Sounds very similar to the Renewable Obligation Certificate scheme. If energy companies don't meet their obligations to meet renewable energy generation targets, they are fined and the money distributed amongst the individuals/organisations who did meet the targets. This works right down to household level - you can get ROC payments if you have a PV roof, for example.Well, I hope they figure it out. I certainly don't know how to make it work, except to change it from a trading system to one in which people get rebates from the government for any carbon allowances they dont use after x months. In other words you increase the tax on emitting carbon massively and give the cash to those who emit very little.
So I don't see why it shouldn't work for TEQs too - good idea, Tess. You might just have cracked it!