Denmark has unveiled plans to allocate around DKr14bn (equivalent to $1.96bn) for the enhancement of its military capabilities in the Arctic and North Atlantic territories.  

The consensus on this allocation was reached by the political parties including the Greenlandic and Faroese Governments that support the 2024-2033 Danish Defence Agreement.  

The current accord outlines initiatives backed by the investment. Additionally, there is a mutual understanding among the parties about the necessity to finalise a subsequent agreement on this matter by the first half of 2025. It will focus on further strengthening deterrence and defence in the region 

The agreement aims to enhance surveillance and assert sovereignty in the Arctic and North Atlantic, while supporting allies and NATO’s mission in the region.  

It includes the procurement of three new Arctic naval vessels, long-range drones, and satellites to strengthen Denmark’s defensive capabilities.  

Denmark Defence Minister Troels Lund Poulsen said: “We must face the fact that there are serious challenges regarding security and defence in the Arctic and North Atlantic. For this reason, we must strengthen our presence in the region. That is the objective of this agreement, which paves the way for further initiatives already this year.” 

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The new naval vessels are expected to increase operational effectiveness and flexibility around Greenland, carrying additional capabilities such as helicopters and drones.  

The current patrol vessel project is being redirected to prioritize Arctic patrol vessels. In response to the evolving security situation, the Danish Defence’s frigates will take on a more significant role in the North Atlantic. A new plan outlining the future direction of the Danish Navy fleet will be presented in March 2025. 

Additionally, it includes plans to fortify intelligence cooperation, research, and upgrade the facilities of the Joint Arctic Command in Nuuk to improve security conditions and expand the Danish Defence’s operational capabilities in the Arctic and North Atlantic. 

The two long-range drones will enable detailed surveillance over vast distances and capture detailed images. The drones are in addition to the two signal acquisition drones included in the 2021 Arctic Capability Package agreement. 

Moreover, increased satellite capacity, along with ground-based sensors, will enhance situational awareness and intelligence. Satellite communication will be boosted by acquiring equipment for data handling.  

Funding will be reserved for leasing aircraft to fulfil the Cl-604 Challenger’s tasks outside the Arctic and North Atlantic, including passenger transport, Frontex-related tasks and surveillance in the Baltic Sea. 

Plans also include extra funding for two coastal radars in Greenland, which were originally part of the 2021 Arctic Capability Package Agreement. Options will be explored for expanding the Danish Defence’s Seahawk simulator capabilities to cover broader areas of Greenland.  

The Arctic special operations force, Sirius, will be reinforced to enhance the Danish Defence’s presence in Northeast Greenland. Additionally, efforts to boost the recruitment of Greenlandic personnel into the Sirius special operations force will be strengthened through collaboration with the Government of Greenland. 

Greenland Statehood and Foreign Affairs minister Vivian Motzfeldt said: “Greenland is facing a changing security landscape. I am pleased with the steps we are taking towards increased security in and around Greenland with this partial defence agreement. Naalakkersuisut is looking forward to continuing the dialogue with the Government of Denmark.” 

The agreement also underscores the necessity to enhance the Danish Defence’s capacity to support civil agencies, such as the police and emergency management agencies.  

The parties involved have emphasised the importance of the agreement’s positive impact on local workplaces and businesses in the Faroe Islands and Greenland, aiming to bolster the resilience of civil society.