APEC Business Summit

Some people are good, and some people are lucky. The rest of the group assures me that I am only the later, and on Friday, they may have been right. I had the good fortune of being randomly selected to attend the APEC Business Summit at the Sydney Opera House. My group was ushered through layer after layer of security, past the 10 foot tall chain-link fence erected around the central business district, past the watchful eyes of police and soldiers, and into the historic opera house.

Stephen Harper spoke in English and French about Canada’s efforts to combat global warning. The Prime Minister emphasized the need to strike a balance between environmental stewardship and economic growth. He laid out some concrete targets for emissions reductions within Canada over the next three years and expressed support for the 50% world emission reduction proposed by Japan for 2050. Prime Minister Harper was extremely impressive.

The panel that followed offered a less optimistic view. The panelists including the CEOs of CNOOC and Chevron agreed: coal is king (it’s the cheapest and most abundant energy source available) and it is here to stay (large reserves in China and the U.S. are one reason why coal consumption is expected to double by 2050). I was slightly disheartened to hear the chairman of BHP Billion largely discount alternative energy sources as too costly to interest the market. The discussion focused on the need for technology to enable the cleaner burning of coal. Another surprising bit of information offered: deforestation in Brazil and Indonesia will account for 15 – 20% of global emissions over the next several years.

A second panel which included the Treasurer of Australia, Peter Costello, discussed the state of the regional economy ten years on from the Asian financial crisis. All concurred that another meltdown was unlikely; however, they want to see reform in China and the IMF and World Bank. The discourse was a bit heady to say the least. A former head of the IMF traded observations with the current head of the Asian Development Bank on foreign exchange reserves, capital flows, and the American sub-prime mortgage market. I soaked up what I could and wrote down the rest.

President Garcia of Peru closed the session by offering a vision for next year’s APEC meeting in Lima. He promised that issues important to developing economies will be front and center.

We almost had more trouble getting out of the secured zone than we did getting in. Did I mention the security was overkill? Nevertheless, it was an incredible opportunity.

Pete