Climate change cost up to £54 trillion ($70 trillion) more than previously calculated as the fallout from melting Arctic ice worsens.
As the Arctic warms, melting permafrost will release more carbon into the atmosphere while the loss of ice and snow will reflect less sunlight back into space.
Together, these effects combine to worsen global warming thanks to a complex interplay and a multitude of factors.
The costs of climate change could be minimised, the researchers claim, if more ambitious climate targets laid out by the Paris Agreement are met.
If the global temperature rise could be kept to under 1.5°C above pre-industrial levels, then the costs of arctic feedback effects would drop to only £19.3 trillion ($25 trillion).
The majority of previous climate policy studies have made two consistent assumptions in their models of changing climates.
The first is that there will be no positive feedback effect generated as thawing permafrost releases additional carbon into the atmosphere.