Right, and a cap and trade system is designed to tilt the balance towards the alternatives to encourage their development. The best part about the system is that it's not a "do this our way" kind of mandate. Businesses and individuals are free to come up with methods on their own, competition will demonstrate which is the most cost-effective. Even the emissions credits are a competition. If your business comes in "under the cap," you have credits to sell to a business that doesn't, and the price is not dictated by the EPA. A competitive advantage. It's a "free market solution to a serious problem" and the model was very successful in reducing lead emissions as well as pollutants like sulfur dioxide.
At least, that's how Republicans were explaining it to me up until November 2008. Suddenly Republicans everywhere were attacking an idea they invented as "socialism" and "redistribution of wealth." Instantly, every conservative voter forgot that Newt Gingrich, Tim Pawlenty, Mike Huckabee, John McCain, Sarah Palin all supported the idea. ("Global warming is felt most strongly in Alaska" - Palin) They forgot that Reagan and both Presidents Bush implemented or expanded upon a cap and trade plan.
Coincidentally, I'm sure, this flop happened exactly when a Democrat took the white house.