I've got a twist on this basic idea. Fund basic income with a large tax on various CO2 producing activities. With the idea that - on average - people can pay this tax out of the basic income received from it. And people will have direct incentives to find ways to reduce CO2 consumption. Then get rid of silly specific legislation that tries to achieve the same goal in less successful ways. Thus fuel efficiency, Califo…
This idea seems to incur very high bureaucracy costs. What are CO2 producing activies? How much are each of them taxed? Who measures the tax and is responsible paying for it? Etc. One selling point of basic income is that there's no loopholes and there's very little bureaucracy costs, therefore a larger portion of the money is actually used for consumption instead of doing unnecessary (for society) work.
You can then offer tax credits for CO2 capturing (with the burden of proof on the claimant).