> It creates an incentive where someone doesn't follow the laws, burn everything they can to accelerate their economy, and take industry from other countries.

I think the flaw in this thinking is thinking that burning things is the cheapest way to get energy.

Oil processing and extraction is a complex industry which requires a huge continued investment. Coal requires massive mining operations. Natural gas is probably the least intensive of the burny things, and it still requires a pretty advanced pipeline to be competitive.

Renewables are relatively cheap one time purchases. Save energy storage, the economy that is most competitive at this point is one powered by renewables.

That transition is already happening in the US without a massive government regulation/mandate. In china, it's happening a whole lot faster because the government is pushing it. And the chinese economy is at no risk of being outbid by smaller economies burning fuel.

The main reason burning remains a major source of fuel is that for most nations, the infrastructure to consume it has already been built. It's not because it's cheap.