This is taking things to an extreme, and you guys are missing the point completely. Of course the sellers of carbon-based technology (ie diesel powered power plants) would like to continue selling their kit. *BUT* if you tax such technology high enough, the renewables industry gets a leg up in the cost-per-kilowatt measurement.
The idea is *NOT* to punish the existing polluting co2 generators but to make unatractive the idea of Co2 emiting NEW POWER PLANTS, which is where the "cost per Kw" calculation is done at the COST ANALYSIS phase of a NEW PROJECT.
Thus, Kyoto works mostly to encourage transition to renewables IN NEW DEVELOPMENTS. Of course the existing polluters would just pay a fine, but that´s not where the action is, the action is the continuous influx of NEW POWER SOURCES added every year to keep up with demand as industrialization and population expands.
Just my $0.02 FC -- "The purpose of computing is insight, not numbers." Richard Hamming - http://en.wikipedia.org/wiki/Hamming_code