The only thing I would say to that is that I wouldn't necessarily get involved with a carbon tax myself, but there are some recyclables that are very profitable, most notably aluminum. There's the re-smelting of aluminum and metal.
There are others where the market is not so lucrative currently. That can change. But for those products, some incentive via a tax credit or to encourage people.... Also, maybe there is a product that can be made from these materials if someone were given the business opportunity to do so and perhaps get credits for doing that. That's the way I would suggest doing it in order to build markets for these recycled materials.