This isn't only sunk cost, it's attributed to different budgets. You would struggle to get many people to accept the subsidy exists. Likewise in car manufacture, or aircraft, or almost any established industry with a large cost/price distinction and externalities unmet.

All gas and oil has fugitive C02 issues. Look what happened with that gas storage well in California which had months long leaks. Were the owners required to offset the extra CO2? Or the gulf oil leaks which have been continuously flowing since the sixties? Or tar sands?

Nobody budgets the remediation cost into the unit cost of the energy.