1) we recognize the positive impacts that industrialization brings, directly and indirectly. Directly raising GDP has an indirect, positive net effect on quality of life (not spiritually or philosophically, though, I might argue; although, I only think of these things because I live in an industrialized, developed, “rich” nation).
2) we recognize the horrible impact that industrialization has on our world.
The industrialized nations are the ones leading the charge in saying, “hey, wait a minute, industrialization is bad! It’s wrecking our world and we will die a horrible death as a species if we continue at this rate so slow down!” But those nations who are just hitting their stride, so to speak, aren’t gonna stop. That’s totally unfair. They think, “what the fuck am I supposed to do? Just sit here and play with sticks? I want the money, I want the goods, I want to be a rich, developed nation.” And so they keep burning, and will keep burning, unless (IMO) the already rich and developed nations somehow help them to develop in the cleanest way possible.
I don't think you can solve these by fiat.
Governments can only realistically focus on improving the liberty and prosperity of their citizens (you know "life, liberty...).
Happiness is very subjective and I'd say in many cases comes from inside. You could be the richest, most famous and powerful person in the world and still be unhappy.
So instead of explicitly working in the cost of carbon and decreasing spending we’re going to raise prices on everything which will likely have the same impact.
By economic growth I mean actual overall economic growth. E.g. if in some location, powering something by coal is more cost-efficient than powering it by solar but you convert to solar anyway, you are limiting economic growth. I do get that it may actually make economic sense if you count third-party effects - e.g. that replacing coal with solar makes the area a much nicer place to be, increasing the value of the land. But my point is that if you truly believe that cutting emissions is a road to increasing the wealth of your nation, you should be talking about increasing the wealth of your nation and adopting policies to that end and see emissions decrease as a side-effect.
Otherwise, there is a very easy way of reducing emissions - have people emigrate, make them unable to afford housing or afford to have children, shut down manufacturing and other economic activity, destroy infrastructure or allow it to decay.
Given that a lot of people, particularly young people, are struggling in many places in Europe and do not see a particularly bright future to put it mildly, and that China is growing at a rapid pace, unilaterally stunting your already barely-there economic growth just comes off as another act of self-flagellation by Europe.
If they manage to lift those hundreds of millions of people out of poverty AND "just" keep their emissions constant, I consider that as a win for humanity.
Everyone else, especially in developed countries, needs to bring their per capita emissions radically down.
Is it though? How do we people of the Earth now win if it is 2100 and there is 2x more of us and the emissions are the same?
Depending on how you measure the CO2 emissions you could argue that not China is the first one that should take action but the ones that did most of the damage.