, the mining company Trust Arktikugol has an occupational health service, but Longyearbyen Hospital contributes when required.

Emergency medical services in Svalbard consist of an emergency medical communication centre (operated by AMK Tromsø), urgent care, ambulance services, off-road rescue in cooperation with volunteers, rescue helicopter services organised via and in cooperation with the Governor of Svalbard and air ambulance to the mainland. Longyearbyen Hospital cooperates with UNN Tromsø by, among other things, using a video-based system for emergency medical interaction. This enables medical consultation and guidance from UNN Tromsø to personnel at Longyearbyen Hospital.

Longyearbyen Hospital provides some types of services that are not normally provided in hospitals, including services comparable to primary healthcare on the mainland. This includes general practitioner services, midwifery and public health nursing and physiotherapy services. The hospital also has a dental service, but no permanent psychologist service.

Expenses for treatment and user fees for health services provided at Longyearbyen Hospital are largely covered in accordance with the rules and rates applicable on the mainland. In cases where the patient is neither covered by the Norwegian National Insurance Scheme nor the Nordic Convention on Social Security during their stay in Svalbard, the patient must either have insurance that covers the expenses or pay out of pocket.

4.3.3 Children and young people

The number of children and young people has increased in step with the development of Longyearbyen as a family community. While there were 372 children and young people aged 0–19 years in Longyearbyen in 2008, the corresponding number was 464 in 2023.

Longyearbyen has two kindergartens, both of which are run by Longyearbyen Community Council. The kindergartens in Longyearbyen offer kindergarten places to children of permanent residents who intend to stay in Svalbard for more than six months. According to the Norwegian Directorate for Education and Training, as of 15 December 2023 there were 74 children in kindergartens in Longyearbyen, 20 of whom were speakers of minority languages (i.e., with a mother tongue other than Norwegian, Sámi, Danish, Swedish and English). As of 15 December 2022, the number of children in kindergartens was 88, while in 2015 the corresponding number was 107.

Longyearbyen Community Council is the owner of the school and is responsible for the provision of education in Longyearbyen. Longyearbyen School has a primary and lower secondary school, a section for upper secondary education and training, as well as an after-school programme and a cultural school. The school has a scheme for pupils from the mainland limited to eight pupils who have completed their first year of upper secondary school (Vg1) on the mainland. In the 2023–2024 school year, the school has 219 pupils in primary and lower secondary school and a total of 33 pupils in upper secondary education.

Longyearbyen School, Section for Upper Secondary Education and Training offers the education programmes Specialisation in General Studies and Building and Construction. From the 2024–2025 school year, the school will establish a new education programme for Sales, Service and Tourism, while the education programme for Building and Construction will be discontinued. Norwegian pupils in Svalbard can apply for other education services in their home county. Norwegian and foreign pupils admitted to Longyearbyen School’s section for upper secondary education and training can also apply for upper secondary education and training in Troms and Finnmark county authorities if Longyearbyen School is unable to provide their preferred programme.

Troms County Authority is also responsible for administering vocational training in companies in Svalbard on behalf of Longyearbyen Community Council, and the apprenticeship period can be completed both in Svalbard and on the mainland. However, foreign pupils must be admitted to Longyearbyen School before they can apply for an apprenticeship.

The County Governor of Troms and Finnmark oversees kindergarten operations and education, in consultation with the Governor of Svalbard. As mentioned above in section 4.3.1, the Government will consider establishing the Governor of Svalbard’s role in inspection and appeal cases in this topic area in regulations.

The legislation governing schools and kindergartens in Longyearbyen is described in more detail in section 2.3.10. The previous rules resulted in demanding considerations for Longyearbyen Community Council in terms of both what duties are actually incumbent on the Community Council and what the individual pupil is entitled to. Therefore, it has been necessary to clarify the regulations. The Regulations relating to primary, lower secondary and upper secondary education in Longyearbyen now stipulate that children with more than minor and moderate needs for adapted education are not entitled to a school place in Longyearbyen. This is a clarification that reflects the broader provision of services in Longyearbyen, where children whose needs exceed the capacity of available services will not receive services corresponding to those in mainland municipalities. This clarification also establishes the current framework for the available education services in Longyearbyen. This entails an instruction that the provision of services is not to be expanded.

The Government emphasises once more that the low tax level and the fact that immigration legislation does not apply to Svalbard create unique framework conditions for the local community in Longyearbyen. Longyearbyen is not intended to be a cradle-to-grave community, and the aforementioned framework conditions are scaled for the services that are to be provided, and thus also for the expectations that residents may have, e.g., for adapted services for children and young people. This entails that Longyearbyen Community Council is not to provide benefits that have a clear social-policy character.

The Government has noted that the Longyearbyen Youth Council wants to amend the Svalbard Taxation Act to make it possible to take odd jobs without having to pay income tax. The Government will investigate a scheme which makes it possible for young people in Svalbard to earn small sums without having to pay income tax.

4.3.4 Svalbard Science Centre and Svalbard Folk High School

Svalbard Science Centre opened in 2005, and it is the main arena for education and research in Longyearbyen. In addition to being a major workplace, the Science Centre is used as a venue for the local population in various settings, including academic lectures and events. Svalbard Museum is also located in the Science Centre.

Svalbard Folk High School was opened in the autumn of 2019, and is owned by YMCA-YWCA of Norway jointly with Longyearbyen Community Council. The school initially operated at reduced capacity in temporary premises, but in February 2023 the school moved into a new building at Sjøskrenten. The school is approved for 125 pupils and has eight different programmes, all of which relate to the unique nature and/or cultural life in Svalbard. The Folk High School has approximately 20 employees in the 2023–2024 school year.

4.3.5 Cultural activity

It is important that the inhabitants of Svalbard enjoy broad and varied access to high-quality culture, as is the case in the rest of the country. A well-functioning cultural life contributes to quality of life and the desirability of Longyearbyen as a place of residence. Culture can also make important contributions to tourism, both in the form of cultural expertise and cultural content in tourism products.

Culture and sports are strong focal points in Longyearbyen. Although institutionalised cultural offerings are naturally somewhat limited, Longyearbyen has an extensive cultural life. Offerings include both professional organisations and volunteer activities in most areas of the cultural sector.

Longyearbyen Cultural Centre holds both a cinema and stage. Galleri Svalbard hosts permanent and temporary art exhibitions. The gallery also offers a residence for visiting artists. Longyearbyen has a public library, and Svalbard Museum displays exhibits from Svalbard’s culture and history to the present day.

The Northern Norwegian Art Museum has established an exhibition arena for visual art, which since 2022 has been located in new and expanded premises in the Nordover Art Centre in central Longyearbyen. The initiative is a collaborative project between Longyearbyen Community Council and the Northern Norwegian Art Museum.

In autumn 2016, the Fritt Ord Foundation, the former Ministry of Culture and Sparebank1 Northern Norway established the Artica Svalbard Foundation. The purpose of the foundation is, among other things, to facilitate art and cultural activities in Svalbard, develop the Norwegian cultural sector and enhance the cultural industry in Svalbard. Artica Svalbard has an artist’s workshop and artist’s residence in Longyearbyen, where artists from all genres create and disseminate art. The foundation receives operating support from the Ministry of Culture and Equality.

The Cultural School offers children and young people academically rigorous cultural education in various fields. There are a number of clubs and associations covering a wide range of activities, including several sports clubs. Sports offerings include a multi-purpose hall, swimming pool, downhill ski slope and preparation of cross-country ski trails.

Svalbard Church is located in Longyearbyen and is part of the Church of Norway. The church is an important culture-bearing institution in the local community, and a cultural actor as well. The church serves a unifying function and it plays a central role in emergency preparedness.

Photo: Tommy Dahl Markussen

4.4 Essential infrastructure in Longyearbyen

4.4.1 Basic features – frameworks and guidelines

In an Arctic context, Longyearbyen has a well-developed and modern infrastructure in several areas. Significant national interests are associated with Svalbard, indicating a strong government involvement. An appropriate level of infrastructure is a prerequisite for commercial activity and value creation, security and emergency preparedness, as well as for good social development. The sum of these factors determines Longyearbyen’s attractiveness as a place to live and work. The physical infrastructure of Longyearbyen thereby contributes to maintaining Norwegian communities on the archipelago.

In accordance with the Svalbard Act, Longyearbyen Community Council is responsible for infrastructure in Longyearbyen when such responsibility is not assigned to the State or other actors. Thereby, the Community Council is responsible for the primary segment of the harbour, roads, water and power supply, while Avinor owns and operates the airport. The Government is determined to ensure that the infrastructure is used for purposes that support the objectives of Svalbard policy, and sections 4.4.3 and 4.4.5 provide certain instructions for the use of the airport and harbour facilities.

Although the infrastructure in Longyearbyen is at a developed level in an Arctic context, there is still a significant maintenance backlog, for example in the power supply, water supply and housing stock. This, in turn, reflects the importance of not facilitating a development that triggers the need for major new investments in infrastructure. In recent years, Longyearbyen Community Council has been allocated funds to reduce the maintenance backlog, including during COVID-19.

Svalbard is experiencing some of the fastest impacts of climate change in the world. This renders the physical infrastructure more vulnerable to climate-related events, and climate change creates a need for upgrading and adaptation. Since the avalanches in 2015 and 2017, considerable funds have therefore been spent on protection in Longyearbyen, as well as building new dwellings capable of withstanding avalanches. As it is not desirable for Longyearbyen to grow beyond its current level, the housing stock will not be expanded beyond the level prior to these avalanches.

Establishing, operating and maintaining infrastructure in the Arctic is challenging and costly. The infrastructure in Longyearbyen was designed to serve a mining community, not the local community as it has developed, with a significant number of visitors throughout much of the year. Tourism activity in Longyearbyen is leading to increased wear and tear on an already strained infrastructure, resulting in higher maintenance costs and increased need for investment. Therefore, the Government will prepare a proposal for legislation governing visitor fees for Longyearbyen. This will be a pilot project. The revenue generated from such visitor fees shall be designated for expenditure on infrastructure and other public services that are a prerequisite for tourism in Longyearbyen, and part of this revenue shall be allocated to Longyearbyen Community Council.

4.4.2 Water supply

Longyearbyen Community Council is responsible for Longyearbyen Waterworks, which supplies the town with drinking water. The waterworks currently has two sources: Isdammen and Steintippdalselva. During the winter season, there is no reserve source available.

There are challenges related to the sources and condition of the waterworks, which are amplified by climate change, among other things. The infrastructure associated with the waterworks is vulnerable to natural events, acute pollution and deliberate acts. Water is essential for almost all functions in a society, including the provision of basic services. Unlike the municipalities on the mainland, Longyearbyen is not connected to a larger system. There is therefore a need to assess the robustness and reserve solutions in the current system, which has been highlighted by the Total Preparedness Commission, among others. In 2022, the Norwegian Food Safety Authority issued a report that also confirmed this assessment.

Longyearbyen Community Council is investigating a future reserve solution for Longyearbyen’s water supply. Preliminary assessments indicate seawater as the most relevant alternative raw water source in a new reserve drinking water solution. Water supply in Longyearbyen represents critical infrastructure. Therefore, the work of investigating future reserve solutions for water supply is important and must be prioritised. As noted in section 4.2 above, the Government proposed in the Revised National Budget for 2024 to allocate NOK 3 million for government co-financing of a preliminary project to establish a drinking water source in Longyearbyen.

4.4.3 Port facilities

Svalbard is dependent on good port facilities for the shipping of goods to and from the archipelago. Longyearbyen has three quays, Gamlekaia and Bykaia, which are owned by Longyearbyen Community Council, and Kullkaia, which is owned by Store Norske Spitsbergen Kulkompani. In addition, Turistkaia, a floating landing stage, has been established and is also owned by the Community Council. Capacity at the quays in Longyearbyen is limited. Most of the traffic is serviced over a short season, which limits the time each ship spends at the quay.

The previous Svalbard white paper noted the need for expanded port capacity in Longyearbyen. Expanded port capacity in Longyearbyen was discussed in the context of the facilitation of increased passenger traffic in Report to the Storting (white paper) No. 33 (2016–2017) National Transport Plan 2018–2029.

Since the last white paper was presented, the trend has been a significant increase in maritime activity around Svalbard. The growth in maritime activity is also reflected in the figures for passengers visiting the Port of Longyearbyen on cruise ships. Figures from the Norwegian Coastal Administration show that Longyearbyen was Norway’s third most visited cruise destination in 2023, measured in number of calls.

Report to the Storting (white paper) No. 20 (2020–2021) National Transport Plan 2022–2033 states that the needs related to new port facilities in Longyearbyen have changed. For example, it is not relevant to facilitate port facilities to support overseas cruise ships. On this basis, the Norwegian Coastal Administration will assess current needs before conducting a new assessment of the scope, approach and timeline for a possible government-led port project in Longyearbyen. Should it emerge that there is a basis for proceeding with the project, the Norwegian Coastal Administration will be able to propose specific measures as comments to the National Transport Plan 2029–2040.

The Government is determined to ensure that infrastructure is used for purposes supporting the objectives of Svalbard policy. Within the framework of limited capacity, it is therefore important that government vessels, such as the Governor of Svalbard’s service vessels and the vessels of the Norwegian Coast Guard, are given priority for berthing. The same applies to vessels of benefit to society such as postal and supply ships. In terms of sea-based tourism, locally-based activities in the Isfjord area should be prioritised in the use of port facilities in line with the Government’s guidelines related to tourism.

4.4.4 Postal services

The Norwegian postal service, Posten Bring AS (Posten), provides a wide range of postal and goods delivery services to Svalbard. The transport of postal deliveries by Posten that fall under the delivery obligation is currently carried out by chartered aircraft, scheduled flights and cargo ships.

Section 10 of the Postal Services Act stipulates that postal services subject to a delivery obligation shall be cost-oriented and affordably priced. Since 2004, light goods to and from Svalbard have been subject to a surcharge. In 2023, this surcharge was lifted for the Norgespakke Small and Norgespakke Large services, as such parcels are now sent by cargo ship to and from Svalbard.

4.4.5 Svalbard Airport

Svalbard Airport Longyear is the most important connection between the mainland and the archipelago. The airport is crucial for communication and the transport of goods and people.

The airport became operational in 1975 and was expanded with a new terminal in 2007. In 2017, the airport’s status was changed from international to national, which means, among other things, that scheduled flights cannot be established directly to Svalbard from abroad. Charter traffic was not affected by this restructuring.

The increased activity in and around Svalbard is reflected in the number of passengers at the airport in the years leading up to the pandemic, as illustrated in Table 5.1. The airport’s infrastructure and operational concept are scaled to handle one aircraft at a time, and capacity is set at six daily arrivals and departures.

As a result of the heavy load caused by the simultaneous arrival of multiple aircraft, specific time slots have been allocated for take-offs and landings that must be adhered to. In light of the limited capacity, it is important to ensure that the airport is utilised as much as possible for purposes supporting the goals of Svalbard policy. At times, it has been difficult for the local population and businesses to access flights at a reasonable cost. However, the Government finds that the flight routes to/from Svalbard function satisfactorily on commercial terms and does not believe there is a need for the State to provide public funding for the flight routes to/from Svalbard. At the same time, the Government finds that air traffic supporting the local population and businesses must be prioritised. Furthermore, it is not desirable for the airport to be used as a hub for connecting flights northwards in support of activities taking place in these areas.

Identity control and control of movement of goods to and from the archipelago were introduced in Svalbard in 2022. The Governor of Svalbard conducts identity control at Svalbard Airport in temporary premises. Any expansion of identity controls and physical control of the movement of goods at the airport presupposes an expansion of the premises at the airport for such purposes.

4.5 Commercial activity

4.5.1 Frameworks and instructions for commercial activity

Natural advantages are the reason why there is activity in Svalbard today. Coal mining contributed to the emergence of the present-day communities in Svalbard, and society has developed around this activity. Since the 1990s, the authorities have worked to facilitate a more diverse business community on the archipelago. In this context, the authorities emphasised that new businesses should mainly be operating in industries that benefit from Svalbard’s distinctive nature or location. To ensure a stable society over time, it was also emphasised that the new businesses ought to create year-round jobs that support the Svalbard policy objectives.

At the time the previous white paper was presented, there was uncertainty regarding the consequences of the closure of activities in Svea and Lunckefjell for the Longyearbyen community. The authorities continued their already stated business policy within the same framework as before – that the businesses should have natural advantages in Svalbard and contribute to year-round jobs that support the objective of a Norwegian community in Longyearbyen. The business community responded well to the restructuring measures enunciated in the previous white paper. Longyearbyen has developed into a community with diverse activity in the tourism, building and construction, service, retail and public administrations sectors. Furthermore, Longyearbyen has a high level of activity in research and education, as well as a wide range of available activities. The long-term policy to transition Longyearbyen away from a one-sided industrial society has proved successful.

Commercial activity in Svalbard has changed over time. The same applies to the framework for activities. Global warming is one of the greatest challenges of our time, and we recognise that Svalbard is one of the places in the world experiencing the fastest impacts of climate change. The changes this will bring about in terms of sea ice extent, Arctic species and the vulnerability of ecosystems will affect activity in and around Svalbard both at present and in the years to come.

In order to maintain a varied and stable business community in Svalbard, businesses must recognise the changing framework conditions. Commercial activities that alleviate pressure on infrastructure, reduce impact on the natural environment, adopt new green solutions, and contribute in a positive manner to the local community are desirable. For parts of the business community, the unique natural and cultural values of Svalbard are the very foundation of their business. A prerequisite for the future development of commercial activity in Longyearbyen is that the activity preserves the unique natural wilderness, in line with the environmental objectives set for Svalbard.

Climate change and the development towards a low-carbon society may lead to changes in demand and the customer base for tourism products, transport services and other energy- and emissions-intensive commercial activities. Changes in market awareness and increased attention to individual environmental and climate impact also compel businesses to consider these aspects in their development. This creates a need for restructuring and adaptation to a commercial activity with a lower climate and environmental footprint. Actors that develop their business in a more sustainable direction, and are able to both prove and highlight this, will be more competitive in the future.

4.5.2 Tourism

Svalbard’s special nature and wildlife have made it an attractive tourist destination. Since 2015, Longyearbyen has seen a gradual growth in tourism-related industries such as lodging and food service activities, transport, experiences and communication. The tourism industry has become one of the most important industries in Svalbard.

The tourism industry is often divided into the two main categories of land-based tourism and sea-based tourism, of which the latter is divided into expedition cruises and overseas cruises. Land-based tourism activity largely consists of activities and experience products concentrated in Longyearbyen and areas accessible within a day trip from the community. Much of the activity consists of experiences related to nature and the cultural heritage sites found in these areas. Overseas cruise ships are usually larger vessels with a high number of passengers. Such ships have a number of amenities on board and are characterised by relatively short berth times. Expedition cruises have a long history in Svalbard and are characterised by smaller vessels with a turn-around port in Longyearbyen. This means that passengers on expedition ships arrive in Longyearbyen by plane. While there has traditionally been a predominance of overseas cruise passengers, the composition has changed in recent years. The expedition cruise segment has grown and now accounts for a significant proportion of cruise tourism in Svalbard.

Figures from the Norwegian Coastal Administration show that Longyearbyen was Norway’s third most visited cruise destination in 2023, measured in number of calls. When the overseas cruise ships arrive in Longyearbyen, a large number of travellers disembark at the same time. Although some tourists pay for experiences in Longyearbyen while the cruise ship is docked, there has been a perception that tourists on overseas ships contribute less to local value creation than their expedition cruise counterparts. In 2019, Visit Svalbard and AECO, assisted by research and consulting agency Epinion, collaborated to investigate cruise operator spending in Svalbard. The study found that expedition cruises have an average local value creation of NOK 4,235 per passenger, while overseas cruise ships have a corresponding average value creation of NOK 810. Expedition cruise passengers contribute to 5.2 times more local value creation than overseas cruise passengers. The total revenue from cruise traffic to Svalbard in 2018 was estimated at NOK 110 million.

Overall cruise activity is on the rise, putting pressure on the environment, emergency preparedness and infrastructure. For emergency preparedness reasons, the Government is proposing to introduce a limit on the number of persons on board cruise ships in the territorial waters around Svalbard. The Government will also consider limiting the number of ships sailing there. For more information on the measure, see section 6.6.

Tourism activity is highly visible in Longyearbyen. Responsible and competent operators have contributed to a positive development of the tourism industry. Since the last Svalbard report was presented there has been a significant increase in activity levels. Lodging capacity has increased and new experience products have been developed. Tourism activity in Svalbard is still characterised by seasonal variations. However, systematic efforts have been made over time to establish attractive offerings during the shoulder seasons in order to harness the available capacity and contribute to year-round jobs in the tourism industry. A diversity of local actors has emerged and the product range is more varied than before. Production and design from Svalbard also have intrinsic value in a branding context. This is seen in clothing, jewellery and food and beverages.

A fundamental prerequisite for the growth of tourism activity is well-functioning infrastructure and other public services. Increased activity leads to increased wear and tear on an already strained infrastructure, resulting in higher maintenance costs and a need for investment. Therefore, the Government will prepare a proposal for legislation governing visitor fees. Part of the revenue will be allocated to Longyearbyen Community Council. See section 4.4.1 for further information.

Svalbard’s natural advantages in a tourism context are changing relatively rapidly. At the same time as climate change is affecting the scope of what is achievable in terms of tourism activity, the increase in the number of travellers to Svalbard is impacting the environment. Therefore, it is necessary to monitor the development of activity in and around Svalbard, as well as the impact of climate change on nature and wildlife. It is particularly important to protect vulnerable nature so that the unique resource base in which the tourism industry grounds many of its products is safeguarded to the greatest extent possible. This will lay the foundation for the tourism industry to be able to continue offering attractive experiences in the future.

In 2015, Visit Svalbard, in collaboration with local tourism operators, developed a Svalbard Master Plan for tourism, which was revised in 2022. The revised masterplan emphasises increased value creation, as opposed to the previous goal of volume growth. Efforts are now focused on developing quality offerings that attract the right guests, to the right places, at the right time and at the right volume. Longyearbyen is designated as one of Norway’s sustainable destinations through Innovation Norway’s national labelling scheme. This labelling scheme is a tool for systematising sustainability efforts related to a destination. Businesses and destinations that invest in emission reductions and eco-labelling are not only doing their part for the community, but are also helping to secure their own future.

In 2020, a major regulatory work was initiated for Svalbard, including a number of proposed amendments to the Svalbard Environmental Protection Act and accompanying regulations. The amendments to the environmental legislation will contribute to the objective of making Svalbard one of the world’s best-managed wilderness areas.

Travelling outside the local communities is associated with risks that increase with distance from Longyearbyen. To reduce the risk, activities are being organised in Longyearbyen and in the Isfjord area. For individual travellers, i.e., visitors not participating in an organised tour, the Government proposes in the new Regulations relating to field safety that the requirement of notifying of travel takes effect once persons travel outside the Isfjord area (Management Area 10). This will also apply to students and others with short-term stays in Svalbard. Permanent residents are required to report travels in the large, protected areas, as is currently the case. A guide certification scheme is also being developed which will contribute to safer and more environmentally friendly travel in the field. This scheme will also contribute to enhancing competence in the tourism industry and further raise the level of knowledge that forms the basis for developing the products on offer.

Map: Anders Skoglund, Norwegian Polar Institute

Changes that are now being made will contribute to more stable framework conditions for the tourism industry through clear rules for what is permissible.

Going forward, the Government wants to facilitate the sustainable development of the tourism industry within the framework of the environmental objectives, mainly concentrated in the local communities and the area around Isfjorden. The current framework entails that further development of the tourism industry cannot take place in the form of growth in volume, but rather in the form of increased value creation.

4.5.3 Space ventures in Svalbard

Space ventures are an important part of the basis for livelihoods in Svalbard. At the same time, space activities in Svalbard are also a prerequisite for societal development on the mainland, and are of immense importance for a number of services in Europe and the rest of the world. Space activity in Svalbard is an important national contribution to international cooperation. In the coming years, new national, European and commercial satellites are expected to provide entirely new opportunities to observe, communicate and develop new services based on satellite data for the areas in and around Svalbard. This will provide opportunities for new and increased activity, as well as contribute to sustainability and emergency preparedness.

SvalSat

Through a long-term effort, the Svalbard Satellite Station (SvalSat) has developed into the world’s largest commercial satellite station for polar orbiting satellites. Svalsat is located on Platåberget outside Longyearbyen and is owned and operated by Kongsberg Satellite Services (KSAT). The investment in Svalsat has made KSAT a world leader in data downloading and satellite control.

Photo: KSAT – Svalbard Satellite Services

SvalSat is a prerequisite for KSAT to deliver services to Norwegian and European initiatives, as well as some of the world’s largest space agencies and commercial actors.

SvalSat has ambitions to expand by 10–15 antennas annually in the coming years. This development may result in positive externalities for the local community, including long-term and stable jobs, the purchase of services, competence and personnel from suppliers in Longyearbyen, and the facilitation of research, innovation and development of new solutions in the Arctic in collaboration with local actors and businesses. Expansion is subject to authorisation from the relevant authorities.

KSAT has chosen to explore whether alternative energy sources work in the Arctic. Solar cells have now been installed on the antenna foundations, and plans are underway to establish a solar farm that will reduce the carbon footprint of the station.

4.5.4 Fisheries activities

Fish resources are currently regulated through a comprehensive management and control system, including harvesting and participation regulations. This also applies to fisheries in the areas around Svalbard. Whether or not it is possible to increase activity depends on the fish stock status at any given time. It is crucial that marine resources are managed in such a manner that they can continue to be harvested in the future.

Traditionally, there has been no commercial landing and reception of fish and seafood in Svalbard. The seafood that has been sold has therefore mainly come from the mainland.

The landing and sale of seafood on the mainland is subject to detailed regulations, and in 2015–2016 the Food Act and Marine Resources Act were made applicable to Svalbard. The Norwegian Food Safety Authority and the Directorate of Fisheries are the competent supervisory authorities.

The Landing Regulations, which stipulate requirements for registering information about the catch for use in resource control and quota control, were introduced in Svalbard on 1 September 2018.

The Fish Sales Act applies on the mainland of Norway and in the sea areas around Svalbard, but not on the land territory of Svalbard. In addition, Norwegian fishermen, regardless of where they land the raw material, are required to sell first-hand through a fishermen’s sales organisation.

There are significant limitations in the basic infrastructure on Svalbard, in addition to the fact that Svalbard falls outside the scope of the EEA Agreement, cf. section 2.3.3. The Government will not implement special measures for the establishment of a fishing industry in Svalbard.

4.5.5 Mineral activity

Mineral activity in Svalbard began in the early 1900s with the extraction of coal. Today, there are two coal mines left in Svalbard. Store Norske runs the coal operations in Mine 7 in Longyearbyen, while coal operations in Barentsburg are run by Trust Arktikugol. Previously, there were also operations in Ny-Ålesund, Pyramiden, Svea and Lunckefjell. In 2017, the Storting decided that Store Norske’s coal operations in Svea and Lunckefjell were to be discontinued and the area cleaned. The clean-up project in Svea and Lunckefjell was completed in autumn 2023. Store Norske’s mining operations in Svalbard have been gradually reduced in recent years and operations in Mine 7 are scheduled to cease in the summer of 2025.

4.5.6 Petroleum activity

The marine areas surrounding Svalbard have not been opened for petroleum activity and no licences have been granted for exploration drilling in the territorial sea around Svalbard. Furthermore, since the Svalbard Environmental Protection Act entered into force in 2002, no licences have been granted for onshore exploration drilling. The Government will continue the current policy regarding petroleum activities on land and in the territorial sea around Svalbard.

4.6 Framework conditions for future commercial activity

The purpose of commercial activity in Svalbard is to support the Svalbard policy objectives. This entails that the activity should contribute to achieving the objective of a Norwegian community on the archipelago and also safeguard Svalbard’s distinctive natural wilderness. At the same time, it is expensive to facilitate activity and infrastructure in the Arctic, and it is therefore not desirable for the community to continue to grow or develop in a manner that requires greater investment in infrastructure or expansion of services. This means that further development of commercial activity cannot take place in the form of growth in volume, but rather in the form of increased value creation.

Predictability is key to facilitating the desired commercial activity on the archipelago. Several factors affect companies’ competitiveness, such as research and education policy, innovation policy, competition policy and sector-specific policy. In addition, there are the more specific framework conditions for activity such as energy prices, the housing market, access to competence, digital and physical infrastructure and communication. For businesses, it is important that the framework conditions are as clear and predictable as possible. In light of the development trends in Longyearbyen, the Government wishes to contribute to clarifying the framework conditions and creating greater predictability for commercial activity in line with the Svalbard policy objectives.

4.6.1 Housing

Access to housing is a fundamental prerequisite for being able to live and work in Longyearbyen. Following the avalanches in 2015 and 2017, a number of dwellings vulnerable to avalanches were demolished and work began on replacing these dwellings. The purpose of the housing policy is to facilitate the development of Longyearbyen within the objectives and framework of Svalbard policy. It is not an aim for the Longyearbyen community to grow, and it is therefore not desirable to facilitate growth in the housing stock beyond the levels prior to the avalanches. At the same time, the Government will proceed with efforts in order to improve the quality of housing in Longyearbyen.

The frameworks for the governance of Svalbard differ somewhat from those on the mainland. The same applies to the housing market. Currently, the public sector owns more than 70 per cent of dwellings in Longyearbyen, while the rest are privately owned. The considerable public ownership is partly historically grounded, dating back to the company town era. However, it is also the result of a deliberate development. Limiting the number of dwellings will determine the population size and level of activity. This entails that the ownership of dwellings and the management of access thereto is an important means of contributing to the development of Longyearbyen in accordance with the objectives of Svalbard policy.

The Longyearbyen housing stock shall not increase beyond the 2015 and 2017 pre-avalanche levels. However, in order to carry out the necessary rehabilitation of the housing stock, property managers will need to have some excess inventory. In addition, there may be a need to establish temporary accommodation to house craftsmen, etc. in cases where this cannot be solved by using short-term rental of existing housing stock. In such circumstances, this should be carried out under the auspices of the government property managers in Longyearbyen. When replacing dwellings exposed to landslides and avalanches, the Government is seeking to ensure that the number of family dwellings is not reduced.

Property management – the actors

Following the previous white paper, efforts were made to consolidate the management of the publicly owned housing stock in the company Store Norske Boliger (SNB) and the government property manager Statsbygg. This resulted in Statsbygg purchasing the dwellings of the University Centre in Svalbard AS (UNIS) in 2021. Efforts to transfer dwellings owned by the Community Council to Statsbygg are still ongoing. By acquiring the dwellings, Statsbygg will also be responsible for meeting the housing needs of UNIS and the Community Council.

Photo: Trond Isaksen, Statsbygg

There are currently 1,309 dwellings in Longyearbyen. At year-end 2023, SNB owned and managed around 500 residential units, or around 40 per cent of the dwellings in Longyearbyen. SNB is undertaking a concept study, which will form the basis for a long-term and comprehensive plan for climate proofing. energy efficiency and general raising of standards of the company’s dwellings. In parallel with this work, rehabilitation measures should be carried out on dwellings suitable. SNB currently owns 110 residential units at the Blåmyra dwellings in Longyearbyen, which accounts for approximately 20 per cent of the company’s dwellings. The dwellings at Blåmyra are well founded and therefore suitable for rehabilitation. In the Revised National Budget for 2024, the Government has proposed an allocation of NOK 130 million in loans to Store Norske, partly to enable the rehabilitation of the Blåmyra dwellings.

Statsbygg manages the housing stock for government employers in Longyearbyen, meeting their needs. Currently, this housing stock consists of approximately 260 dwellings. In the event of demand exceeding this Statsbygg will have to acquire dwellings in the rental market. Statsbygg currently rents more than 60 dwellings in addition to those owned by the company. Furthermore, Statsbygg is preparing a plan to raise the standard of the dwellings in its portfolio.

New construction/transformation

Since the avalanches in 2015 and 2017, NOK 275 million has been spent on avalanche protection in Longyearbyen. In 2018/2019, Statsbygg completed 60 new dwellings in Gruvedalen, and a total of around NOK 645 million will have been spent on new, avalanche-proof dwellings once Statsbygg has completed planned purchases and new constructions. Today, Longyearbyen has roughly the same number of dwellings as before the avalanches. However, the population has increased during this period, which must also be viewed in connection with the establishment of the Svalbard Folk High School. The Folk High School has provided its own student accommodation, which is not counted towards the ordinary housing stock.

There are currently few areas available for housing construction. Preparing areas for housing construction in Longyearbyen can be challenging, as such areas must have adequate protection against avalanches and have the possibility of foundation on rock. Investments in new infrastructure in connection with housing construction are also exceedingly costly in the Arctic. At the same time, new energy-efficient dwellings can contribute to reducing energy consumption and contribute to energy balance. Any replacement of dwellings must be undertaken through transformation and densification rather than utilising undeveloped areas. Both SNB and Statsbygg are drawing up plans for transformation and new construction. Longyearbyen Community Council is the planning authority for the Longyearbyen planning area. Through its ownership of the land in Longyearbyen, the central government, in consultation with Longyearbyen Community Council, will facilitate development within the framework of the goals of Svalbard policy.

Future property management

Central government control of housing is a key tool for guiding the future administration of Longyearbyen. Therefore, continued government ownership of a significant proportion of the housing stock is desirable. Property management shall also contribute to comprehensive pricing and value-preserving management and development of the housing stock. The housing stock must be of a quality and composition that is attractive to Norwegian employees and families. The Government will consider adjusting the criteria for registration in the Population Register of Svalbard so that documented residence in an approved dwelling becomes a condition for inclusion in the Population Register.

The limitation in the number of dwellings could lead to housing being perceived as a scarce resource. At the same time, the Government does not wish to facilitate housing development with the aim of meeting the housing needs of an ever-growing population in Longyearbyen. There is insufficient land, infrastructure and services available for such a development. Future activity must therefore take place within the established supply of housing.

Access to housing is linked to the need to be able to work and live in Longyearbyen. Therefore, the plan is for dwellings as a general rule to be rented out to employers and distributed to employees. Employers who are unable to offer housing to their employees must scale their activities accordingly.

With a limited housing supply, meeting the housing needs of the most important community actors in Longyearbyen, in both the public and private sectors, is an essential consideration. This means that there is and should be an allocation whereby important societal tasks are prioritised above others. Other publicly owned housing can be rented out to private employers who contribute to achieving the objectives of Svalbard policy.

4.6.2 Energy supply

According to the Svalbard Act, Longyearbyen Community Council is responsible for infrastructure when such responsibility is not assigned to the State or other actors. For many years, Store Norske was responsible for supplying energy to Longyearbyen. In 2002, in connection with the establishment of Longyearbyen Community Council, ownership of the cogeneration plant and responsibility for energy supply was transferred to Longyearbyen Community Council.

Until the establishment of the wholly owned limited company Svalbard Energi AS (SEAS) in January 2023, energy supply was organised as an integrated entity under Longyearbyen Community Council’s administration. The rationale for the establishment of SEAS in 2023 was a requirement in the 2022 Svalbard Budget for an accounting and organisational separation between the operation of energy supply and other activities in Longyearbyen Community Council. Thus, Longyearbyen Community Council is now exercising its responsibility for the energy supply in Longyearbyen via its ownership of SEAS.

Although the energy supply is owned and operated by SEAS, the Community Council sets the fees for the supply of electricity and heating to customers. In accordance with the Svalbard Act, the Community Council is permitted to set such fees as long as the responsibility for energy supply in Longyearbyen remains with the Council.

Until the autumn of 2023, Longyearbyen’s power supply was based on a coal-fired power plant from 1983. The condition and age of the coal-fired power plant, as well as uncertainty surrounding the future supply of coal as a fuel source, form the background against which efforts have been underway for several years to explore various alternative supply solutions. The energy system differs from solutions on the mainland, among other things due to Svalbard’s physical isolation and the fact that the Energy Act does not apply. Longyearbyen Community Council was commissioned by the Ministry of Justice and Public Security and the former Ministry of Petroleum and Energy (now Ministry of Energy) to submit an energy plan for Longyearbyen in 2023. Among the conditions of the plan were that renewable energy be phased in as quickly as possible with the aim that renewable solutions will constitute the main supply, and that the energy supply shall be in line with, and underpin, Norway’s climate targets for 2030 and 2050. The energy plan revealed, among other things, a need to establish an appropriate regulatory framework for energy supply in Longyearbyen. The Ministry of Energy is currently following up on this together with the Norwegian Water Resources and Energy Directorate.

As part of the follow-up of the energy plan, Longyearbyen Community Council decided to close down the coal-fired power plant in October 2023 followed by a switch to diesel heating. Since the transition, problems have arisen with the diesel generators, and in March 2024, generators from the Norwegian Armed Forces were put into use in order to ensure adequate security of supply. Diesel generators from the former mining operations in Lunckefjell will also be connected to the energy system to bolster security of supply.

Efforts to convert the energy supply in Longyearbyen from coal to more renewable energy sources are underway, but considerable work remains. As the owner, the central government is determined to explore the role of Store Norske in the local energy supply. Therefore, in November 2023, the Ministry of Trade, Industry and Fisheries tasked Store Norske with conducting an assessment of this in dialogue with the Community Council and other relevant actors. The Ministry of Trade, Industry and Fisheries received Store Norske’s assessments in December 2023. To follow up these assessments, the Government has commissioned Store Norske to conduct a concept study of the various alternatives for power supply in Longyearbyen and a condition assessment of existing infrastructure.

Electricity and heating are essential for maintaining the population and businesses in Longyearbyen. Vast distances to the mainland and climatic conditions entail that considerations such as security of supply and a stable energy supply must be given particular emphasis. The Government’s intention is for the State to take greater responsibility for power supply in Longyearbyen, e.g., through Store Norske, and that responsibility for power supply shall be clarified as soon as possible.

The cost of energy production has increased as a result of the transition from coal to diesel. In the updated 2023 budget, the Storting increased the allocation to Longyearbyen Community Council by NOK 50 million, based on a proposal from the Government, to contribute to reducing electricity prices in Longyearbyen. In the Revised National Budget for 2024, the Government proposed allocating an additional NOK 125 million to reduce electricity prices, as well as NOK 42 million for investments in infrastructure that strengthen redundancy and security of supply.

4.6.3 Communication

Considering the archipelago’s location and infrastructure, electronic communication services are particularly important in Svalbard. Communication links both internally in Svalbard and to the mainland are crucial for residents, businesses, research and higher education, public administration, civil protection and emergency preparedness, as well as for achieving the objectives of Svalbard policy.

The fibre-optic connection

Svalbard and the mainland are connected by two subsea fibre-optic cables. The fibre-optic cable connection constitutes critical infrastructure and provides the same level of electronic communication services as on the mainland due to the virtually unlimited capacity of the cables. The cables are owned and operated by Space Norway.

Various businesses and public sector actors use the fibre-optic cable connection for their communication needs, including the Svalbard Satellite Station (SvalSat). Avinor uses the fibre-optic cable connection for traffic management at Svalbard Airport.

The fibre-optic cable between Svalbard and the mainland has been operational since 2004 and has an estimated technical lifespan until the end of 2028. In the winter of 2022, there was a disruption of service to one of the two fibre-optic cables. The cable has since been repaired and is now operational. Other measures have also been implemented to bolster the existing fibre-optic network. Efforts are underway to find a new solution that provide a secure and robust communication link with good capacity to Svalbard.

In 2015, a fibre-optic connection was established between Ny-Ålesund and Longyearbyen. The connection is superfluos with two separate cables and is the world’s northernmost high-speed connection.

Broadband and mobile coverage and satellite-based communication

Mobile network coverage it possible to harness the benefits of mobile communication in a research context and improves safety in the field. The mobile networks in Svalbard have been upgraded to the latest mobile standard, entailing 5G access in large parts of Longyearbyen and Barentsburg. Ny-Ålesund received mobile coverage in 2023. An enhanced reserve satellite link has been operational for Svalbard since 2022. Services from low Earth orbit satellite systems will become available in Svalbard during 2024.

Management of critical communication infrastructure

The Norwegian Communications Authority (Nkom) supervises critical infrastructure in the electronic communications sector, including the fibre-optic cable connection between Svalbard and the mainland.

Satellite activities in Svalbard are particularly regulated and Nkom is responsible for supervising satellite stations in Svalbard, including SvalSat. The supervisory activities are to ensure that the establishment and use of satellite ground stations in Svalbard take place within the framework of the provisions of the Regulations relating to the establishment, operation and use of ground stations for satellites in Svalbard. The supervisory regime has been developed and enhanced in recent years.

4.6.4 Access to labour and competence

With some exceptions, the Working Environment Act also applies to Svalbard. A safe and legitimate labour market is important in order to protect employees against health hazards and exploitation, and also makes a significant contribution towards a sustainable and value-creating business sector. The Norwegian Labour Inspection Authority supervises the legislation governing working environment and safety in Svalbard. The agency is tasked with facilitating and following up on enterprises maintaining high standards for health, safety and working environment. In addition, the Norwegian Labour Inspection Authority works to counteract censurable conditions and social dumping.

Sufficient access to suitable competence is crucial for enterprises’ ability to operate efficiently and create value. Knowledge and competence are significant competitive factors in the business sector. The business sector may experience challenges in recruiting employees with suitable competence, the reasons for this being complex. Important factors may be linked to limited mobility in the workforce, a limited labour market, small specialist environments and vast distances. Challenges related to access to labour and competence can adversely impact innovation and technology development in enterprises, which in turn can affect value creation.

Access to labour is affected by the salary levels offered by the various enterprises. To ensure that the business sector in Svalbard has adequate access to labour, it is therefore important to ensure satisfactory working conditions in the various industries. Good working conditions are also an important element in ensuring a socially sustainable business sector.

The purpose of the general application of collective agreements is to ensure that foreign employees receive pay and working conditions that are equivalent to those enjoyed by their Norwegian counterparts, and to facilitate fair competition in the Norwegian labour market. Therefore, the general application scheme is an important measure to counteract social dumping and work-related crime. The Tariff Board may, at the request of one of the parties to a nationwide collective agreement, decide that the collective agreement shall apply in whole or in part to all employees who perform work within the scope of the collective agreement, if this is necessary to achieve the purpose of the Act.

Based on developments in the business sector and labour market and the importance of ensuring a legitimate and well-functioning working life, the Government will present a proposal to make the General Application Act applicable to Svalbard by the end of 2024. Based on a more detailed assessment of local development trends and needs, the Government will consider deferred implementation for parts of the archipelago. The Government will also consider other measures to promote a legitimate labour market, such as regulating public contracting authorities’ requirements for pay and working conditions based on the model of the Regulations relating to pay and working conditions in public contracts.

4.6.5 Network of policy instruments

The nationwide policy instruments and schemes of Innovation Norway and the Research Council of Norway are available to enterprises in Svalbard. However, Svalbard does not have access to county authority funds. In 2022, a special business-oriented initiative was launched in Svalbard for the restructuring of the business sector, modelled on regional policy instruments. Longyearbyen Community Council manages the project. At the request of the Community Council, the launch of the initiative has been postponed until 2025 pending a new business plan.

The Research Council of Norway’s Project Bank states that NOK 3.8 million has been allocated to the Framsteg Longyearbyen [Progress Longyearbyen] project from Research-based Regional Innovation (FORREGION) funds for the period 2021–2025. The project will stimulate sustainable restructuring and development, as well as stabilise activity levels in the business sector.

Innovation Norway has an earmarked initiative for business measures in Svalbard that aims to mobilise and support projects in Svalbard based on the model of rural and regional policy instruments. These initiatives will occur in line with the goals and frameworks of Svalbard policy, meaning that further development of the business sector cannot occur in the form of growth in volume, but rather in the form of increased value creation.

With its experience of regional restructuring, Innovation Norway can be an important contributor to the changes facing Svalbard. Regional restructuring is an extraordinary effort for municipalities or regions where a large number of jobs are being lost. Innovation Norway is funding the Næringsvennlig kommune [Business-friendly municipality] project.

From 2016 to 2023, just over NOK 10 million in loans and NOK 48 million in grants have been allocated to Svalbard, of which around NOK 20 million is from extraordinary measures introduced in connection with the adverse impacts of the COVID-19 pandemic. Business services have received the largest share of the funds, followed by industry and tourism.

4.7 Measures

The Government will:

• Introduce incentives to make it more attractive for Norwegians to move to and remain in Svalbard.

• Consider whether cash-for-care benefits and child benefits should be discontinued for employees who have no connection to the mainland.

• Consider introducing an employer’s National Insurance contribution for Norwegian employers that employ persons who become insured under the National Insurance Scheme through their employment in Svalbard.

• Consider a change in National Insurance contributions for foreign employees with no connection to the mainland.

• Make the General Application Act applicable to Svalbard.

• Assess the need for further measures to promote a legitimate labour market.

• Consider a scheme whereby public sector actors require pay and working conditions for employees to comply with the applicable national collective agreement for the industry in question when entering into agreements.

• Consider establishing in regulations the role of the Governor of Svalbard in matters relating to education.

• Review the responsibility for critical infrastructure in Longyearbyen.

• Consider conducting a survey on living conditions for Longyearbyen.

• Facilitate sustainable business development in Longyearbyen by ensuring stable framework conditions for the business sector.

• Promote a robust fibre-optic cable connection with good capacity to Svalbard.

• Work on the basis that the State shall take greater responsibility for power supply in Longyearbyen, e.g., through Store Norske, and that responsibility for power supply shall be clarified as soon as possible.

• Introduce a certification scheme for Svalbard guides to ensure that all guides possess sufficient competence to reduce the risk of accidents to people and avoid environmental harm.

• In the new Regulations relating to field safety, initialise that the requirement of notifying of travel for individual travellers takes effect upon traveling outside Management Area 10.

• Prepare a proposal for visitor fees for travellers to Longyearbyen.

• Introduce a limit on the number of passengers on board cruise ships in the territorial sea around Svalbard, and consider limiting the number of cruise ships sailing in Svalbard’s territorial sea.

• That infrastructure such as airports and ports are used for purposes underpinning the goals of Svalbard policy.

• Continue to utilise the ownership of dwellings and the management of access thereto as a means of contributing to the development of Longyearbyen in accordance with the objectives of Svalbard policy.

• Continue efforts to reduce the number of public property managers in Longyearbyen in the interests of efficient management.

• Uphold the instruction that the total housing stock shall not increase beyond the levels prior to the avalanches in 2015 and 2017.

• Continue efforts to raise the standard of housing in Longyearbyen.

• Ensure that the number of family dwellings is not reduced when the Government replaces dwellings exposed to landslides and avalanches.

• Consider whether registration at an approved place of residence should be a prerequisite for inclusion in the Population Register of Svalbard, as well as a possible requirement of registration from day one.

• Investigate a scheme that makes it possible for young people in Svalbard to earn small amounts without having to pay income tax.