You don't need to tax actual CO2-producing activities. You just tax the production of CO2-containing fuels. The price is passed on to the buyer who produces C

You don't need to tax actual CO2-producing activities. You just tax the production of CO2-containing fuels. The price is passed on to the buyer who produces CO2 with them. You can then offer tax credits for CO2 capturing (with the burden of proof on the claimant).