Introduction Market regulation is essential in any country, and governments around the world have enacted various policies to ensure fairness in the economy. For example, regimes primarily use two practical approaches such as monetary and fiscal strategies, to control multiple economic forces from causing damage to financial systems. The Paris Agreement is an international initiative that engages the economies of various countries around the world (Han, 2017, p. 337). The international community entered an accord that intends to solve some of the challenges associated with climate change globally. This paper explores the role of government intervention in the market, the Paris Agreement and proposes various solutions to barriers preventing the transnational society from achieving the targets of the accord. Why the Government should Intervene in the Market Through Economic Policies The primary reason why the government gets involved in the marketplace is to ensure proper allocation of resources to what is deemed as a more appropriate distribution. Moreover, it also intervenes to address the problem of inefficiency. Economists note that an efficient market has an exceptional allocation of resources, whereas inefficient marketplaces may have an uneven distribution of resources (Moon and Pino, 2018, p. 119). In essence, the government formulates various policies in an attempt to combat these imbalances through taxation, regulation, and subsidies (Gunawong and Gao, 2017, p. 153). Therefore, multiple regimes participate in the growth and development of numerous markets due to several reasons. Maximizing Social Welfare The social welfare of consumers in a market is often a significant factor the government tries to protect. Various market structures such as oligopolies and monopolies may have specific characteristics that may limit the growth and development of the market. For example, in a poorly regulated market, cartels and other categories of firms can exercise monopolistic influence, thereby increasing the cost of entry and undermining infrastructure development (Dawid and Gatti, 2018, p. 63). The absence of regulatory oversight can lead to adverse externalities without ramifications. As a result, it leads to diminished resources, suppressed innovation, and reduced trade and corresponding advantages. Moreover, the government also boosts social welfare through the management of public goods. For example, public parks are depletable assets that do not have the ownership of an individual. It suggests that no price is allocated to the utilization of this commodity, and everyone can use it (Fu, 2020). In essence, these resources are quickly depleted, and the government intervenes to prevent them from being exhausted. Macro-Economic Reasons The economic landscape of a country is vital for its development of the Gross Domestic Product (GDP). Therefore, various administrations get involved in the economy to address the damages caused by naturally occurring economic events, as illustrated in figure 1 below. Downturns and inflation are components of the business cycle, but they can have detrimental consequences on the consumers (Dawid and Gatti, 2018, p. 63). As such, administrations mani