Assessment of the cost of climate change impacts on critical infrastructure in the circumpolar Arctic

The Arctic is experiencing pronounced climatic and environmental changes. These changes pose a risk to infrastructure, impacting the accessibility and development of remote locations and adding additional pressures on local and regional budgets. This study estimates the costs of fixed infrastructure affected by climate change impacts in the Arctic region, specifically on the impacts of permafrost thaw. Geotechnical models are forced by climate data from six CMIP5 models and used to evaluate changes in permafrost geotechnical characteristics between the decades of 2050–2059 and 2006–2015 under the RCP8.5 scenario. Country-specific infrastructure costs are used to estimate the value of infrastructure affected. The results show a 27% increase in infrastructure lifecycle replacement costs across the circumpolar permafrost regions. In addition, more than 14% of total fixed infrastructure assets are at risk of damages due to changes in specific environmental stressors, such as loss of permafrost bearing capacity and thaw subsidence due to ground ice melt. Regions of Northern Canada and Western Siberia are projected to be particularly affected and may require additional annual spending in the excess of 1% of annual GRP to support existing infrastructure into the future.