But isn't it the point to make, e.g., steel and concrete construction include external costs? Vs, e.g. wood? Or renovating buildings instead of tearing down and rebuilding?

You could also have tax paid off over time. E.g. a concrete building that lasts 60 years, vs a stick build that lasts 20. Bricks are frequently recycled, >100 year lifetime.

I'm open to hearing counter-examples, i.e., where there is an external cost to not manufacturing a high CO2 cost product. The examples I've seen so far are really arguments about competition with BRICS economies, and their bizarre exemption from controls.