ETS

I'm trying to get my head around the Emissions Trading Scheme. I mean I'd like to see emissions reduced - thats a "no-brainer" - but how will the ETS do that. As I understand it, nearly every New Zealander is going to be paying money. Its collected by the Government and given to people who plant forests, except the forest planters have sold their "credits" to others - who? To "emitters" I guess. So we have a money go round with Joe Blow consumer picking up the tab. But wait there's more.... Joe Blow taxpayer will have to top up whatever is collected from Joe Blow consumer. And what happens when the trees are cut down? Who pays for the loss of the carbon 'sink'? Where does the collected money go then? Do those who bought the credits loose them when the trees are gone? And how is all this going to save the planet? I presume the idea is that consumers will buy less petrol, power etc and so decrease carbon output. I remain sceptical.