One problem is the environmental effects of using a certain product, which in this situation are fossil fuels. The only solution to the problems caused by fossil fuels, from emissions to microplastics, is to decrease the use of fossil fuels period. In order to decrease the use of something, you can increase the price.
Another problem is the income/wealth/opportunity gap between people around the world. This might be solved by transferring income/wealth/opportunity from those that have it to those that don’t. It does not need to be linked directly to taxes on fossil fuels, like most other government expenditures are not linked to specific taxes.
This is not a net zero effect with lots of inefficiency. It’s actually the most efficient way I can think of, certainly more than hoping people sort and clean their recycling properly, ignoring the fact that recycling doesn’t even really work.
The whole point is to make people feel the effects of increased prices. It will mean fewer plastic toys, and toys in general since they won’t be so cheap, less flying, smaller homes and lots since transportation for longer distances is more expensive.
But that is the goal, to reduce the use of fossil fuels. Which all of our modern quality of life revolves around. And why, politically, there will not be a real solution to damage caused by fossil fuels in any relevant timeframe.