You are right. And the simplest solution to this is to increase the cost of fuel /energy (typically by increasing taxes on it). This automatically directs us in the right direction. More fuel efficient cars. Or public transport and bicycles instead of cars.
Same with electricity. It also has to cost more. Right now electric cars are not very good for the environment either. They are bigger than necessary and consume too much electricity.
Unfortunately governments have never managed or dared to increase it. And unfortunately it often creates a lot of tension among the population.
The population likes to complain that it is the banks which are to blame (because the invest or lend to oil companies) or that the oil companies are to blame. But it is the people using the cars (unnecessarily big cars) which are to blame. And the politicians which do not enforce a higher cost on burning energy, by not increasing taxes on energy usage.
Due to the war in Ukraine we finally see some movement on this and it will become more important with energy efficiency and finally we see even governments send out flyers and inform of methods to save on energy. Why did they not do that before? There has been those COP meetings with presidents for over 20 years, but they have not been capable of doing the most basic things because they are afraid of affecting growth.
Unfortunately they don't understand that a fuel efficient car can transport as much as a non-fuel efficient car.