Industrial growth, economic development and population growth are negatively affecting the environment while inefficient utilization is rapidly depleting natural resources. Higher demand of energy and industrial goods are creating water and air pollution while demand for housing and agriculture goods result in deforestation. These all factors have dire consequences for the environment resulting in climate change and global warming issues which ultimately affect human lives. Effective governance is essential to deal with currently prevailing climate challenge, extreme changes in the ecosystem and to fully enjoy the nature. The present study takes 2 and 2.5 as environmental measures while Governance, Gross Domestic Production and its square, Energy Consumption and Trade are taken as explanatory variables. The study used world bank panel data set of 160 countries for the period 1995-2017 as overall sample. The analysis was also undertaken at disaggregated level for high, middle and low income countries. It is evident from empirical evidence that by adopting good governance strategies, we can abate the environmental damage and hence ameliorate the global warming issues which are badly affecting the human lives as well as the mother Nature. Supervisor:- Dr. Iftikhar Ahmad