Energy industries are given a certain amount of CO2 that they can omit. If they go over that amount, they must by CO2 credits. This creates a new commodity that can be traded like stocks, gold, etc, where the rich get very rich, and the average American picks up the tab in higher energy prices.
FYI to everyone. the cap & trade exchange is in - Chicago! Right next to the other pirates at the CBOE (options) and the CME (commodities).
I would bet almost anything that the CBOE helped O in the financial terrorism of October 2008 with futures and options to destroy financial companies.