I have been keeping a close eye on the news around the global credit crunch and associated market volatility and am alarmed at what the papers are telling me.
Am I to believe that the global economy is on a cliff edge and about to plunge us into a global recession not seen since the great depression? Is there hope that the US legislators can provide a solution? I certainly hope so, and as Mr Paulson, US Treasury Secretary, says this issue is “much too important to simply let fail”
The other issue that has caught my attention relates to climate change. Prof Garnaut says globally we must reduce carbon emissions by 25 per cent by 2020 although seems sceptical of the international community’s ability to pull this off.
The amateur economist in me suggests there is a direct relationship between finding solutions for our financial crisis and our ability to mitigate carbon emissions. On the one hand, the potential costs associated with the global meltdown, combined with lower economic activity in 2009, will put significant pressure on our ability to absorb the the economic costs of the proposed Emissions Trading Scheme. Just how can these be balanced? As Prof Garnaut says, “Financial crises are short term phenomena… Climate change is a long-term structural issue”
On the other hand, perhaps this is the golden opportunity for climate change issues to be embraced as an economic downturn should reduce the demand for oil and it’s price, giving some breathing space for economic recovery.
I think that doing nothing in both issues will result in even greater economic costs which we simply cannot ignore. My proposition is that we accountants should be in control – would it have happened under our watch? We can Think + Create the right solutions!
I am looking forward to CPA Congress for guidance and answers. There are several speakers speaking on these issues which for me should bring this into perspective. In particular:
Mark Vitner, Managing Director and Senior Economist, Wachovia Corporation (US)
Riding the tide of a US economic downturn – what impact will it have here?
Monday 13 October 9.00am – 9.50am
Bob Carr, Former Premier of NSW
NSW 2020 – can we sustain our growth?
Wednesday 15 October 8.30am – 9.20am
Ernst Ligteringen, Chief Executive, Global Reporting Initiative
Beyond the numbers – the value, challenge and future of non-financial reporting
Wednesday 15 October 5.30pm – 6.30pm
Brett Janissen, Executive Manager, Asia-Pacific Emissions trading Forum
Exploring the impact of emissions trading on the Australian economy
Monday 13 October 2.00pm – 3.00pm
I look forward to seeing you at Congress! Let me have your take on the current turmoil and the days ahead.
Ron Switzer FCPA
Director NSW Division
Posted by cpacongress 
