You are correct that this is not a prisoner's dilemma, it is a tragedy of the commons[0]. However, if a wizard could magically control the "personal decisions of 99% of Earth population" and make them optimal for reducing CO2 emissions then, believe me, climate change could be trivially solved.

[0] https://en.wikipedia.org/wiki/Tragedy_of_the_commons

WDYM personal decisions don't matter? Industrial and agricultural sectors, which both in sum contribute 50% of total greenhouse gas emissions, produce what is in demand from consumers. Another 15% of emissions is from personal vehicles. Changing personal habits is the only way we can ever reach some utopian climate targets. Utopian because old habits die hard.

It is a classic cooperation problem. Perhaps not prisoners dilemma. Perhaps not at individual scale. Probably tragedy of the commons.

Cooperation is not consuming fossil fuels. Defection is consuming fossil fuels.

If you cooperate and other defects you suffer climate impact and expensive energy (expensive everything, worse economic growth than others).

If you defect and other cooperates you suffer climate impact but at least you get cheap energy (cheap everything, more economic growth than others).

People, nations, corporations, etc don’t stop using fossil fuels because they incur a penalty against their competitors if they volunteer to and their competitors don’t.