It's not possible, because pollution is an externality[0], something that's well known to destabilize free markets. Without regulation, purely profit driven actors have no incentive to reduce pollution one bit, since doing so gives them an economic disadvantage against their polluting peers.

0: https://en.wikipedia.org/wiki/Externality

If you were allowed to sue polluters for damages to your property is a common example I've seen. So for example you notice your building is being blackened and sue the coal fired plant down the street for the cleaning fees to restore it's facade.

Sounds good but it is totally impractical if you've had any experience with the legal system.

Tort law. It was the government, that prohibited suing polluters in the first place (in the name of a progress). Free-market cities probably wouldn't have ICE cars or fabrics nearby, because it would be prohibitively expensive to buy a permission to pollute from each land-owner in a city.

I think biology would have "solved" the problem in this case. Without regulation and sustained pollution, the population would eventually decrease enough (through migration and increased mortality rate) to reduce pollution.