A coalition of Nordic financial institutions and investors has urged the European Union to maintain its opposition to new oil and gas development in the Arctic, amid ongoing debates about energy security in the wake of global geopolitical tensions. The appeal comes as the EU considers revising its stance on Arctic drilling in response to the energy crisis exacerbated by the conflict involving the US, Israel, and Iran.

On Wednesday, Nordeaa Asset Management—part of the Nordic bank Nordea—along with 11 other financial entities, called on the European Commission to uphold the bloc’s current policy, which rejects further Arctic fossil fuel exploration. The letter, coordinated by the Nordic Center for Sustainable Finance and Danish pension fund Sampension, also drew support from civil society organizations, scientists, and Norway’s largest pension company, KLP.

Signatories warned that relaxing the EU’s position would jeopardize both long-term climate objectives and energy security. “New Arctic fossil fuel operations would require more than a decade to become operational, rendering them ineffective for addressing the current energy crisis,” the letter emphasized. It also highlighted the ecological sensitivity of the Arctic, describing it as one of the world’s most vulnerable ecosystems, home to unique wildlife that could face heightened risks from exploration and potential oil spills.

According to simulations cited in the letter, over 90% of spilled oil in parts of the Barents Sea would be irretrievable, underscoring the environmental hazards posed by drilling activities. The escalation of conflict in Iran has disrupted global energy markets, causing European gas prices to surge, which has intensified pressure on the EU to reconsider its Arctic policy.

Norway, Europe’s largest gas supplier though not an EU member, has reportedly advocated for lifting the moratorium on Arctic drilling to offset anticipated declines in output from aging fields in the 2030s. Norwegian energy companies like Equinor have emphasized the need for new discoveries beyond established production areas to sustain supply.

Despite these pressures, the European Commission has not finalized any policy changes. A spokesperson confirmed that the EU is “reviewing its Arctic policy in light of the new geopolitical and geoeconomic context,” but no conclusions have been drawn. Jacob Ehlert Jorgensen, head of environmental, social, and governance at Sampension, expressed support for Norway’s energy role while cautioning against Arctic drilling. He described the decision as weighing increased risks to energy security, climate, and biodiversity against potentially smarter alternatives.

As the EU balances its climate ambitions against immediate energy concerns, the debate over Arctic drilling remains a contentious issue at the intersection of environmental protection and geopolitical strategy.