Economic instruments should deliver real environmental gains cost effectively. Environmental policies must be based on sound evidence and must not threaten competitiveness. If there is no market there is no price. But there may be cost - e.g. damage from global warming or damage to health. The Government has to estimate the externalities and then the market adjusts this estimate.
Government favours economic instruments.
But, perversely, all such costs reduce the ability of a business to invest in environmental improvements, particularly those businesses operating in global markets where such taxes are not universally applied. There is a danger of driving businesses off-shore.