Global warming is universally perceived as a survival challenge. With governments worldwide successively declaring the advent of “climate emergency”, urgent and robust climate policies are needed to respond to this challenge. Regardless of misleading remarks on climate change and its future implications from some agencies, there remains a consensus among humanity to actively tackle this challenge. While climate change is indeed real, anthropogenic, and will exert significantly adverse effects, it is imperative to acknowledge that climate policies can have profound effects on macroeconomic stability and social welfare, with both potential benefits and drawbacks. Therefore, it is crucial to weigh the impacts of both to devise policies that maximize welfare benefits.