Climate change is not a “natural” disaster, but a creation of the system that is aimed in pursuit of private profit at increasing scale. The implications and effects of climate change can be considered as one of the key factors in determining not only the welfare of human being but also the existence of other life forms and our planet. The principal submission of this paper is, extending and advancing the insight of Dr Mahbubul Haq and his team’s work on (...) Human Development Index, to another important step by including the negative impact of climate change. This paper uses carbondioxide emission of a given country as a proxy to capture the adverse effects on climate change and incorporates that into the HDI in a way that higher carbondioxide emissions lowers the HDI and renamed it as Clean Air Adjusted HDI. The new index changes the current HDI ranking of countries by pushing down the countries with heavy air pollution. Findings of this study can be useful specifically to countries with higher level of emissions to reconsider their relative ranking in terms of Clean Air Adjusted HDI, to bring down the emission levels. Further, International Agencies work on Human Development can give country specific recommendations to improve HDI ranking and also to mitigate adverse consequences on the environment. (shrink)