As many as 195 countries have signed a global climate change agreement at the Conference of the Parties 21 (COP 21) held in Paris, France.
The deal, which is termed as ‘historic’, adopted a 31 page legal text to reduce global greenhouse gas emissions.
Under the terms of the deal, governments agreed to maintain global warming to well below 2°C above pre-industrial levels and to limit the increase to 1.5°C.
As per the deal, which is expected to steer towards a sustainable and low carbon future, the participating countries are required to meet every five years in order to review their climate plans and set more ambitious targets to meet the target.
Additionally, $100bn is planned to be invested annually by the developed countries to tackle the climate change until 2025 when a new collective goal is scheduled to launch.
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."
EU said that a robust transparency and accountability system will track 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."
Non-profit organization Carbon Trust said that the deal provides businesses, investors and cities the certainty required to accelerate efforts to tackle climate change.
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."
Image: Developed countries plans to invest $100bn annually to tackle the climate change until 2025. Photo: courtesy of worradmu/FreeDigitalPhotos.net.