This paper examines whether the companies that have greater reduction of carbon emission would have more positive annual stock returns. Moreover, the study investigates whether the positive market reaction is enhanced during the period when the climate change become more severe. The empirical result shows that stock return would be positively influenced with more carbon reduction tested by GLM model. Furthermore, the effect of reduction of carbon emission on stock returns appear to be moderated by the increase in global temperature, which causes global warming, climate change and other measures for weather extremeness. There exists few, if any prior study that address the extent to which effect of carbon emission reduction would be enhanced with the rate of global temperature rise, which may cause substantial and dramatic climate change.