Plans to build a major aluminium plant are currently underway in Greenland. If realized, many citizens are expected to relocate from their current municipality to the municipality where the plant is located, Qeqqata Kommunia, causing significant changes to municipalities’ economies.

To assess the economic impact of the project in municipalities, Copenhagen Economics has developed a flexible model enabling decision makers to see the economic consequences of their policies, and determine the best possible course of action in years to come.

Overall, we find that the aluminium plant will be a significant benefit to Greenland’s economy. Qeqqata Kommunia stands to gain much additional income from the influx of new citizens, while the remaining three municipalities likely experience lower levels of income due to a reduced number of inhabitants. In order for these municipalities to gain from the aluminium plant, they must take steps to ensure, that more citizens enter their labour market as well as enhancing citizens’ ability to perform higher productivity jobs.  

Read the report here

For further information, please contact partner Christian Jervelund