The conflict between economic growth and keeping greenhouse gases (GHG) at controllable levels is one of the ultimate challenges of this century. The aim of Kyoto Protocol is to keep the level of carbon dioxide (CO2) below a certain threshold level. The purpose of this paper is to study the effect of CO2 emission on economic growth by conducting the regional analysis of PIC nations i.e. Pakistan, India and China. The study also provides the detail information regarding the atmospheric emission by applying decomposition analysis. It is suggested that environmental policies need more attention in the region by keeping the differences aside. So, the emission trading is considered to be the new concept. The approach should be introduced to tackle down the global warming in the region. Now it is time to respond because the low Carbon Economy is the reality.