To answer the simple part of the question first, yes, that is what the science shows. Carbon emissions are causing harms, from health outcomes to premature deaths in Canada, etc., and climate events. The economics show that this is already more costly than profitable. It's just a question of who bears the costs.
I agree with you that a first best solution would be to internalize those externalities and have higher prices on carbon-emitting activities, but I think we also need to work on the financial system. That's why I tried to outline what's going on there in terms of the bank lending.