State Secretary Liv Monica Stubholt speaks at European Energy Forum

State Secretary Liv Monica Stubholt

European Energy Forum

Hammerfest, 9 July 2006

I am delighted to welcome you to Norway and to Hammerfest. I appreciate your taking an interest in Norway and admire your stamina. It’s a long way across the plains from Alta to Hammerfest. A special welcome to the eleven distinguished Members of the European Parliament who are here with us today.

It is very appropriate that energy issues are on the agenda for our meeting here in the Norwegian High North. Norway and Norwegian industry are constantly addressing the challenge of energy development. The Snøhvit LNG plant is just one of several examples of this. We believe that what you will see and discuss tomorrow constitutes important elements of our common future. Few places can challenge Hammerfest’s claim to being the northernmost town in the world. But even though the High North may still be exotic, it is slowly losing its claim to being remote, at least in energy and political terms.

The High North is an important arena for security and stability issues. We are building on a strong track record of peaceful coexistence with Russia and other neighbours through decades of changing global scenarios and shifting and developing alliances.

The foremost responsibility for any government is to provide a safe society for its citizens. Norway is lucky. Our task is to maintain a stable society – an advantageous starting point, for which we are grateful. But maintaining stability is not tantamount to passivity. The mantra of Norwegian foreign policy has been and will continue to be “keep a steady course”. But in uncharted waters and stormy weather, a steady course may at times require adjusting the position of the wheel.

Political stability requires attentiveness to the concerns of others – whether neighbours, allies, partners or other parties – as we expect them to listen to us. We believe not only in understanding but also in empathising with what is troubling others, as far as we can. The importance of dialogue cannot be overestimated in the maintenance and promotion of political stability. This is another reason we are so pleased to welcome both politicians and industry leaders to Hammerfest.

Many link the factual components of energy security and security policy. We share the view that energy issues are relevant to the common objective of stability. The European Union’s increased focus on energy, as evidenced by the Green Paper on a European Strategy for Sustainable, Competitive and Secure Energy is one important example. Energy fuels the workings of the global community. Thus risk assessment must address the issues of energy supply and distribution. Norway underscores that we will continue to be a dependable and predictable partner – a message we convey very clearly in our foreign policy.

Energy is part of the solution to many common global challenges. Energy supply and distribution have moved to the forefront of a global development strategy for the poorer parts of the world. Development is in itself relevant to the issue of political stability. Many now identify access to energy as a crucial factor in the development of the poorer regions of the world.

This focus on energy may serve to enhance Norway’s role internationally and the interest in the High North. But make no mistake: the role of the Norwegian Government is to provide an open, transparent and predictable regime for the development of natural resources. Our regulatory regime has in itself become an export article. Our Oil for Development programme is an illustration.

The tendency has been to consider the High North primarily from a military perspective. The Cold War shaped our entire thinking about East and West, NATO and the Soviet Union.

Today, the vast Arctic area at the top of the globe is a peaceful corner of the world. A number of countries, including Russia, cooperate closely and concretely, on Arctic research, on climate change, on the management of living resources and on a wide range of other important issues, including energy, framework conditions and environmental concerns. This is in our view the successful way forward.

Our own activities in the High North constitute a mainstay of Norwegian policy. Norway is a coastal state with large sea areas under its jurisdiction. Managing the rights and responsibilities that this entails is a formidable task. But our sustainable management of the resources in these waters is being challenged by some and violated by others, IUU fishing is one example.

We expect support when we face such challenges in the High North. We conduct our responsibilities and obligations as a sovereign authority and coastal state in a predictable and transparent manner. In doing so it is imperative to us to maintain good relations and a frank dialogue with our neighbours, partners and friends. Our ties and ongoing dialogue with the institutions of the EU and its member states are important in order to achieve this.

Close and friendly relations with Russia have been and continue to be a cornerstone in our High North policy. This has been a real contribution to peace and stability in Northern Europe, and will continue to be so in the future. The High North, including the Barents Sea, remains an area of prime strategic importance. The Kola Peninsula is still the home base of the Northern Fleet, which carries a

major part of Russia’s nuclear deterrent. It is crucial to continue this by developing activities and policies in an open and ambitious dialogue with Russia. We encourage Russia’s participation in international for a as a reflection of her importance.

The Barents Sea is about to become Europe’s new energy region. Our goal is that this future includes developments in the Norwegian as well as the Russian parts of the Barents Sea. This will require a strong international commitment to resolving environmental and technological issues in a safe and sustainable manner.

In the High North, the guiding principle is to balance the interests of the different sectors. A key instrument in this regard is the Norwegian Government’s recently adopted Integrated Management Plan for the Barents Sea. The plan constitutes the framework for petroleum exploration, transport and fisheries in the northern waters.

We believe ecosystem-based management to be the most viable and modern tool. In order to develop new activities in the High North, we will consider a range of commercial, political and environmental interests and issues. This is politics. The important caveat is that we must not ignore the long-term or silent interests.

There are three keywords that summarise Norway’s High North policy: presence, activity and expertise:

Presence in the new chapters that will be written about a considered and sustainable use of both renewable and non-renewable natural resources in the High North. Presence as a coastal state means taking over its responsibilities seriously, including carrying out inspection and control activities in an appropriate way in areas under our jurisdiction.

A high level of activity and ambition in the fields of technology, research and the environment. And, therefore,

Investing in expertise and sharing knowledge – not being in the forefront of High North and Arctic knowledge – is not an option.

We would like to invite you, as our European partners, to reflect on, discuss and take part in these developments. The skills of more than one nation are required to develop the solutions required to shape activities in the North.

Norway is reaching out to neighbours, friends and partners to realise the opportunities and address the challenges in the High North. Thank you for responding to this by joining us here.

And thank you for your attention.