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How does the Artic governance system address environmental and cultural concerns in the region? 

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The Arctic governance system tackles environmental and cultural concerns through participatory decision-making processes, market-based sustainability initiatives, and adaptive governance models. It emphasizes sustainable development to balance economic growth with ecosystem preservation, especially in environmentally sensitive areas of developing countries . Regional trade agreements increasingly include environmental cooperation, showcasing a shift towards addressing environmental issues within integration groupings . The system also evaluates the effectiveness of environmental dispute settlement mechanisms in regional economic integration agreements . By integrating ecosystem services value assessments into governance frameworks, the Arctic governance system aims to innovate regional institutions and transition towards sustainable development, as demonstrated in the Water Source Area of the South–North Water Diversion Project in China .

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