Depends on how strong such institutions are and how much likely they are to survive the test of time. The destruction of welfare-states that were considered robust and eternal in their days of glory show that there are limits to the capability of capital-restraining institutions to survive.
Conservative parties as well seem to have little problems crying over whatever they see as being harmful to the markets, environmetal regulations included. If that wasn't enough you have the problem of industries moving to third world countries to avoid regulatory institutions, which both doesn't help to the economy of countries with such laws, and contaminates impobrished countries with little to no means to clean up environmental contamination. I respect your position, but honestly, in my opinion, the captains of industry will always find a way to scrap by regulations.
You might find interesting reads in ecosocialist theory. Ecosocialism enjoys a much varied popularity among the natural sciences and environmental economics than other parts of socialism, and there are entire books dedicated to adress the current issues by both an environmental and anti-capitalist perspective (which is the only appeal of it, tbf). You might want to look at them.