OPEC supports sound environmental policies that are fair and equitable, based on proven needs and designed to address those needs.

OPEC is concerned about the environment and we want to ensure that it is clean and healthy for future generations.

OPEC also supports sustainable economic development, which requires steady supplies of energy at reasonable prices. Many countries have already introduced heavy taxes on oil products. In some countries, the price that motorists pay for gasoline is three or four times higher than the price of the original crude oil. Taxes account for up to 70 per cent of the final price of oil products in some countries.

As a result of these taxes, some of the oil-consuming countries (especially those in Europe where taxation levels are highest) receive much more income from oil than OPEC does.

OPEC is concerned that many of the so-called 'green' taxes that are currently levied on oil do not specifically help the environment. Instead, they simply go into government budgets to be spent on other things. Taxes might lead to instability in the oil industry, creating problems for many countries and industries.

Industrialised countries are developing policies to limit the use of fossil fuels in order to reduce their emissions of carbon dioxide. Many are already levying heavy taxes, particularly on oil products. Yet studies have shown that OECD members could cut their carbon dioxide emissions by 12 per cent by 2010 and still maintain their tax revenues, if they adopted a pro rata tax system that levies tax on all forms of energy according to their carbon content.

OPEC is concerned that some countries may impose environmental and taxation policies that are harmful to those who rely on fossil fuels for a substantial part of their income.

Some countries with high oil taxes actually subsidise domestic coal production, yet coal produces more carbon dioxide than oil. Carbon dioxide is one of the greenhouse gases which are believed to contribute to global warming.

OPEC is worried about discriminatory oil taxes because we are committed to providing a stable petroleum market.

We need to invest in oil exploration and development in order to have production capacity available as demand rises in the years ahead, but we also need to be sure that there will be enough demand for that oil and that we will get a reasonable price.

If we do not invest in expanding oil production capacity before it is needed, the world could face sudden price shocks, leading to serious global economic problems.

OPEC is also concerned that many of the environmental policies now being proposed and adopted do not have the full support of the scientific community. There is still considerable debate about the impact of global warming, and how it can best be addressed. OPEC supports further research into these important issues.

OPEC is also spending heavily to improve its environmental impact, by locating sources of higher quality oil and gas, by developing cleaner fuels for consumers, and by reducing the impact of its activities through safer, cleaner drilling, transportation and refining processes.

OPEC also participates in many international meetings in order to remind governments and others who are debating environmental policies that they must consider the needs of developing countries, especially those that rely on their income from oil.