Proof of Work used for decentralized consensus is maximally wasteful by design. It has to be a race to burn more resources than anyone else can. It's unfixable.

Governments already have regulations for energy efficiency, waste and pollution, and for most things it's possible to negotiate reasonable limits.

For PoW it's not possible. If you put an upper limit on its wastefulness, it'll be a limit on its security. Even if we had a Dyson Sphere, PoW would eventually eat more than half of it just to be secure.