A global climate change agreement has been signed by 195 countries worldwide for the first time ever, which is aimed to reduce global greenhouse gas emissions.
The ‘historic’ deal has been signed at the Conference of the Parties 21 (COP 21) held in Paris, France.
As part of the deal, the world leaders have consented to maintain global temperatures to well below 2°C above pre-industrial levels, and to limit the increase to 1.5°C.
The agreement is aimed at a sustainable and low carbon future for the world, for which greenhouse gas emissions need to be stopped in the next half-century.
It requires the participants to meet every five years for review of their climate plans, and decide on upgrades to the targets in order to ensure necessary actions are being taken for the objective.
Developed nations have committed to a collective $100bn investment annually for the climate change initiative until 2025, when a new collective goal is set to be introduced.
UK energy and climate change secretary Amber Rudd said: "We have witnessed an important step forward, with an unprecedented number of countries agreeing to a deal to limit global temperature rises and avoid the worst impacts of climate change.
"This is vital for our long-term economic and global security.
"This deal will ensure all countries are held to account for their climate commitments and gives a clear signal to business to invest in the low carbon transition."
Thorough transparency and accountability steps will be taken under the initiative, which according to the European Union, will enable in evaluation of progress towards the long-term goal.
US President Barak Obama said: "As technology advances, this agreement allows progress to pave the way for even more ambitious targets over time."
Carbon Trust COO Michael Rea said: "Now is the time for a step change in our levels of effort and action.
"Companies now need to seriously consider how this will impact on their value and future profitability."