The impacts of climate change are very painful around the world but the developing countries are facing high vulnerability of climate change. The Greenhouse gases (GHGs) are upsurge continuously and the 100-year global warming potential of sulfur emission is very high. This study examined the relationship between Sulfur Emissions (SO2) and economic indicators in SAARC countries. The study employed the data of SAARC countries from 1975 to 2018. In addition, the study applied panel unit root tests and all the variables are stationary at first difference level. After this, the study applied cointegration tests and the results reject the null hypothesis. The Fully Modified OLS (FMOLS) estimator used to investigate the long-run relationship between variables. The results show that GDPg has a significant negative effect on SO2 emissions. It indicates that an increase in GDPg decreases SO2 emissions. Meanwhile, the SO2 emissions related positively with FDI, TO, EEp and population growth. Furthermore, the study conducts Trend Analysis to understand the monotonic trend of the data. This research provides a comprehensive policy note, where the SAARC policy negotiators raise the negative impacts of GDPg on SO2 emissions in 26th COPs negotiation of UNFCCC. In addition, also discuss the market structure for sulfur emissions as carbon credits, where the emissions sinking countries are get benefits from it. The demand for energy is growing and used of natural resources for energy production increase like coal, natural gas and fossil fuel. These resources are environmentally degradable and needs to decrease their consumption level otherwise the subject of the environment remains unsolved. Therefore, all countries need to require sustainable growth for economic development. Supervisor:- Dr. Saud Ahmed Khan Co-Supervisor:- Dr. Aneel Salman