Just say no to 'Cap & Trade'

Got any good Web sites that explain how Cap & Trade works? I keep hearing that term thrown around but don't know much about it.

In a nutshell:

The gov't will set a "cap" on the total amount of carbon dioxide that U.S. manufacturers can discharge. Each individual plant would be allowed "x" amount of carbon dioxide emissions. Exceed that amount and that business pays a penalty (tax) on it OR, you can buy (this is the "trade" part) more discharge capacity (carbon credits) from plants that stayed below their limits.

So who's going to keep track of the score on all this? And how will companies find other companies to buy credits from?

38. The scheme for the new institutional arrangement under the Convention will be based on three basic pillars: government; facilitative mechanism; and financial mechanism, and the basic organization of which will include the following:

World Government (heading added)
a) The government will be ruled by the COP with the support of a new subsidiary body on adaptation, and of an Executive Board responsible for the management of the new funds and the related facilitative processes and bodies. The current Convention secretariat will operate as such, as appropriate.

To Redistribute Wealth (heading added)
b) The Convention’s financial mechanism will include a multilateral climate change fund including five windows: (a) an Adaptation window, (b) a Compensation window, to address loss and damage from climate change impacts [read: the "climate debt" Monckton refers to], including insurance, rehabilitation and compensatory components, © a Technology window; (d) a Mitigation window; and (e) a REDD window, to support a multi-phases process for positive forest incentives relating to REDD actions.

With Enforcement Authority (heading added)
c) The Convention’s facilitative mechanism will include: (a) work programmes for adaptation and mitigation; (b) a long-term REDD process; © a short-term technology action plan; (d) an expert group on adaptation established by the subsidiary body on adaptation, and expert groups on mitigation, technologies and on monitoring, reporting and verification; and (e) an international registry for the monitoring, reporting and verification of compliance of emission reduction commitments, and the transfer of technical and financial resources from developed countries to developing countries. The secretariat will provide technical and administrative support, including a new centre for information exchange [read; enforcement].