TransMUN Conference 2016 Committee Background Guide

Committee: General Assembly Second Committee ECOFIN

Topic: Energy Exploitation and Economy Cooperation in the Arctic Region
Chair: Timmy Chang
Deputy Chair: Artemis Huang, Grace Lin
Assisting Executive of Academics: Allen Yang
Supervisor (Deputy Director of Academics): Neil Lee

Committee Overview
History
Known as one of the sixth Committees that formed the General Assembly, the Economic and
Financial Affairs Council (ECOFIN) has a history that can be traced back to 1945, by the end of World War
II. The Committee was set up right after the United Nations was established. ECOFIN is the Second
Committee in the General Assembly and owns 18 functional programs and departments. At the sixty-ninth
session in 2015, the Second Committee took action on 41 draft proposals.
Like other Committees in the General Assembly, every single nation of the 192 UN Member States is
represented in ECOFIN. The Committee ensures all members to be able to engage in discussions, vote on
issues, and make their voices heard. This has made ECOFIN stand out from other economic organizations
such as World Trade Organization (WTO) and the International Monetary Fund (IMF), which both consist of
limited countries.
During discussions, the Committee often invites other international groups that do not represent in
other economic organizations. Thus, it is able to adapt their advice while constituting solutions concerning
different issues. This shows that ECOFIN achieves a broader global reach in solving issues.

Mandate & Functions

The goal of the Economic and Financial Affairs Council is to eradicate poverty by promoting
economic development in a sustainable way. In the Committee, nations discuss on issues concerning
economic development from general system, such as globalization, international trade and debt, international
financial system, eliminating poverty, to special situations in different regions, such as Least Developed
Countries (LDCs) and Landlocked Developing Countries (LLDCs) like occupied Palestinian territory.
Through negotiations, it calls upon nations to make economic policies that are beneficial to both the country
itself and the entire international system.
While putting effort to these development issues, ECOFIN also emphasizes on sustainable methods to
accomplish economic goals. It believes that only through environmental sustainability can the world
profoundly carry out great prosperity: to live in harmony with the environment. Without a high quality of
living environment, humans will not be able to create substantial profits; while without environment, humans
cannot live depending on money.

Objectives
One of the recent objectives of ECOFIN is the millennium goals proposed by UN Member States. It
focuses on the first goal which is to eradicate the poverty. The Committee has divided this goal into three
targets: to decrease the number of people living under one dollar each day, to increase productive
employment and work for all, and to halve the rate of people suffering from starvation. To achieve these
goals, ECOFIN carries the responsibility to fulfill the economic part of MDGs.
Aside from the MDGs, ECOFIN also solves issues that are indirectly related to economy. One of the
instances is to urge Israel to end occupation of the Arab lands. In the 65th session, the Committee passed a
resolution which calls upon Israel to cease its occupation of the Golan and Palestinian territories, the
exploitation of the natural resources, and its violations of human rights and international laws including the
Fourth Geneva Convention. With the majority voting in favor, it is manifested that Israels annexation of
Golan has no legal effect in front of the international community. However, the most decisive thing to the
issue is the objective vote of Israel. Without the cooperation of Israel, wars and instability will only be fueled
in the region. Thus, it still requires negotiation between nations to make the resolution effective to the issue.

About the Topic

Statement of the Problem
The Arctic is estimated to have the worlds largest gas reserves and some of the largest oil reserves.
Since petroleum can be produced from a well while natural gas requires the construction of pipelines,
exploration in the Arctic targets on oil instead of natural gas. Bringing wells into the Arctic requires a large
field to support the infrastructure for drilling and product transporting. However, once an initial infrastructure
is in place, smaller fields can be developed if the existing infrastructure has the capacity to support them.
Energy exploitation in the Arctic region is a significant issue for the global society. The oceans of the
Arctic are the next great frontier that big oil companies plan to exploit over the coming 15 years. While the
race of petroleum drilling can be seen as business approaches, it is also a race in global power distribution.
This can be seen in the following lines:
The race is on to drill for oil in the Arctic, as energy companies and Russia's Vladimir Putin eye the prize in
the world's last great frontier for resources exploration
On the other hand, portions of Canada, Denmark (via Greenland), Finland, Iceland, Norway, Russia,
Sweden and the United States are situated above the Arctic Circle. The 1982 United Nations Convention on
the Law of the Sea (UNCLOS) grants each country an exclusive economic zone extending 200 nautical miles
(370 kilometers; 230 miles). This led to disputes due to overlapping territories and varying opinions as to
how continental margins are mapped.

History
For the last 500 years, European explorers have been searching for the Northwest Passage, a sea route
connecting the Atlantic and Pacific Oceans through the Canadian Arctic Archipelago. Northwest Passage is a
potential trading route which saves a lot of time for ships to travel between Asia and Europe. Some historians
call the route the Arctic Grail and regard the explorers as people who have Arctic Fever. These show the
importance of the Arctic region in history.
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Northwest Passage routes, NASA

The Industrial Revolution and globalization resulted in the use of extensive use of fuel, increasing the
planets temperature and causing serious pollution. Extreme weather brought about the melting of
permafrost, shrinking glaciers and decreasing snowpack:
the portion of the Arctic Ocean covered by ice had been reduced to its smallest size since record
keeping began in 1979, shrinking by 350,000 square miles (an area equal to the size of Venezuela) since the
previous summer. All told, in just the past three decades, Arctic sea ice has lost half its area and three
quarters of its volume.
The melting ice not only opens up the Northwest Passage and access to billions of dollars worth of
fossil fuels, but also opens up the pollution that goes along with them.
First, oil drilling and transporting expose the Arctic Ocean to the threat of oil spill. Currently, there is
no effective method to contain and clean up the oil spill in icy water. The harsh conditions in the Arctic
region and its distance also make it difficult for countries to respond to a spill quickly. In most cases, it can
take days or weeks to respond to a spill, even during ice-free periods.
Then, pollutions including ocean water pollution, noise pollution, and greenhouse gas emission
destroy the natural balance of the Arctic and damage the natural habitats there. The Arctic has low
temperatures, limited sunlight, and a short productive season, which is why it can take many decades for it to
recover. How to strike a balance between economic developments and environmental protection has been a
long-discussed issue in the global society.
The Arctic is constituted of lands, internal waters, territorial seas, exclusive of economic zones
(EEZs) and high seas. Unlike the Antarctic, which doesnt belong to any country and is governed by the
Antarctic Treaty, the Arctic is for the taking, with Canada, Denmark (via Greenland), Finland, Iceland,
Norway, Russia, Sweden, and the United States holding military exercises to expand control over the Arctic.
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Brief history of the Arctic

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Recent Approaches and Difficulties

The Arctic Council plays a very important role in the arctic areas peace and cooperation. It is an
intergovernmental forum that addresses issues in the arctic area. It includes eight member states (Canada,
Denmark, Finland, Iceland, Norway, Russia, Sweden and the United States), 12 observers (including China)
as well as IGOs and NGOs. It is established according to the 1996 Ottawa Declaration, which stated that its
goal is to enhance cooperation, coordination, and interaction among Arctic nations.
Ministerial Meetings are held once every 2 years, and Members make decisions based on consensus.
Although it obeys international laws such as the United Nations Convention on the Law of the Sea
(UNCLOS), the contradiction of benefits and the lack of international rules make it difficult for the council to
reach a consensus.
What is notable about this organization is how its composition reflects international power
distribution in the Arctic. The 2008 Ilulissat Declaration blocked any new comprehensive international legal
regime to govern the Arctic Ocean Yet, in the 2013 Kiruna Ministerial, observer manual to the Arctic
Council was adopted, which is due for updating in 2016 to ensure that observers keep playing a supportive
role to the Arctic states. The extension of the decision and the distinctions between Permanent Members and
Observer States show the changing political and economic powers in Arctic disputes.
The European Unions seal export ban is another act according to the Global Arctic theory. The ban
has been implemented since 2010, with exceptions including the IC exception and the MRM exception.
Indigenous people, whose interests are still affected more or less, regard the decision as a disrespectful act to
their sovereignty de facto.
Economic cooperation is difficult when it comes to the Arctic because countries all want what is best
for their own benefits. Furthermore, the lack of international agreements regarding this area makes it even
harder for countries to reach a consensus when having a multi-lateral negotiation.

Case Studies
The following case studies inspects on certain areas of the recent activities in the arctic region
including economic cooperation, environment impacts, energy exploitation actions, and new technology in
response to the increasing movements and actions in the arctic region.
The Establishment of the Arctic Economic Council (2014)
One of the most recent economic and international
cooperation among the eight Arctic Council states is the
establishment of the Arctic Economic Council in September 2nd,
2014 in Iqaluit, Nunavut, Canada. This establishment is especially
beneficial to Iceland as its foreign minister Gunnar Bragi Sveinsson
said, Icelandic businesses have shown considerable and increasing
interest in emerging opportunities in the arctic, with regard to tourism,
transportation, contractors and responsible development of natural
resource. The new Council will with no doubt play an important role
in strengthening the economic cooperation between the states in the
region and create a framework, facilitating matters for all those who
are ready to participate, including Icelandic businesses. The establishment of this council can be seen as a
huge leap in creating a sustainable economic and environment development.
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Arctic Sea Ice Reaches New Records Low (2015)

As energy exploitation continues to increase, the amount of
ice in the Arctic Region has reached new records low in 2015 since
2011 as the ice is approximately 7% lower than the past 30 years
average and 1% lower since the previous records in 2011. With
this rapid speed, the ice has in total been shrinking around 5% per
decade. According to the press release from CBC, this great
change has greatly affected the food web as the ecosystem has
begun to distort.

(In the right image, the orange line is the median line for
the amount of ice that had existed from 1981-2010 showing how
much ice has actually decreased since then)
Arctic Drilling Increases
As the US has begun cutting its imports in energy since 2015, it had made itself one of the worlds
largest producers of oil and natural gas. However, since shale boom will not be a long lasting energy source,
the country has decided to increase its drilling in Alaska. The U.S. should immediately begin a push to
exploit its enormous trove of oil in the Arctic waters off of Alaska, or risk a renewed reliance on imported oil
in the future, an Energy Department advisory council explains. However, this causes environmentalists to
criticize greatly, which explains how the Arctic ecosystem is too fragile for any more increase in drilling.
Still, with the increasing demand of oil in the global market, US needs to either take action in drilling or
develop new sources of oil. According to CBCs interview with Jason Bordoff, director of Columbia
Universitys Global Energy Policy, he proclaims, It's important to have good information to make these
decisions, we need to make sure we're doing this in the right way.
New Technology Development in Response to Oil Spills
Recently in April 2016, The Bureau of
Safety and Environmental Enforcements
(BSEE) Oil Spill Preparedness Division had
begun testing geo-referencing identification
satellite (GRIDSAT) which will be able to
identify, track, and respond to an oil spill more
efficiently. Since oil trapper by ice is difficult
to recover because of the extreme weather,
GRIDSAT is able to tag and track down these
ices and the oil contained inside these ices up
to nine months as it is dropped down by
helicopters into icebergs or different types of
ice bodies for more detailed monitoring. The GRIDSAT system has mainly two projects in mind: how to
track oil spill assets and equipment and how to track spilled oil trapped under or in ice as ice floes moved.
With this technology, oil spill incidents by energy exploitation can be recovered in a shorter time to not only
protect the environment but the people as well. As this system develops, energy exploitation in the Arctic
Region can be safer with fewer risks in hand.
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The Arctic Greenland Forum 2016

The Arctic Greenland Forum 2016 took place in
Greenland in May 17-19. The event has attracted more
than 350 participants from over twenty countries
constituting one of the largest international forums to
discuss on Arctic issues. This forum had been used as a
platform to exchange ideas and their efforts and
achievement in tackling certain Arctic issues while
discussing more potential sustainable business operations
stretching from tourism to natural resources to rights and
opportunities of the local ethnic groups. Throughout the
three days, more cooperation and negotiations have been
established upon organizations and nations.

Key Actors and Positions

Russian Federation
Russia, the only non-NATO member among all, owns a huge amount of islands and archipelagos in
the region such as the Kolguyev Islands and the New Siberian Islands. For the Russian government, these
territories are extremely important as it consists of unexplored natural resources and areas that can be
developed into military bases to increase national security. Hence, according to international experts
forecast, Russia will own a huge portion of natural gas reserves in the future, which is something other
nations will not be tolerating. Russia also consists of numerous overlapping territories such as Yakutia,
Murmansk, the Nenets, and Chukotka Autonomous Regions which include sectors of Alaska, Canada,
Greenland, and Svalbard. These regions further made complications as in fishery regulations such as the
Svalbard archipelago where Norway and Russia has different opinions regarding not only the territory but
national fishing rules and fishery protection zone.

Canada
Canada plays a major role in all Arctic affairs, as 40% of its territory is located in the region while
home to more than 100,000 Canadians. The inhabitants are greatly concerned with the current status as they
had brought numerous issues to the worlds attention including climate change, needs of sustainable
economic development, and the importance of sharing experiences and knowledge of the region to the world.
In addition, the Canadian government has its own Arctic foreign policy which is based on four pillarsprotecting Canada's environmental heritage, promoting economic and social development, improving, and
devolving northern governance and exercising Canada's sovereignty in the Arctic. In response to these
pillars, Canada is a major actor in negotiations of international environmental instruments and a long
standing bilateral partner to other Arctic nations. In the aspect of natural resources, the country has been
actively involved in the regions research development especially hydrocarbon. However, this vast
hydrocarbon reserve has led to conflicts between Canada and Denmark as both claims certain territories such
as the Hands Island which USA and Russia also take interest in. As of 2006, Canada has overall spent $51
million on a project to map its territory and protect their sovereignty. Along with the project and increasing
the protection of their indigenous people, Canada is one of the main nations that must be negotiated in order
to reach a sustainable economic cooperation in the region.
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United States of America

In the Arctic region, USA has its most northern state- Alaska. The country plans to make the region
more accessible to human activities including fishing, shipping, and energy mining, yet they never ratified
the UN convention on the Law of the Sea. Still, as USA takes over the chairmanship of the Arctic Council in
April 2015, they are eager to show how this region and its people matter by fulfilling their Arctic Strategy.
Their government has drafted and implemented researches, monitoring, development, and protection
regarding natural resources and human health. Yet on the other hand, like any other country, USA is just as
interested in economic development as any other nation, not only for cash, but a method to improve the
current living status in the region.
However, they seem to struggle against their own political agenda as environmental groups strongly
criticizes the government when drilling in Alaska has begun. Additionally, the country also faced territorial
problems as their marine territories overlap with one another, especially Russia and China, given these two
governments have naval ships going through passages off the Alaska coast. With all these factors in mind,
numerous officials and media believe that the increase in military is a must, not only for safe and protection,
but for law enforcement and maritime sovereignty as well.

Greenland (Denmark)
Greenland, the largest island in the world, is located in the Arctic Region. Hence, Cape Morris Jesup,
the northern point of the island is the closest to the North Pole, makes Denmark one of the active nations
involving in the Arctic affairs. The country is also supported by the European Union as it established a
unified maritime policy agreement with Denmark, meaning EU countries are able to freely access the
resources of the region through the cooperation with Denmark. Furthermore, Denmark has further claimed an
approximate area of 895,000 square kilometers beyond Greenlands current borders. Aside from the political
affairs, Greenland takes a large role in the environment perspective. The ice sheets in the region are formed
by million cubic meters of fresh water, in fact, 10% of the worlds total water reserves.
However, due to climate change, the ice mass has pushed back almost 6 miles from 2001 to 2004
according to UNESCO statistics. If the water continues to melt, the ocean can rise up to 7 meters the most.
This raises up the question whether energy exploitation should continue as this puts Greenlands population,
animals, and the freshwater reserves at risk.

Norway
Norway consists of maritime as well as island territory in the Arctic region. Throughout the past 10
years, North Norway is thriving as the population continues to increase. This urges the government to vastly
develop this region to meet the locals economic demand including more international cooperation. The
Norwegian government further claimed how they had attempted in creating new opportunities to exploit
natural resources, new trade routes, and increasing human activities while possessing a sustainable
management of the environment. Furthermore, in May 2016, the government awarded Arctic drilling license
to 13 oil companies since 1994, which was greatly criticized by environmental groups. Hence, numerous
territories that Norway claims are either bordered or overlapped with Russia, which rose up further tensions.
Although Norway attempts in great leaps in its northern development with great plans in both
sustainable environment management and international cooperation, it certainly needs to resolve the current
issue on balancing environment and energy exploitation while negotiating and cooperating with neighboring
nations.

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Conclusion
The Arctic Region is one the most precious place on Earth. Yet, with great human interference and
irresponsible destruction, it is beginning to crumble, losing the balance it used to possess. As the human race
marches into the 21st century, nations must create a sustainable environment with international cooperation to
not only resolve the current country conflicts but to sustain this region forever. For the sake of the future
generations and the ecosystem, the Arctic Region is now a matter that must be handled carefully.

Questions to Consider in a Resolution

How can energy exploitation be balanced with environmental factors?

Should all Arctic nations sign and ratify and UN Convention Law of Sea?
Should all Arctic energy exploitation companies be registered and approved under the Arctic Council?
Or do all nations have the individual right to decide?
How can the most updated technology in energy exploitation in the Arctic Region?
Should energy exploitation be prohibited? Regulated? Is a quota necessary?
In what degree should the Arctic Region be limited when it comes to energy exploitation? In other
words, should there be a global standard when natural resources are exploited?
In what degree or how much power does the indigenous people hold when industrial development takes
place?
How can the Arctic Regions ecosystem be sustained? Should there be a global recognized or approved
area that prohibits nations from interfering?
In what ways can the current destroyed habitat, endangered species, and ecosystem be restored?
Should the Arctic Region simply be a common ground for all Arctic involved states or should there be a
globally-recognized border? If so, in what ways should it be divided? Can the borders be divided
through the current human habitat, history, or any other national symbols? In what degree is a violation
of national sovereignty especially in maritime territory?

Delegate Assignments
The Committee, GA2-ECOFIN's Position Paper should include:
1) A brief intro of the issue;
2) Past UN actions and how the country has responded and reacted to them;
3) How the issue affects your country;
4) Actions taken by your government with regard to the issue;
5) Resolutions that your country signed;
6) How the delegate wishes to solve the issue.
Length: 1~2 page(s) at least
Language: English
Font: Times New Roman
Size: 12
Deadline for Delegates' Position Paper: 7/19 (Wed.) 23:59:59
Please hand in your assignments via the DAIS Teams E-mails:
timmylfchang@gmail.com / artemis199812@gmail.com / gracelin0827@gmail.com
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