Climate Change and the Global Economic Policy Response: an analytical review

Climate change is increasingly becoming a threat faced globally by challenging stability of economies, social fairness, and environmental sustainability.In reaction, governments and international organizations have established a series of economic policy instruments with the view of mitigation and adaptation.This review compiles available data regarding various instruments crucial to any economy, such as carbon taxes, trading emissions systems, climate finance mechanisms, and innovation incentives -their effectiveness, equity impacts, and challenges of implementation.Studies across different parts of the world identify that carbon pricing systems that are properly designed have the potential to cut emissions without hampering economic growth, particularly when the proceeds are recycled back into the community, and benefited by the lowincome citizens.Moreover, it is revealed that investment by the government in green technologies and robust infrastructure can provide a good level of economic returns and long-term growth.Nevertheless, the reaction to these developments on the global scale is still disjointed, and the most significant issues that await solutions are poor financing of the climate change issues, lack of policy consistency, and unfair availability of adaptation funds.The paper summarizes and suggests a combination of a less siloed, fair and evidence-based approach to secure better results in climate economic policy responses of both developed and developing economies.