The proposal is aimed on strengthening of the established cooperation within the frameworks of the BILAT-USA programme and the ongoing NFR projects PAACSIZ and POCAHONTAS. The existing cooperation is mostly confined to the lower atmospheric processes, gen eral circulation and the Arctic climate. At the same time both partners, Nansen Environmental and Remote Sensing Center (NERSC) and International Arctic Research Centre (IARC), have acquired extensive complementary oceanographic data and the data of the v ertical turbulent exchange in the atmosphere and the ocean. From the scientific point of view, it is beneficial, and moreover necessary, to joint and to cooperate on the analysis and continues collection of those data. The higher degree of collaboration w ill permit the detailed investigation of the components of the meridional energy flux in the Arctic. The later is one of the major factors shaping the polar climate and its variability. The NERSC-IARC project will focus on analysis of the compensation mec hanisms and interplay between the Arctic temperature change, the meridional heat flux in the atmosphere and the ocean, the sea ice extend and the two atmospheric teleconnection modes, namely, COWL and AO-NAO. Besides the data processing, the complementary model studies will be hold to better understand the mechanisms affecting the meridional heat transport on a multitude of time scales from days to decades. The NERSC-IARC project gives access to the most recent NABOS data, NERSC Ph.D. training onboard of the IARC Arctic cruises (north and east of Svalbard) and other IARC research facilities. The partners has already proved their collaboration and training abilities by 2 peer-review submissions and 3 joint conference presentations.