The Greenland Deal - Opportunities in a Changing Landscape

The agreement at a glance

On 22 September 2026, the United States, the Kingdom of Denmark and Greenland signed a security agreement at the United Nations General Assembly in New York. The agreement recognizes and respects the sovereignty and territorial integrity of the Kingdom while establishing a framework for expanded US security engagement in the Arctic. Greenland remains under the military shield of the United States, and it is expected that the United States will increase its military presence with two military bases in Greenland. The agreement also introduces new rules on foreign investment in Greenland – raising important questions about who can invest, in which sectors and on what terms.

Under Article X of the agreement, states or investors from states that are not NATO members, NATO partners or EU member states may not have (i) control, (ii) significant influence, or (iii) access to non-public information that may pose a threat to national security or public order within “Particularly Sensitive Sectors or Activities” in Greenland – defined to include, but not limited to, critical infrastructure and resource extraction. An exception applies where the parties jointly agree that the activities in question do not constitute a threat to national security or public order. This mechanism is to be administered by Greenland in close cooperation with the authorities of the Kingdom of Denmark, with close consultation with relevant United States authorities and other partners.

For European and allied investors, the position is clear: the agreement does not restrict their activities. EU and Danish investment programmes can proceed without constraint under Article X, and Greenland remains fully accessible for commercial engagement from NATO and EU countries.

The practical implementation of Article X will depend on Greenland’s domestic legislation.
The agreement expressly contemplates that the screening will be carried out by Greenland through its “current or future investment screening laws”, in close cooperation with Danish and US authorities.

Greenland currently has no FDI screening regime in place, though a legislative proposal has been under consideration and since withdrawn in Spring 2026. The agreement is likely to accelerate the process of establishing a Greenlandic FDI regime – and the final shape of this legislation will be important to follow, as it may apply more broadly than the restrictions in Article X itself.

For investors with complex ownership structures or links to third countries outside NATO and the EU, careful analysis of both the agreement and the forthcoming Greenlandic legislation will be essential to ensure compliance and to structure investments appropriately.

The agreement must be ratified through parliamentary procedures in both Greenland (Inatsisartut) and Denmark (Folketinget) before it becomes binding under international law. We will monitor the ratification proceedings and issue further guidance as the legislative timeline becomes clearer.

EU and Danish Investment in Greenland – opportunities and access

In parallel with the security negotiations, both the European Union and Denmark have significantly intensified their engagement in Greenland. On 7 September 2026, European Commission President Ursula von der Leyen visited Nuuk and announced a €200 million Global Gateway Partnership Package for 2026-2027, accompanied by a new Joint Declaration between the EU, Denmark and Greenland. Denmark has separately committed substantial funding for both civilian infrastructure and Arctic defence capabilities.

Key sectors and opportunities:

• Critical raw materials: Greenland hosts 25 of the 34 minerals on the EU’s critical raw materials list. The EU and Greenland intend to advance sustainable mining projects connected to European industry, with backing through technical analysis and investor matchmaking. Named projects include the Malmbjerg mining project (molybdenum) and GreenRoc’s Amitsoq graphite project, which has been designated an EU Strategic Project under the Critical Raw Materials Act.
• Sustainable energy: The EU will support a programme led by national utility Nukissiorfiit to modernise and decarbonise energy supply to remote settlements through hybrid renewable systems. A feasibility assessment is underway for expanding the Buksefjord hydropower plant to meet increasing electricity demand in Nuuk.
• Digital infrastructure: The EU is working with Greenlandic telecoms operator Tusass on an enhanced satellite connectivity project over a five-year period through European providers. The Commission is also supporting feasibility studies on the commercial viability of data centres in Greenland.
• Long-term commitment: Beyond the 2026-2027 package, the European Commission has proposed €530 million for Greenland in the EU’s Multiannual Financial Framework for 2028-2034 – more than double the current allocation. The EU also contributes €17.3 million annually through the Sustainable Fisheries Partnership Agreement.

Denmark has also substantially increased its commitment to Greenland across both civilian and defence sectors.

• Infrastructure: Approximately €215 million has been committed for 2026-2029, targeting a new deepwater port in Qaqortoq, a regional runway in Ittoqqortoormiit and expanded healthcare coverage.
• Defence capabilities: Approximately €5.5 billion has been committed through 2033 for Arctic and North Atlantic defence, including new Arctic patrol vessels, maritime patrol aircraft, long-range drones, coastal radar, a North Atlantic undersea cable and a new Joint Arctic Command headquarters in Nuuk. These investments are expected to generate significant demand for contractors, suppliers and service providers.

For companies exploring these investment opportunities, Gorrissen Federspiel can assist with navigating the EU and Danish funding landscape, structuring investments to qualify for relevant programmes, and advising on the regulatory requirements associated with each sector.

Key investment safeguarding strategies

The new geopolitical framework makes investment safeguarding more important than ever. We advise companies to:

• Include robust arbitration clauses in all contracts with the Government of Greenland and private parties
• Choose recognised international arbitration institutions (ICC, SCC, LCIA) with a neutral seat of arbitration
• Danish bilateral investment protection agreements (BITs) do not, as a rule, cover Greenland, therefore, carefully consider alternative structuring models to gain access to investment arbitration (e.g. ICSID) and seek specialised advice.
• Take out specialised insurance with MIGA (Multilateral Investment Guarantee Agency) or national export credit agencies such as EKF and consider cover for various adverse scenarios.
• Conduct early due diligence on both Greenland’s FDI screening regime and the security agreement’s investment provisions. Consider how the investment structure can be optimised to navigate both frameworks, including the choice of investment vehicle, the allocation of ownership and control, and the classification of the target sector.