One of the biggest problems with capitalism (the unregulated or badly regulated variety), is that it's extremely pleasing to humans. Some folks can get really rich, while everyone has easy access to lots of fun, delicious, convenient, interesting stuff.
Fast food is a great example. There's no real reason why it can't be healthier and less wasteful, other than it's cheaper to be unhealthy and wasteful, and people are designed to crave fat, salt, and simple carbohydrates. And it's easy and fast! So despite the health dangers and the obvious wastefulness, we keep going with it.
That's true I agree. But it's far too glib to argue by extension that all the things we do that damage the climate are frivolous luxuries and unnecessary lifestyles, sold to us by capitalism. Heating, transport, electric power and construction materials, which are the 4 really big problem areas, are all essentials. Even if we all lived in a communist commune, we would have just the same issues with these.
Scapegoat hunting gets us no further forward and just antagonises sections of the public who we need to engage, so in fact it sets us back.
The problem certainly is that we will all need to give some things up and probably become poorer, at least for a while. It seems to me we do need to refocus on different priorities. We can't allow people who are already poor to become even poorer, so that will mean we will need more wealth transfer from the affluent. We will need to challenge some traditional assumptions about what we need to have - e.g. will city people continue to run cars? Will we still be able to buy beef and lamb to eat? Will we still be able to heat our houses so that we do not need to wear sweaters indoors? Will we be allowed to run air conditioners? It seems to me this requires some real leadership, to introduce people to new ideas about what they aspire to in life and how they measure success. That's quite a challenge. But I think a lot of the changes will make us healthier, so that could be one angle to exploit.
Where I agree with you 100% is that further regulation of business by government is needed, to get the engine of capitalism pulling harder in the right direction (It is already pulling: just look at renewable generation and electric cars.) This is the continuation of the well-established ratchet mechanisms to control capitalism that we have used for over a century, on pollution, competition, safety at work and all the rest of it. We just need to apply the right legislation and enforcement regimes.