Through a comprehensive review and analysis of theoretical exploration and governance practices related to global climate change in the past three decades, this book identifies existing problems within the current economic theory of climate change and the implementation of decarbonation strategies. It introduces a novel framework, from foundational theory to practical solutions. The CELM offers a fresh theoretical framework and innovative perspectives for the economics of climate change, providing enhanced opportunities to address the global climate challenges effectively. In the realm of governing large-scale complex public goods characterized by spatial and temporal externalities, the CELM surpasses the limitations of traditional frameworks such as the Pigouvian Tax principle, the Coase Theorem, and Nordhaus’ climate economic models, introducing significant innovations and advancements to the foundational theories of global climate governance.