[algo646464]

The free market cannot suitably address the "tragedy of the commons".

If all companies currently follow expensive but environment-friendly processes, a rouge company can undercut them by following a cheaper but environment-harmful process. This will either force other companies to follow the rogue company, or they go out of business.

[perl4ever]

"The free market cannot suitably address the "tragedy of the commons"."

You seem to be implicitly saying that property rights cannot be established and enforced, as this is how markets are used to solve such problems. Similar things have been done though, no?