Circular economy refers to reusing, reducing, and recycling products along with designing products in a more sustainable way for the environment. Thus, it can be a significant moderator to solve the problem of climate change. Furthermore, this paper also correlates with the 13th sustainable development goal, which aims to solve the problem of climate change and minimize its effects. The study aims to find how circular economy strategies in different sectors can help in tackling the challenge of climate change and how it is better than conventional linear economy methods. The paper analyzed a wide range of data collected from prior research on the topic of circular economy and climate change. Various online databases like PubMed, Google Scholar, and Research Gate were used for the extraction of research data. Relevant keywords were used to keep the findings more on point. Meanwhile, special attention was paid to keeping the findings up to date. The inclusion and exclusion criteria were formulated with discreet discussion among the authors. This paper then further concludes that a circular economy can significantly decrease Greenhouse gas emissions, help in making more bio-based products, decrease waste production, reshape urban structures, etc., and hence solve the issue of climate change.