@Robert

"BC? just takes the taxes and does nothing useful with it"

BC returns that money to it's residents through lower income taxes. This gives an incentive to those who use less carbon by LOWERING their total tax bill. 

I know this isn't radical enough for militant environmentalists, but in order to get the public (many of which can't afford more taxes, and don't believe this 'climate change' hooey) onside with a controversial and quite possibly unneeded tax, some governments are using a gentler approach than what you would have. 

In many ways I'm glad I live in a province with a saner view than the Federal Liberals and their gang of eco-terrorists.