While a 'Sky Trust' has nice equity connotations, it is worth considering what likely effect it would have on GHG emissions. Whereas a government trust fund could be legally required to fund only projects likely to generate real emission reductions in the near to medium term, individuals getting 'Sky Trust' income are more likely to spend it on goods and services that actually increase GHG emissions.

While I have my criticisms of the Sky Trust idea, it is part of a cap - meaning by its nature it reduces emissions. In terms of funding alternative energy, this could and should come from sources other than a tax on carbon. Taxation can be done for two purposes - to raise revenue or change behavior. With something like carbon emissions where the ultimate goal is getting using down to zero or close to it, it makes no sense for green energy infrastructure to depend on that as a source.

And no the need for public funding for infrastructure won't disappear when the infrastructure is green. No transportation or communication infrastructure more advance than the wagon train operates without public right of ways; heck back when horse and foot were the major transport means, you needed public rights of way and protection against bandits to keep the paths clear.