First defector wins cheaper goods than everyone else.
The only way it could work is if the USA, China, the EU, Russia, Japan, and all the other major powers and modern economies all formed a tight unified front. I see basically zero chance of that happening.
The US, EU, and their orbit seem like the only ones that care even a little, and they are doing half measures at the very best. China pretends to care and burns more coal. Russia’s entire economy is dependent on fossil fuels, as is much of the Middle East.
Then keep in mind that any measure that squeezes the middle class is going to provoke a huge populist backlash. Do anything that impoverishes working people and climate change denialists will be voted in.
Make low carbon energy cheaper than fossil fuels or prepare for 800+ppm CO2. That’s how I see it.
What if all of the developed nations agreed to impose punitively high tariffs on all imports from developing nations that did this?