Is carbon permit trading by hedge funds likely to sabotage green energy revolution?  Yep.  Gar is right with this one.

"...put a carbon tax in place or auction permits already. Forget game-playing CDM and the whole additional new carbon lobby that secondary carbon markets create."

That secondary carbon permit market will be the ultimate GHG reducing policy killer.  As hedge funds scam and energy prices to consumers rise, industry friendly politicians will say "See, we told you so, government intervention is destroying the economy."

That will be the end of green politicians and GHG climate disaster cure.

Is this why many CEOs favor cap and trade?  That's my suspiscion.

But of course, withdraw subsidies for carbon heavy industries first.  Before imposing taxes or permits.  Subsidy diversion to renewables and conservation might be enough.  Tackle a tax or permit system if it isn't enough to propell energy revolution.   50 billion per year ought to be possible with diversion alone.