Earlier quoted context omitted.
There should be a protocol to block traffic on the upstream provider. So if someone from 1.2.3.4 sends lots of traffic at you, you send a special packet to 1.2.3.4 and all upstream providers (including the provider that serves 1.2.0.0/16), that see this packet block traffic from that IP address directed at you. Of course, the packet should allow blocking not only a single address, but a whole network, for example, 1.…
What you say already exists, hell, you can use BGP to distribute ACLs But it costs space in the routing tables and that means replacing routers earlier. It's no wonder, especially if you multiply it by thousand customers. "block all traffic from outside from this IP" is significantly easier than "block all traffic from outside from this IP to this client". And you need to do it per ISP client, else it is ripe for abu…
But you should own an AS for that?
> But it costs space in the routing tables
Not implementing my proposal leaves critical infrastructure unprotected from foreign attacks. Make larger routing tables. Also, instead of blocking single IPs one can block /8 or /16 subnets.