This comprehensive research explores the intricate intersection of the carbon (C) economy and global policy, addressing critical issues that resonate across economic, societal, and environmental dimensions. The study thoroughly examines the profound impact of C emissions on both the economy and society, highlighting the urgency of exploring effective mitigation strategies. It delves into the complex interactions between economic activities and the services provided by natural systems, shedding light on the symbiotic relationships that can support sustainable practices. Additionally, the study rigorously investigates C governance systems and strategies, analyzing tools designed to internalize externalities. Among these are emission taxes and C markets, with an evaluation of their efficacy in shaping policy regulations and their potential for promoting sustainable solutions. The research goes beyond analysis, offering practical insights into the governance mechanisms that can steer economies toward circular and low-emission models. The study also addresses the social implications and equity considerations inherent in climate change mitigation, providing a thorough examination of global engagement with the C economy and policy. By identifying key challenges and promising opportunities across diverse regions, the research uncovers pathways toward inclusive and fair strategies for sustainable solutions. This chapter emphasizes agroforestry (AF) practices as a pivotal component of the C economy landscape. Through detailed exploration, the study highlights AF’s potential to achieve both ecological and social objectives, underscoring its role as a climate-smart agricultural practice that creates new commercial opportunities for smallholder farmers. In conclusion, this research offers a profound and comprehensive understanding of the complex field of C economics. By providing valuable insights, it is poised to inform the development of robust and effective policy strategies, offering timely guidance as the global community tackles the multifaceted challenges of climate change.