So, if a skeptical friend hits you with the "saturation argument" against global warming, here’s all you need to say: (a) You’d still get an increase in greenhouse warming even if the atmosphere were saturated, because it’s the absorption in the thin upper atmosphere (which is unsaturated) that counts (b) It’s not even true that the atmosphere is actually saturated with respect to absorption by CO2, (c) Water vapor doesn’t overwhelm the effects of CO2 because there’s little water vapor in the high, cold regions from which infrared escapes, and at the low pressures there water vapor absorption is like a leaky sieve, which would let a lot more radiation through were it not for CO2, and (d) These issues were satisfactorily addressed by physicists 50 years ago, and the necessary physics is included in all climate models.

http://www.realclimate.org/index.php/archives/2007/06/a-saturated-gassy-argument