In theory, carbon taxes are going to wean the alleged bad guys off CO2 emissions over decades. We’ll see more when the bill emerges from Congress. ‘Bama wants a California-grade bill that he can use to lead the hold-outs by example. Maybe we’ll have an indication by the end of 2010….
Liquid fueled rockets use liquid fuels like hydrogen or kerosene (by any other name) mixed with cryogenic oxygen. Pure oxygen, as Brian mentioned, is not flammable. For that matter, neither is pure hydrogen, although you could suffocate in a room full of it. A mixture of 96% hydrogen + 4% oxygen is explosive.
The oxygen is used in both cases to make it possible to burn the fuel. Burning cryogenic hydrogen + oxygen = water vapor and a bunch of heat energy. Kerosene has some relatively small advantages, but it pollutes as a rocket or jet fuel.
Do a site-wide search, though, because FF has some potential applications as a single stage to orbit energy and/or propulsion source. Guaranteed to make you swear off of chemical rocketry, lol.