The term ‘Social Cost of Carbon’ (SCC) quantifies the economic harm resulting from a metric tonne of carbon dioxide emissions, encapsulating the long-term impacts on health, agricultural productivity, property damages from flooding, and other climate-related effects. This concept is critical for policymakers as it provides a tangible monetary value for the societal trade-offs involved in carbon emissions, thereby assisting in the formulation of effective climate policies and regulatory measures. Understanding SCC aligns with UPSC's emphasis on sustainable development, climate justice, and the interlinkages between environmental policy and economic planning.