Experts believe methane released from melting Arctic permafrost could have a high monetary cost.
Estimates show the melting ice could cost the world $60 trillion, that is about the size of the global economy in 2012, the BBC reported.
The shrinking ice sheet in the East Siberian Sea is causing the water to warm up, releasing methane gas into the atmosphere.
Scientists have observed kilometer-long gas clouds rising up from the warming waters.
The powerful greenhouse gas could contribute heavily to climate change, it will amplify already growing problems such as flooding, agriculture damage, sea levels rising, and human health.
"That's an economic time bomb that at this stage has not been recognized on the world stage," Prof. Gail Whiteman at Erasmus University in the Netherlands and an author of the study, said. "We think it's incredibly important for world leaders to really discuss what are the implications of this methane release and what could we indeed do about it to hopefully prevent the whole burst from happening."
Some companies are hoping to benefit financially from the melting ice.
It is estimated about 30 percent of the world's undiscovered gas resources, and 13 percent of the oil is hidden under the ocean. Transport companies are also discussing sending more ships through the newly melted area. Investments in ocean utilization could reach $100 billion within a decade.
The financial benefits of the melting Arctic will not be nearly enough to cover the cost of damage caused by methane gas.
"We are looking at a big effect," Prof. Peter Wadhams from the University of Cambridge, said. "A possibly catastrophic effect on global climate that's a consequence of this extremely fast sea ice retreat that's been happening in recent years."
Wadhams believes evidence of methane gas in the atmosphere is more apparent than ever.
"We are seeing increasing methane in the atmosphere. When you look at satellite imagery, for instance the Metop satellite, that's gone up significantly in the last three years and the place where the increase is happening most is over the Arctic," he said.
