Advice on the Climate Change (Emissions Trading and Renewable Preference) Bill

Recently I recommended to the Local Government and Environment Committee that the Biofuel Bill should not proceed. My view on the Emissions Trading Bill is very different; the Emissions Trading Scheme (ETS) should be implemented, and with its major design features intact.
This advice falls into three parts: the first is concerned with the Emissions Trading Scheme; the second is concerned with the Renewable Preference; and the third is concerned with environmental effects of the ETS.