Climate Change and Economic Policy: Integrating Sustainability into Development Strategies

Abstract

This study explores the integration of climate change considerations into economic policy, emphasizing the urgent need to embed sustainability as a core principle in national and global development strategies. As the consequences of global warming intensify, traditional growth models that prioritize industrial output and short-term gains are no longer viable. Drawing on a qualitative analysis of international frameworks, academic literature, and successful policy case studies, this paper examines how instruments such as carbon pricing, green budgeting, and clean energy subsidies can help economies transition toward low-carbon and inclusive growth. The findings suggest that, when these tools are tailored to local socioeconomic contexts and supported by strong institutional frameworks, they can reduce emissions effectively without compromising economic performance. Furthermore, the inclusion of just transition mechanisms ensures that climate policies do not exacerbate social inequalities. Ultimately, aligning economic strategies with climate goals is not only an environmental and ethical imperative but also a strategic opportunity to drive sustainable innovation, increase resilience, and promote long-term prosperity for all.