Capitalism could solve this no problem if we just taxed externalities. Don’t even have to hit every level of the supply chain, just a big tax on fossil carbon removed from the ground, and maybe another tax where it gets transformed into plastic (a sort of externality-added tax).
The market then decided what’s still worth making and what’s not, based on the total cost including the new taxes, weighed against how much people are willing to pay for the stuff.