I feel like YOU are missing the point. Even tho you say exactly why this matters the most.
Yes market respond to demand. Compa oes DGAF whether they pollute, only that people buy. That’s why the ONLY solution is that all these companies are regulated to pollute less. If everyone has to, then they are still equal and people won’t buy a cheaper alternative that happens to be more polluting.
Hell, I’d go as far as to say that it only matters if the top 5-10 countries do it. If China, USA, and India don’t do this, the entire world is fucked and there is nothing to be done by anyone else.