We calculate that the costs of a melting Arctic will be huge, because the region is pivotal to the functioning of Earth systems such as oceans and the climate. The release of methane from thawing permafrost beneath the East Siberian Sea, off northern Russia, alone comes with an average global price tag of $60 trillion in the absence of mitigating action — a figure comparable to the size of the world economy in 2012 (about $70 trillion). The total cost of Arctic change will be much higher.
As the amount of Arctic sea ice declines at an unprecedented rate, the thawing of offshore permafrost releases methane. A 50-gigatonne (Gt) reservoir of methane, stored in the form of hydrates, exists on the East Siberian Arctic Shelf. It is likely to be emitted as the seabed warms, either steadily over 50 years or suddenly
The methane pulse will bring forward by 15–35 years the average date at which the global mean temperature rise exceeds 2°C above pre-industrial levels — to 2035 for the business-as-usual scenario and to 2040 for the low-emissions case (see 'Arctic methane'). This will lead to an extra $60 trillion (net present value) of mean climate-change impacts for the scenario with no mitigation, or 15% of the mean total predicted cost of climate-change impacts (about $400 trillion). In the low-emissions case, the mean net present value of global climate-change impacts is $82 trillion without the methane release; with the pulse, an extra $37 trillion, or 45% is added (see Supplementary Information). These costs remain the same irrespective of whether the methane emission is delayed by up to 20 years, kicking in at 2035 rather than 2015, or stretched out over two or three decades, rather than one. A pulse of 25 Gt of methane has half the impact of a 50 Gt pulse.
The economic consequences will be distributed around the globe, but the modelling shows that about 80% of them will occur in the poorer economies of Africa, Asia and South America. The extra methane magnifies flooding of low-lying areas, extreme heat stress, droughts and storms.