California and Britain Climate Change "Treaty"?

The Associated Press is reporting that Britain's Tony Blair and California Governor Arnold Schwarzenegger are plotting how to get California into Europe's new carbon market as way for the Golden State to cut its greenhouse gas emissions. To wit:

Britain and California are preparing to sidestep the Bush administration and fight global warming together by creating a joint market for greenhouse gases. . . Such a move could help California cut carbon dioxide and other heat-trapping gases scientists blame for warming the planet. President Bush has rejected the idea of ordering such cuts.

Whole article here.

My Reason Foundation colleague Shikha Dalmia recently took a gimlet-eye view of Europe's carbon market and found it wanting.