Just tax all fossil fuels and distribute the resulting revenue as a dividend to all citizens (to offset the negative externalities of pollution, and the increased cost of fuel).   This is morally justified because the air we breathe belongs to all of us, and anyone who fouls it should have to compensate others.   The tax rate could be adjusted to meet specific targets (like whatever the cap would have been in cap and trade).  This avoids giving big polluters a windfall in free permits, and avoids a all the loopholes in phony offset accounting.

Regardless of HOW you burn coal, you're still releasing roughly the same amount of CO2 into the atmosphere per pound of carbon burned.  Carbon Capture and Storage is still a pipe dream wanna-be-boondoggle.  Pressurized caves full of CO2 will inevitably release into the environment over geologic time.    If we ever finish digging up and burning all the fossil fuels on the planet, the climate will be fucked regardless of the speed or manner in which it's done.