The free market is already doing it, there is no need to put a drag on the productive economy while the free market discovers the real solutions. Non expert virtue signalling politicians vying for the next vote are generally terrible capital allocators.The whole point of the tax is to promote this innovation, they might be funding this innovation with this tax. Some governments don`t just tax so that they can steal.
But to argue your point.
The one time government money is perhaps needed is on those extremely capital intensive multi decade mega projects like fusion that the free market battles to make a business case for. In most cases governments just need to get out of the way instead of trying to hinder the productive economy. Sin taxes may feel like doing something but they may just be moving deck chairs around while the actual innovators solve the underlying issues. Government money can go toward research in areas that the free market has underfunded.
If governments really want to make a difference, stop the protection of bad entrenched ideas and outdated businesses through a mutually beneficial protection of those dinosaures through laws designed to protect the status quo and keep political parties well funded.
