OPEC from myth to reality.

Following the 1972 U.N. Conference on Human Environment, the U.N. Environment Programme was established "[t]o provide leadership and encourage partnership in caring for the environment by inspiring, informing, and enabling nations and peoples to improve their quality of life without compromising that of future generations." (202) This environmental conscience initiative led to the approval of the United Nations Framework Convention on Climate Change on May 9, 1992. (203) The Convention acknowledged that the earth's climate is a common concern of mankind, expressed its alarm for greenhouse gas concentration and greenhouse effects and tried to reconcile development and sovereignty to exploit a country's resources with environmental protection recognizing the need for immediate action. (204) The Convention's objective is to stabilize greenhouse gas concentrations in the atmosphere and still enable economic development in a sustainable manner. (205) Parties to the Convention agree to promote a "supportive and open international economic system that would lead to a sustainable economic growth and development." (206) The European Economic Community approved the Convention on December 21, 1993. The parties to the Convention, with the sole exception of the United States and Australia, executed the Kyoto Protocol (207) on December 11, 1997 with specific targets to reduce or limit their emissions of greenhouse gases and agreed to not exceed their assigned carbon dioxide emissions. (208)

There is no doubt that the main energy consumers are committed to diversifying their energy sources and improving energy efficiency, allocating important resources to renewable energy. (209) It is also clear that very high energy prices stimulate energy efficiency and contribute to the reduction of carbon emissions, while also affecting nations with lower incomes. (210)

China's increased energy demand and high coal dependency with high levels of atmospheric pollution creates multiple environmental challenges. (211) Today it is clear that an agreement involving the United States, Europe, China, and India would be necessary to effectively reduce global warming trends. (212)

The passage to a new energy era has been called by some the "Environmental Revolution" as man's need to come to peace with nature by transforming its energy needs, consumption and energy sources. (213)

In a similar fashion as the United Nations has recently favored international interventions to enforce gross human rights violations, a specialized supranational energy organization should play a role when oil and gas exploration and development takes place in areas of special environmental interest for all mankind. (214) The planet's environmental well being should supersede selfish national interests when the potential harm to the environment is greater than the benefits of exploiting and developing nonrenewable resources. To date there is no international organization that may effectively review these issues, and most importantly, play a role in protecting the world's environment. (215) OPEC's oil and gas expertise and its mandate to protect the collective interests of its members place it in a privileged position to make a contribution in these fields.

Paradoxically, OPEC's quota system and price control mechanisms are an effective control of hydrocarbon production, which has been one of the objectives of environmental groups. (216) Thus, OPEC's very own mandate could enable it to effectively play an environmental protection role.

3. International Integration Models Such as the European Union Experience

Ensuring the "uninterrupted physical availability of energy products on the market" is essential to the European Union's long term energy supply security. (217) At the same time the European Union recognized that despite its importance, there has not been a "real debate on the choice of energy sources [nor] on energy policy regarding security of supply." (218) Europe's 2000 Green Paper asked whether the Union could "afford to ignore [its] dependence of more than 40% on oil imported from OPEC countries?" (219) Europe's integration model offers an example of successful international union based on the integration of key energy industries. (220)

Since 1951, Europe's coal and steel industries were integrated into the European Coal and Steel Community (ECSC). (221) The ECSC reflected both an economic and political decision because, as it is the case with oil for OPEC members, the coal and steel industries were essential for ECSC member countries. (222) French foreign minister Robert Schuman referred to the "pooling of coal and steel production [to set up] common foundations for economic development." (223) The objectives sought by the European countries could well apply today to the OPEC

members: "to strengthen ... solidarity, banish the spectre of war and open the way to ... integration." (224) A supranational entity, the "high authority," with binding powers was established to adopt all decisions regarding the coal and steel industry for the member countries, (225) which led to the formation of the European Atomic Energy Community and European Economic Community in 1957. (226) On February 7, 1992 at Maastricht the relationship between members was broadened to include issues such as defense, energy and the environment and the European Union was established. (227) Some of the objectives sought through the ECSC could well apply to OPEC today:

* securing in the shortest possible time the modernization of production and improvement of its quality;

* the supply of coal and steel on identical terms to the French and German markets, ... [and access to the sources of production and production forecasts to be made by the highest authority];

* the development in common of exports to other countries;

* the equalization and improvement of living conditions of workers in these industries. (228)

On January 1, 2004 the European Union was amended to include a total of twenty-five countries. (229) On March 10, 2001, with the adhesion of new members the Treaty of Nice was entered into and on December 16, 2004 the treaty establishing the Constitution of Europe (230) was executed. The members of the European Union agreed constitutionally to maintain price stability and achieve close economic policy coordination between them. (231)

The European Union specifically agreed to establish trans-European networks particularly in the area of energy infrastructure. (232) Europe's Constitution specifically provides a mandate to "ensure security of energy supply" and to promote energy saving and efficiency. (233) The European Constitution provides that European framework laws shall establish an environmental policy and "choice[s] between different energy sources and the general structure of its energy supply." (234) Interestingly, the European Constitution confirms the principle of sovereignty to exploit a country's energy resources by providing that although European laws on energy may be established they shall respect each "Member State's right to determine the conditions for exploiting its energy resources, its choices between different energy sources and the general structure of its energy supply." (235)

On December 17, 1991, members of the European Community approved the European Energy Charter to promote long term energy cooperation. (236) Europe tried to get Russia to join the Energy Charter without success. (237)

Europe represents the most successful example of integration based on an energy integration initiative. OPEC may provide important assistance to its member countries toward cooperation and integration founded on common energy interests.

4. Transparency and the Fight Against Corruption

Every western international world leader refers to the importance of promoting transparent energy markets. The market is perceived as the most efficient way of allocating resources, as long as such market follows clear, enforceable rules. The fight against corruption is a critical component to achieve transparency. (238)

An international voluntary initiative known as the "Global Compact" was presented by Kofi Annan on January 31, 1999, to promote corporate responsibility. (239) The Global Compact is described as a network that brings together U.N. agencies, private sector such as civil society, and labor and governments toward a sustainable world economy. The Global Compact promotes values-based markets through "responsible global corporate citizenship." (240) Through this initiative, participating companies (241) agree to abide by ten principles which include: support and protection of international human rights; not being complicit with human rights abuses; uphold the freedom of association and the right to collective bargaining; elimination of all forms of forced labor; effective abolition of child labor; elimination of discrimination in employment; support a precautionary approach to environmental challenges (which includes the notion of paying for ecological debts); promote environmental responsibilities; and environmental friendly technologies; and work against all forms of corruption. (242)

On December 17, 1997, Organization for Economic Co-Operation and Developmen (OECD) member countries and five nonOECD members executed the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. (243) The Convention entered into force on February 15, 1999. (244)