Politics

Denmark will spend DKK 1.2bn on new investments in Greenland

The Greenland support package agreed by the Danish government and Naalakkersuisut will provide DKK 1.2 billion (€161 million) for social support, energy, utilities and infrastructure between 2026 and 2029. The partial agreement was signed on Tuesday and represents a new step in implementing the broader financial framework agreed by Denmark and Greenland last year, according to DR.

What the Greenland support package will fund

Part of the funding will finance an assistance package for Greenlandic residents who are in the most difficult economic circumstances.

The agreement also allocates money to the utilities sector. This includes water supply projects in Ilulissat and support for the publicly owned utility company Nukissiorfiit, with the aim of modernising and strengthening Greenland’s energy infrastructure.

Finance Minister Peter Hummelgaard said the investments were intended to have a direct effect on everyday life in Greenland while supporting Naalakkersuisut’s efforts to develop a stronger and more sustainable society.

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Image: Denmark Justice Minister justitsminister Peter Hummelgaard // Tv2kosmopol

New funding for airports, a port and a regional runway

Infrastructure is another major part of the agreement. Denmark and Greenland have agreed to provide funding for the operation of Greenland’s new international airports.

The package will also finance preliminary studies in 2027 for a new regional runway in Ittoqqortoormiit, in eastern Greenland, and a new deep-water port in Qaqortoq, in the south.

Both projects were already included in the framework agreement signed by Prime Minister Mette Frederiksen and Chairman of Naalakkersuisut Jens-Frederik Nielsen in September 2025. The Danish government committed DKK 1.6 billion (€214 million) for Greenland-related initiatives and investments over the 2026-2029 period, including healthcare and infrastructure.

Greenland’s airport network is also undergoing a wider transformation. Nuuk’s new international airport opened in November 2024, while new airports in Ilulissat and Qaqortoq are expected to enter operation in 2026. The Danish state has previously provided financing for the airport investments, including additional support for the Ilulissat project.

Denmark and Greenland are implementing the 2025 agreement

The new deal follows an earlier partial agreement reached in February. That agreement allocated DKK 185 million (€24.8 million) in 2026 to cover treatment for Greenlandic patients in Danish hospitals and provided additional funding for cooperation between Denmark’s regions and Greenland’s healthcare system. The Danish Ministry of Finance said at the time that the agreement also moved forward preparations for the Ittoqqortoormiit runway and Qaqortoq port.

The broader cooperation is based on the September 2025 agreement on a more self-sustaining Greenland, which established a framework for Danish-funded investments while leaving individual projects to be developed through subsequent agreements. The original agreement also opened the way for further cooperation on infrastructure, economic development and energy security.

The latest DKK 1.2 billion package therefore moves several of those commitments into more concrete programmes. Its implementation over the coming years will determine how much of the funding translates into improvements in household support, energy infrastructure and transport links across Greenland.

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