Here's an interesting and informative video on the big mess of emissions trading. It's particular to New Zealand, but much of it applies anywhere. It's via Roger Pielke Jr -- read the comments under his post, as it seems some of the economics in the video aren't really correct. In general, though, it shows what a clusterfuck the emissions trading scheme can be, which is simply a reflection of the basic problem there is just no getting around: reducing atmospheric GHGs is going to cost a lot of money, and not reducing them is going to someday cost a lot of money. You can come up with any scheme you want -- it's going to cost a lot of money. The only solution is development of a cheaper noncarbon energy source than fossil fuels. Period.