Could you be any more wrong Ray?
Free market means you pay the market price. The price is determined according to the available carbon "credits" which are capped in total.
We have no control over the price - because its a free market and the cost per tonne depends on how well polluters are controlling their pollution. Thats, kinda, you know, the point of the free market aspect of it.
The money does not go to Europe - its just the actual cost of permits thats tied to their market.
Once again things exist in "Ray World" that have no basis in reality.