The aim of the research was to characterize a new concept conducive to the internalization of external effects – climate-smart agriculture (CSA). The problem of environmental externalities appearing as a result of agricultural production was taken up. Agricultural production is a complex process which produces diverse products. The range of goods and services offered by agricultural producers goes beyond the limits defined by the market. What is especially important, in this case, is the environment- -agriculture relationship, because the environmental impact can result in changes in the quantity and quality of many environmental public goods, the consumption of which is of great interest to society. Considerations have a review character and had to indicate the validity of the implementation of solutions in CSA promoted in the context of the negative impact of agriculture on the environment. It was found that the implementation of CSA assumptions may contribute to eliminating negative stimuli of agricultural origin and limiting social benefits from the consumption of many environmental public goods.