Denmark Tries to Keep Greenland with More Money
The runway at the small Ilulissat Airport in western Greenland. Source: iStock.com/carstenbrandt
An update to last year’s framework agreement with Denmark secures, among other things, new multi-million investments in Greenland’s airports and in Nukissiorfiit, the state-owned utility responsible for supplying electricity, clean water, and heating.
In September 2025, Greenland’s government entered into a framework agreement with Denmark worth 1.6 billion kroner. The government has now finalized an update to that agreement. The amount is set at 1.2 billion kroner for the 2026–2029 period.
The funds have been earmarked for infrastructure, energy supply security, a food voucher scheme, and the healthcare sector. The new agreement makes those priorities more concrete.
Aqqaluaq B. Egede, the Minister for Finance, says in a press release that he is satisfied with the outcome.
“I am pleased that we have now finalized the second sub-agreement and can move forward with concrete initiatives.”
“I also view it as highly satisfactory for both parties that we will jointly follow up on the funding for the continued implementation of further measures within the framework agreement, ensuring it reflects actual needs.”
The Danish Minister for Finance, Peter Hummelgaard, echoes the sentiment.
“With this sub-agreement, we are turning our shared ambitions into concrete action. We are investing in initiatives that make a tangible difference in the daily lives of the Greenlandic people, while simultaneously supporting the Greenland government’s work to develop a strong and sustainable Greenlandic society.”
Funding for Ilulissat
Last year, Greenland Airports stated in its annual report that it needed to secure an additional 1.1 billion kroner to complete the construction of Ilulissat Airport.
Under the updated framework agreement, Denmark is allocating 125 million kroner annually to Greenland’s airports.
“However, the transition to operating the airport in Nuuk and the completion of the airport in Ilulissat have created a need for a stronger financial foundation for the airports,” the updated agreement states.
This year, 2 million kroner has been allocated for preliminary studies regarding a potential drinking water lake in Ilulissat, along with 1.25 million kroner for a water protection zone.
The new agreement will secure the water supply in Ilulissat with allocations of 3 million kroner this year, 37 million kroner next year, and 15 million kroner in 2028.
Nukissiorfiit and Other Measures
Last month, Filip Sivertsen, technical director at Nukissiorfiit, told KNR that there is a shortfall of 400 million kroner for new investments or funding.
“It is worrying for many of our highly responsible employees out there to know that we should have reinvested in these facilities long ago. We are keeping them running more or less by the grace of God,” said Filip Sivertsen.
Denmark is now allocating 92 million kroner to Nukissiorfiit this year.
Other measures include the previously mentioned food voucher for Greenlandic citizens, for which Denmark will contribute 45 million kroner.
At the same time, the framework agreement is being used to secure funding for Greenlandic patients in Denmark, as well as for a new deep-water port in Qaqortoq and a runway in Ittoqqortoormiit. The agreement regarding Greenlandic patients was concluded earlier this month.
Source: KNR (in Danish)