[jakewins]

This is already happening with the EU cap-n-trade scheme. Because it was designed to ratchet, it initially had nearly no effect - but in two years quotas will have dropped 21% from the ones set in 2005; by 2030 they will force CO2-equivalent emissions down 43%.

Companies that emit CO2-equivalent emissions now will either need to retool to lower emissions, or they need to buy emissions certificates from other companies that have retooled.

The end result is much simpler than introducing additional labeling of products for consumers to interpret. Instead, the externalities are removed and prices signal the total cost of production, as they should.

https://ec.europa.eu/clima/policies/ets_en