Edit: I am getting a lot of down votes so let me clarify: if external costs are not internalised, humans will ignore it.
Internalising the cost does not even need to mean tax. Many clothing brands in my country, even the budget brands (think Walmart), have been pressured by consumers into using more ethical factories. The same could be done by forcing companies to disclose what factories they use and the factory carbon footprint.
It could have been non-polluting, but instead of redesigning, it's easier now to get nations to compete against each other for the location of that plant - and as part of that competition, relax the environmental protections. The "freedom of movement" for corporations (freedom of movement of capital?) has plenty of benefits, but this is one of the negative side effects.
My solution is for all governments to take responsibility, tax pollution and for consumers to understand the environmental costs of products, possibly by forcing disclosure.
I don't understand what your solution is. Ban importing goods? Tax imported goods based on factory pollution and standards?
Knowing the solution is the easy part. The hard part is how to get there, and how to keep the solution working.
"All governments taking responsibility simultaneously" is not something that ever happens. And even if it did, in a moment of selfless reflection of all global leaders, weaker economies will still have a powerful incentive to relax the standards to compete better with stronger economies. I don't have a solution, I'm just saying how things are. Restricting the ability of multinationals to play countries against each other would help in this matter, but it would probably gum up the economy too hard to be worth the attempt (not to mention, it would have to be another thing most governments would have to agree on simultaneously, otherwise the ones to attempt it immediately lose).
The overall point is: it is a tragedy of the commons, just not a local one - an international one. The solution to tragedy of the commons is to have a higher authority unilaterally force participants to limit their use of the commons. But we don't have any higher authority above nation states, so we're ill-equipped to solve tragedies of the commons at international level.
Yes, What is difference between ie. CO2 and other thrash we already producing (as society). So far we didn't accepted that we need 'pay' or handle CO2 as rubbish (while PPM constantly growing). But take your dog poo in park or pay fine (Plastic anyone?). Again, What is difference ?
Edit: I am getting a lot of down votes so let me clarify: if external costs are not internalised, humans will ignore it.
Internalising the cost does not even need to mean tax. Many clothing brands in my country, even the budget brands (think Walmart), have been pressured by consumers into using more ethical factories. The same could be done by forcing companies to disclose what factories they use and the factory carbon footprint.