1.2 Recent events
In the eight months since publication of the Strategy, issues of energy supply, affordability and climate change have been prominent:
- International crude oil prices increased by around 75% to US$130 per barrel from 12 October 2007 to the end of June 2008, and New Zealand petrol and diesel prices at the pump rose by around 34% and 65% respectively.
- Rising energy prices have increased household costs.
- Low rainfall in the first half of 2008 and low hydro lake storage levels generated speculation between April and June of possible electricity supply shortages. Overall storage improved in July 2008; however, South Island storage levels were still low in late July.
- Internationally, climate change has remained of high interest:
- The Intergovernmental Panel on Climate Change (IPCC) released the final part of its Fourth Assessment Report on Climate Change in November 2007. It noted:
Mitigation efforts, and investments, over the next two to three decades will have a large impact on opportunities to achieve lower stabilisation levels. Delayed emission reductions significantly constrain the opportunities to achieve lower stabilisation levels and increase the risk of more severe climate change impacts.3
- Australia ratified the Kyoto Protocol (in December 2007) and released its green paper on the design of an emissions trading scheme.
- Kyoto Protocol countries commenced negotiations on arrangements to reduce greenhouse gas emissions for the post-2012 period.
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