A testing and significant conversation over one of the coldest and most northern points on the earth is taking place as business leaders and government officials gather for this year's Arctic Circle Assembly. 

More than 70 countries joined the discussion in Iceland, weighing up the potential huge return on making the Arctic Circle a major trade route, and the possibly devastating environmental costs. 

Erdem Lamazhapov, from the Fridtjof Nansen Institute, says the geographical advantages are clear, but so are the difficulties. 

"Theoretically, this is a much shorter route," he tells CGTN. "In practice, there are several different problems with utilizing the Arctic route.

"Because it is going through the Arctic Ocean, which is covered by ice most of the time, this means that the corridor when you are able to sail without icebreaker support is quite short."

At the Arctic Circle Assembly, discussions are increasingly focused on whether the region has the infrastructure needed to support expanding maritime traffic. 

More ships would require improved ports, navigation systems, ice monitoring and emergency response capabilities.

For Iceland, strategically positioned in the North Atlantic, increased Arctic shipping could bring fresh opportunities for its ports, logistics companies and maritime services. 

However, environmental concerns are mounting. Conservation groups fear that more vessels could threaten fragile Arctic ecosystems through pollution, underwater noise and potential accidents in remote waters.

Dr. Nong Hong believes the opportunities must be balanced against serious practical risks. 

"I see there’s potential, but I also see a lot of challenges as well," she tells CGTN, pointing to extreme weather and limited search-and-rescue capabilities.

"Putting aside the geopolitical situation, we are also seeing lots of bad weather and climate issues."

While shorter journeys could reduce fuel consumption, increased traffic brings environmental risks.

The Arctic may offer the world a faster trade route – but whether it can become a safe, sustainable shipping highway remains an open question.