It's hard to find any clear articles that show exactly what is proposed to be taxed... about the only one I could find was this one:
http://dancass.com/static/files/assets/2edd1ed8/MPCCC_Carbon_Price_Mechanism_Final.pdfSo it's emissions that are being taxed, not carbon per se. So the price of a fishing rod won't go up just because it's got carbon in it.
As far as I understand it the idea behind this is to make it less attractive to pollute the atmosphere, because it will cost more if you do. And as it's a trading scheme, you would actually get paid if you start planting trees (which reverse the trend of increasing CO2 in the atmosphere).
To my mind it's a great idea, as it hits the bottom line of companies. The profit/loss statement is the most important thing for most companies, so if you start coupling emissions to profit, companies will work very very hard to reduce their emissions.
The other part of the scheme (which won't be introduced immediately, but is planned to be introduced later on) is to have a floating price for carbon credits, so the marketplace decides what price carbon pollution would cost.
To my mind this is diabolically clever

It means that the tried and true forces of market economics will hit polluters over the head with a big stick if they step out of line. And it will reward companies that actually look after the environment, with the best gift they can recognise -- money.
I think that it won't be long before all the other major developed countries follow suit (if they haven't already). This scheme promises to save the planet, which I quite like the sound of