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How The Northern Sea Route Can Alter Global Dynamics
Manage episode 386424474 series 3381186
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As global temperatures rise and sea ice thaws, geopolitics is hotting up in the cooler climes of the Arctic, courtesy the Northern Sea Route (NSR). If the passage becomes ice-free the whole year round due to global warming, it could have a major impact on the global commercial markets.
It will become a shorter shipping route between Northeast Asia and Europe, reducing transit time from Asia by at least 40% compared to the route that goes via the Suez Canal, says Japanese scholar Dr Daisuke Kawai, Deputy Director of Economic Security Research Program at the Research Center for Advanced Science and Technology, University of Tokyo.
Adds that it would also allow access to the huge untapped deposits of oil, gas and mineral resources such as rare earths in the region, which would impact the global energy markets.
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