You know what's the problem with that idea? There are no "sequestration and efficiency innovations".
Sequestration doesn't work and takes too much energy, and efficiency cannot be improved much thanks to thermodynamics.
Besides, if the IPCC is correct about how bad CO2 is, the only sensible cap for emissions is zero. You don't get there with tiny improvements in efficiency.
Obviously. I'm non-sarcastically saying that cap-and-trade won't work, because any meaningful cap is unrealistic to achieve. The political reason is: We want cheap energy. The politically acceptable choices boil down to burning coal or gas, no matter how bureaucracy is layered on top.
Sequestration doesn't work and takes too much energy, and efficiency cannot be improved much thanks to thermodynamics.
Besides, if the IPCC is correct about how bad CO2 is, the only sensible cap for emissions is zero. You don't get there with tiny improvements in efficiency.