[{"bbox": [96, 152, 1134, 233], "category": "Text", "text": "in 2020²²). Further resources are allocated to research and development of renewable energy resources and energy efficiency, including operation of energy facilities requiring technical expertise and skills training in order to supply the sector with a domestically based workforce."}, {"bbox": [96, 258, 1135, 446], "category": "Text", "text": "GoG declared that the Paris Agreement ratified by Denmark does not apply to Greenland. However, after the last parliament elections (2021) the GoG is now considering abolishing this reservation. Implications for entering into the Paris Agreement are currently being reviewed by the GoG. According to an independent review²³ by Kammeradvokaten, a possible solution will be that GoG in cooperation with the Danish government develops a separate climate plan for Greenland in addition to the Nationally Determined Contribution NDC that Denmark already has communicated via the EU. This solution will allow Greenland to uphold preferred exceptions e.g., reduction obligations related to raw mineral exploitation and the shipping sector."}, {"bbox": [96, 471, 256, 498], "category": "Section-header", "text": "### Social inequality"}, {"bbox": [96, 497, 1134, 605], "category": "Text", "text": "Income inequality - as measured by the Gini-coefficient²⁴ on disposable income (2020) - is greater in Greenland (35%) than the average for all Nordic countries, including Denmark (27%)²⁵. After a declining trend in income inequality from 2005 -2009, the trend in the following years has shown an increasing tendency except for the latest available year of calculation (2020) showing a slight decline²⁶."}, {"bbox": [96, 630, 450, 657], "category": "Section-header", "text": "### Future fiscal sustainability challenges"}, {"bbox": [96, 656, 1134, 764], "category": "Text", "text": "Even though the Government of Greenland has pursued a balanced fiscal policy in recent years up to the COVID-19 crisis, Greenland's economy will face an important future challenge due to demographic changes from a combination of increase in the share of the older population (65+ years) relative to groups at working age (20-64 years) and shrinking income sources in the coming 25 year period²⁷."}, {"bbox": [96, 788, 1134, 949], "category": "Text", "text": "This trend puts increasing pressure on the public finances, which results in a deficit on the public balance. The deficit will be around 3 per cent of GDP from around 2035, when the share of elderly people in relation to the population are highest. This corresponds to an annual gap in funding of approx. DKK 1 billion/EUR 133 million (calculated at 2020 level). According to the recent report from the GEC²⁸, this shows the pressing need for reform for the public economy. The forthcoming GoG Growth and Sustainability Plan (2023) is expected to address these sustainability issues."}, {"bbox": [96, 973, 1134, 1026], "category": "Text", "text": "**In conclusion, the authorities are pursuing a stability-oriented macroeconomic policy and the eligibility criterion is met.**"}, {"bbox": [85, 1041, 437, 1069], "category": "Section-header", "text": "### 2.3.3 Public Financial Management"}, {"bbox": [96, 1083, 1134, 1217], "category": "Text", "text": "The EU budget support modality has been a key reform driver in the Greenland public finance management system, well acknowledged by the Government of Greenland with the Public Finance Management (PFM) reform monitored and evaluated in the annual PFM progress reports according to the multi-annual PFM Action Plan. Based upon a recommendation by the external auditor the Audit Committee of Inatsisartut (Parliament) has since 2018 received the annual PFM Progress Report prepared for the European Commission."}, {"bbox": [96, 1244, 1134, 1299], "category": "Text", "text": "The last Public Expenditure and Financial Accountability (PEFA) assessment 2021/2022 confirmed the previous PEFA assessment from 2014 that the Greenland PFM system is functioning to good quality standards. Overall,"}, {"bbox": [85, 1356, 1130, 1405], "category": "Footnote", "text": "²² https://www.irena.org/-/media/Files/IRENA/Agency/Statistics/Statistical_Profiles/North%20America/Greenland_North%20America_RE_SP.pdf"}, {"bbox": [85, 1404, 1143, 1503], "category": "Footnote", "text": "²³ As stated in an assessment of consequences and policy options for the GoG on accessing the Paris agreement, *Notat om konsekvenserne for Grønland ved tiltrædelse af Parisaftalen*, Kammeradvokat “Poul Schmidt”, January 2023. Cf. https://naalakkersuisut.gl/-/media/horinger/2023/02/0602_parisaftale/da-bilag-2--notat-om-konsekvenserne-for-grnland-ved-tiltrødelse-af-parisaftalen-poul-schmith-kammerad.pdf"}, {"bbox": [85, 1501, 1143, 1548], "category": "Footnote", "text": "²⁴ A Gini coefficient with the value 0 represents a perfectly equal distribution, while the value 100 represents a perfectly unequal distribution."}, {"bbox": [85, 1548, 629, 1572], "category": "Footnote", "text": "²⁵ Statistics Greenland 2023, Greenland in Numbers, May 2023."}, {"bbox": [85, 1572, 564, 1596], "category": "Footnote", "text": "²⁶ Statistics Greenland, Income Statistics. October 2021."}, {"bbox": [85, 1596, 806, 1621], "category": "Footnote", "text": "²⁷ Source: Report Greenland Economic Council 2017 and GEC Annual Report 2022."}, {"bbox": [85, 1621, 1140, 1646], "category": "Footnote", "text": "²⁸ GEC Annual Report 2022: Business cycle, Economic Policy Assessment and Sustainability, Autumn 2022. September 2022."}, {"bbox": [1027, 1681, 1143, 1706], "category": "Page-footer", "text": "Page 15 of 36"}]