Depends on what you mean by “friendly.” If you’re making a disposable party cup and have to either give all of your buyers a way to recycle it through you or pay insert-new-government-agency-here to take care of that for you, the “under the rug” method of externalizing costs would be (mostly) eliminated.
A lot of things we buy today would stop looking very attractive, though. Good for the planet we live on, yes. “Friendly” to the market? As friendly as I get. 
