By Luis Córdova and Andrés Cańizález
CARACAS, Sep 28 (IPS) - The final declaration of the OPEC summit
signed Thursday in the Venezuelan capital goes beyond the
international petroleum market to express concern about climate
change and the situation of impoverished nations.
The document closes the second-ever Organisation of Petroleum
Exporting Countries (OPEC) summit in the oil cartel's 40-year
history, formalising the commitment of its 11 member nations
''to seek new and effective channels of dialogue between oil
producers and consumers, for the purpose of market stability,
transparency and sustainable growth of the world economy.''
But the delegations to the meeting, held in the midst of
international pressures against high crude prices, also
concentrated on issues outside the oil trade, demonstrating
unease about environmental and development matters.
''The biggest environmental tragedy facing the globe is human
poverty,'' says OPEC, stressing that it is a reality all
industrialised nations must confront.
The final document, known as the Caracas Declaration, expresses
OPEC's worries about the consequences of the Kyoto Protocol, a
United Nations convention that establishes guidelines for
reducing fossil fuel consumption.
''It is a problem for everyone, not just producing countries',''
said the summit's host, President Hugo Chávez, in his comments on
the Caracas Declaration.
The Protocol was designed to fight global warming resulting from
the greenhouse effect, which scientists say is caused by the
emission of gases from burning fossil fuels, such as coal and
petroleum.
In the summit's final document, OPEC invokes ''the principle of
common but differentiated responsibility,'' a clear reference to
the need for emphasising environmental measures for those
countries that produce the most greenhouse gases as a result of
their high fossil fuel consumption.
The declaration explicitly calls for ''implementing policies and
measures to minimise the adverse social and economic impacts of
(the Protocol's) response measures on the countries whose
economies are highly dependent on the production and export of
fossil fuels.
The text also recommends ''the use of both oil and gas in
circumstances where they can be substituted for other fuels which
are recognised as being damaging to the global environment,''
such as coal.
The Kyoto Protocol was negotiated as part of the UN Framework
Convention on Climate Change and involves some 160 countries,
though only 20 nations have ratified the agreement.
The Protocol's principal goal is to reduce greenhouse gas
emissions, based on 1990 levels, by five percent between 2008 and
2012. This would imply a sharp reduction in the rising demands
for petroleum forecast for the coming decade.
The restrictions on oil consumption would cause a drop in demand
of 6.5 million barrels per day, and could cost the OPEC nations a
combined 23 billion dollars in export losses, according to
the organisation's General Secretariat.
Nigeria's President Olusegun Obasanjo said the losses could reach
60 billion dollars by 2030 and urged OPEC to stand firm and
united in the discussions of the Protocol, which are to be
renewed in November at The Hague.
Obasanjo stressed that climate change affects everyone, and that
there should be no doubt that the OPEC members are as concerned
as the rest of the world. Other presidents at the summit
also emphasised that despite their concern about the economic
effects of the Kyoto Protocol, OPEC wants to co-operate in
preserving the world's environment.
In informal statements, OPEC members have suggested reducing the
restrictions on petroleum while increasing limitations on coal,
which they consider a more pernicious polluter. Coal mining
continues to be subsidised in numerous countries.
The leaders have also stressed the importance of creating
conditions so that oil-dependent economies can diversify their
sources of revenue.
Concerning development, OPEC said in its declaration signed
Thursday that the eradication of poverty must be a global
priority, and calls on the nations of the industrialised North to
take part in related efforts.
The text also notes, ''with concern, that the debt levels of many
developing countries have become unsustainable.''
The oil cartel announced that it would continue its efforts to
fight the social effects of poverty by maintaining the OPEC Fund
for International Development, which has provided 5.6 billion
dollars in resources since its creation in 1976.
However, no mention was made of expanding OPEC aid for developing
countries or for international organisations supporting poor
communities, as Venezuela's president Chávez had proposed.
Chávez, who also proposed establishing an OPEC-based bank,
mentioned several times during the summit the need to combat
inequalities in the world. ''OPEC is an institution that fights
for justice,'' he stated.
The Caracas Declaration's formal call for dialogue with oil
consuming nations of the industrialised North is in part an
attempt to place responsibility for the currently high crude
prices.
The cartel says prices are not determined only by supply and
demand, but also result from speculation on the oil market,
bottlenecks in refining and transportation, and from the high
taxes governments charge consumers.
An ''excellent opportunity'' for this unprecedented dialogue,
according to OPEC leaders, will be the 7th International Energy
Forum to be held in mid-November in Riyadh.
Chávez said in the summit's closing speech that petroleum
exporters are open ''to dialogue at all possible levels, whether
technical, ministerial or among heads of state.''
The 11 OPEC members - Saudi Arabia, Algeria, United Arab
Emirates, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar
and Venezuela - are enjoying renewed influence over the oil
market since the quotas and cutbacks it adopted in March 1999
successfully drove up bottomed-out prices.
Crude prices are currently at about 30 dollars a barrel,
following the OPEC decision to put an additional 800,000 barrels
on the world market daily and the United States' announcement
that it would release 30 million barrels from its strategic
reserves.
Iran's President Mohammad Jatami summed up the Caracas meeting
stressing that it is through dialogue that producers and
consumers can confront issues related to market access and
ensure the uninterrupted flow of oil, acceptable petroleum prices
and the prevention of discriminatory and protectionist policies.
(END/IPS/tra-so/lc-ac/mj/ld/00)
SOURCE: Inter Press Service (IPS)
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