Despite an enormous amount of work done to persuade the world of the dangers of climate change and the need for quick corrective action, there is little progress toward a global compact for managing climate change. In fact, there are some basic differences of perspectives on climate change policies between developed and developing countries which may bedevil future global agreements on climate change for quite some time. Among the reasons for these differences are the issues of historical responsibility for carbon emission by the developed countries, the need for lifestyle changes in both the developed and developing countries, suspicion in the developing countries about the motives of developed countries and too much focus of current discussions on the very long-term and global effects of climate change. This paper presents an approach where the perspectives of the developing and developed countries are sought to be reconciled. A credible global compact for climate change must satisfy five criteria: it must be comprehensive, equitable, realistic, efficient and effective.