From what I understand about carbon trading is that inefficient countries can buy carbon polluting credits from more efficient countries who excede their carbon emmission targets.

For example, Canada, being less efficient than say Sweden can permit its less efficient industries (and hence firms) to buy carbon credits from Swedish firms who are not emmitting at projected levels. This enables some countries and firms to strive for efficiency, and in the long term save money (in the form of Kyoto polltion taxes applied by their governements). It also allows late adopting countries and their firms to buy time by paying higher pollution taxes.

The idea is great, but as long as the USA remains offside I do not really see how it can go anywhere. Furthermore, who is to say what is the acceptable level of carbon emmission, and will consumers be willing to foot the bill for efficiency?

Let me know if my train of thought is correct.