Sorry to hear you got burned.......I went short after the bounce from the crash :) ....Phase I certificates will get crushed once the Poles go on-line....NBP/Power/Emissions/New ICE coal contract basket looks like a good bet once ya have liquidity.
Emissions
The reason why 2005-7 emissions prices haven't collapsed is because german utilities are gaming the market in order to justify higher power costs. Look to the 2008 futures contracts for Phase II of the EU-ETS. Phase I is "long" by 100 million credits. Just go on Bloomy and correlate...