A shift in the long-term weather patterns that define the world's regions is referred to as global climate change. The planet is, without a doubt, warming, according to scientists. This pattern cannot be explained only by natural climatic fluctuation. Human activities, particularly the burning of coal and oil, have significantly increased the quantities of heat-trapping gases in the atmosphere, resulting in global warming. The more of these gases people release into the atmosphere, the warmer the planet will get in the next decades and millennia. Rising sea levels, melting snow and ice, and altering weather patterns are all examples of the effects of global warming. Ecosystems, freshwater resources, and human health are already being impacted by climate change. Although climate change cannot be completely prevented, the most severe effects may be mitigated by drastically decreasing the quantity of heat-trapping gases emitted into the atmosphere. However, the window of opportunity for taking meaningful action to prevent catastrophic global repercussions is rapidly closing. This article examines the effects of climate change on different ecosystem components such as air, water, plants, animals, and humans, with a focus on the economics. The most pressing issue, global warming, is also addressed. This study goes through the mitigation options in more detail, with an emphasis on carbon sequestration and clean development mechanisms (CDM). The significance of synergy between mitigation and adaptation to climate change has been addressed. A summary of the economy's connection with emissions, including Carbon Tax and Emission Trading, as well as policies, is also provided.