The Artificial Intelligence (“AI”) revolution promises significant economic progress and development, as well as innovative solutions for addressing environmental damage and climate change. However, AI use has resulted in higher carbon emissions. In response to growing scrutiny over AI’s carbon footprint, the International Monetary Fund (“IMF”) has proposed an international carbon price floor (“ICPF”) to put a minimum price on carbon depending on each country’s development level. The ICPF leverages market forces to efficiently ramp up the Nationally Determined Contributions of states under the Paris Agreement and internalizes the social costs of carbon emissions. However, its seemingly straightforward benefits mask entrenched inequities. This Note provides a critical analysis through a law and political economy (“LPE”) framework. It examines the role of market and political structures in shaping the implementation of the proposed climate policy, and how these affect the development and use of AI in smaller companies, in particular, and Global South countries in general. This Note aims to dispel the notion that AI policies relying on market efficiency are neutral and apolitical. Through the LPE lens, this Note argues how climate policy must move beyond the illusion of market efficiency to foster a more inclusive, equitable, and democratic global change.