Compromises are found iteratively - moving the lever too far creates pressure on the opposing side, and the regulation changes back.
Globalization eliminated the feedback loop. Each time the West hardens environmental standards, a some "dirty" production just moves to less developed countries, along with the jobs, knowledge and culture for achieving things. That CO2 is still emitted overseas, but we conveniently turn a blind eye to it, arguing whether we should have shorter showers or ban plastic straws. Now it's biting us hard, since it turned out those countries have much less political stability, so as the shit finally hit the fan, we suddenly have a shortage of everything.
Maybe, just maybe, having the emissions managed on the state level will let different states explore different potential trade-offs between being green and being dysfunctional, and we can hopefully find a better compromise that takes a more complete picture into consideration.