Carbon Offset Markets in freefall

One of the key mechanisms of Cap-and-Trade - the way that Carbon Dioxide emissions will supposedly be rolled back, in fact - are Carbon Offsets. Essentially these are credits from the government to companies that reduce their emissions, that companies can sell on an exchange (sort of like stocks).

Well, not only are existing carbon markets notoriously corrupt, the bloom's off the rose:

Banks and investors are pulling out of the carbon market after the failure to make progress at Copenhagen on reaching new emissions targets after 2012.

Carbon financiers have already begun leaving banks in London because of the lack of activity and the drop-off in investment demand. The Guardian has been told that backers have this month pulled out of a large planned clean-energy project in the developing world because of the expected fall in emissions credits after 2012.

Let's see: a government Rube Goldberg financial contraption that nobody would want, other than for the government mandate, in trouble due to perceived lack of government mandate? Yup, that's about it.