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Making International

Environmental Efforts Work:

The Case for a Global

Environmental Organization

BYDAIE!C" E#TYADMA$IA%" I&AO&A

Yale Center for Environmental Law and Policy

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Daniel C" Est2is a professor of environmental law and policy at the Yale Law School

and the Yale School of Forestry & Environmental Studies. He is also Director of theYale Center for Environmental Law and olicy and !ssociate Dean of the Yale School ofForestry & Environmental Studies "http#$$www.yale.edu$environment%.Email# daniel.esty'yale.edu

Maria %" Ivanovais the Director of the (lo)al Environmental (overnance ro*ect"http#$$www.yale.edu$+e+dialo+ue% and doctoral candidate at the Yale School of Forestry& Environmental Studies. Email# maria.ivanova'yale.edu

Esta)lished in 1,,- the Yale Center for Environmental !a3 an4 'oli52draws onresources throu+hout Yale /niversity to develop and advance environmental policylocally re+ionally nationally and +lo)ally. 0ne core +oal is to develop and advancepolicies respondin+ to critical environmental pro)lems and to provide a forum in whichscholars environmental advocates )usiness people officials and representatives ofinternational or+aniations can e2chan+e views.

3441 Yale Center for Environmental Law and olicy541 rospect Street6ew Haven C7 48911/nited States

"345% :;: 1-1-"345% -53 5;1:http#$ $www.yale.edu$envirocenter

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TAB!EO(COTET#

1" IT$OD)CTIO""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""6

/" $ATIOA!E (O$ A G!OBA! E&I$OMETA! O$GAI7ATIO"""""""""""8

3.1 7HEE606?E67!L>0@LE?S0F7HE31S7CE67/>Y........................................93.3 7HE(L0@!LE606?E67!L(06!6CESYS7E?..........................................8

2.2.1. Failed Collective Action....................................................................................6

2.2.2 Fragmentation....................................................................................................8

2.2.3 Deficient At!ority.............................................................................................8

2.2." #n$fficient Legitimacy.......................................................................................%2.2.& Fiddling or fi'ing..............................................................................................1(

9" ()CTIO# AD (EAT)$E# O( A GEO""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""10

5.1 DEC=S=06?!A=6(...................................................................................................115.3 =?LE?E67!7=06.....................................................................................................135.5 ?06=70>=6( ...........................................................................................................135.- C06FL=C7>ES0L/7=06............................................................................................135.9 FE!7/>ES0F! (E0...............................................................................................15

6" W%AT# I A AME;"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""19

8" O$GAI7ATIOA! DE#IG """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""16

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8.1 =?>07HEE606?E67........................................1;8.9 =?>06ESS................................................................................................1;

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Making International Environmental Efforts Work:

The Case for a Global Environmental Organization

BYDAIE!C" E#TYADMA$IA%" I&AO&A

1" Intro4>5tion

oor performance in response to mountin+ +lo)al scale pollution and natural resourcemana+ement challen+es has spurred interest in rethinBin+ +lo)al environmental+overnance and perhaps restructurin+ the current institutional architecture. @oth formerSoviet /nion resident ?iBhail (or)achev and French resident acues Chirac have

ur+ed the esta)lishment of a (lo)al Environmental 0r+aniation.1 hile more modestreform a+endas )uildin+ on the status uo mi+ht also )e considered the nature of theenvironmental pro)lems at the +lo)al level and the inherent shortcomin+s of the e2istin+structure ar+ue stron+ly for a )roader reconfi+uration of the international environmentalre+ime.

Si+nificant natural resources from the ocean )ed to the atmosphere are shared re+ionallyor +lo)ally. Yet despite the multitude of treaties conventions and a+encies the current+lo)al environmental mana+ement system has failed to address and solve pro)lemsrelated to trans)oundary pollution spillovers and shared resources. ! revitalied andstren+thened policy mechanism and structure is needed to respond to the scale andcomple2ity of the pro)lems and to the chan+in+ conte2t within which they have to )etacBled. 7o this end options for a new fle2i)le and innovative approach to addressin++lo)al environmental pro)lems need to )e developed. 7he world community would)enefit from the presence of an authoritative environmental voice in the internationalarena and a reco+nied forum for national officials and other staBeholders to worBcooperatively to address +lo)al issues.

=n this paper we advance the case for a (lo)al Environmental 0r+aniation "(E0%. 0urproposal for a (E0 )uilds on a careful analysis of the pro)lems that must )e addressed

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7he !merican and >ussian eople DonGt ant a 6ew Confrontation)ew$wee* !pril 3: 3441 full te2tavaila)le athttp#$$www.msn)c.com$news$989889.aspI@0DYJacues Chirac sGempare de lGecolo+ieLe

+onde 9 ?ay 3441 p.8 te2t availa)le athttp#$$www.lemonde.fr. Similar su++estions have also come fromFrench rime ?inister Lionel ospin former orld 7rade 0r+aniation director +eneral >enato >u++iero@ritainGs Sir Leon @rittan a +rowin+ num)er of )usiness leaders "especially those with +lo)al operations%and even ,!e Economi$tma+aine. !n increasin+ volume of literature has )e+un to accumulate. For therationale of a +lo)al environmental )ody see @iermann and Simonis 1,,;J @iermann 3444 3441J Esty1,,- 3444 3444aJ 6ewell 3441J halley and Kissimos 3441. For a critiue of the concept of a (lo)alEnvironmental 0r+aniation see uma 3444 3444a von ?oltBe 3441. 7he inau+ural issue of (lo)alEnvironmental olitics *ournal "3441% is lar+ely dedicated to the +lo)al environmental +overnance de)ate.

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internationally and the Bey capacities that an international environmental )ody shouldpossess. e outline a possi)le or+aniational structure sBetch out an implementationstrate+y and address some of the ar+uments liBely to )e raised a+ainst creatin+ a (E0.

/" $ationale for a Global Environmental Organization

/"1 The Environmental 'roblems of the /1stCent>r2

From thinnin+ of the oone layer to depleted fisheries to the possi)ility of climatechan+e the world community faces today a num)er of inherently +lo)al challen+es.!dvances in a ran+e of ecolo+ical sciences continue to unveil new threats to the +lo)alcommons that deserve attention from air)orne mercury to disrupted hydrolo+icalsystems as well as new interrelationships amon+ issues such as the impact of e2cess

nitro+en from fertiliers or vehicle emissions on terrestrial and marine ecosystems.3

Ecolo+ical interdependence is a fact.5 7he only uestion is whether we will mana+e itthou+htfully e2plicitly and effectively or on an unsystematic and ad hoc )asis.

Clearly some environmental pro)lems are of limited +eo+raphic scope and can )ehandled at the national scale. @ut +overnments around the world are )e+innin+ toreco+nie their ina)ility to address the many environmental pro)lems with internationalimplications on their own. 7hus stron+er national state$re+ional and localenvironmental performance is necessary )ut cannot su)stitute for appropriate action atthe +lo)al scale.

!nd the pro)lem is not *ust environmental. @asic economics teaches that unre+ulated

shared resources are at risB of overe2ploitation. Fish stocBs for instance can )e rundown uicBly if every fisherman tries to catch as many fish as possi)le as uicBly aspossi)le. Similarly trans)oundary spillovers of pollution "such as S03emissions driftin+

3>= 1,,;1,,,.5!s emphasied )y /6 Secretary(eneral Aofi !nnan 6o crisis in history has so clearly demonstratedthe interdependence of nations as the environmental crisis. /6E 3444.

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downwind and causin+ acid rain or contamination of shared rivers such as the Danu)e%cannot )e adeuately addressed at the national scale. =f not controlled suchuninternalied e2ternalities-lead to marBet failures and result in allocativeinefficiency in the economic realm reduced +ains from trade and lost social welfare notto mention environmental de+radation.

!s the lon+standin+ literature on pu)lic +oods maBes clear9collective action toaddress e2ternalities must )e at the scale on which the harms arise. 7hus some sort offunctionin+ +lo)al environmental re+ime )ecomes an economic as well as an ecolo+icalnecessity. @ecause environmental pro)lems are diverse and arise at different scales a+overnance structure must similarly )e multitier in structure. hat is therefore neededis a nestin+ of institutions8 a frameworB of local re+ional national and internationalpolicy mechanisms for a comprehensive effective and inte+rated approach toenvironmental +overnance.

/"/ The Global Environmental Governan5e #2stem

=t is now widely acBnowled+ed that the current international environmental re+ime isperformin+ poorly.: From haltin+ efforts to understand and confront the prospect ofclimate chan+e to pressin+ issues of food safety dissatisfaction amon+ politicians)usiness people environmentalists and the +eneral pu)lic a)ounds. Some of the failin+scan )e attri)uted to a history of mana+ement shortcomin+s and )ureaucraticentan+lements )ut other aspects of the pro)lem are deeper and more structural. Fourma*or issues deserve particular focus#

2.2.1. Failed Collective Action

Environmental re+ulation at the +lo)al level reuires an e2traordinary de+ree of

cooperation amon+ nations. =n academic lin+o it presents a difficult collective actionpro)lem.; @ecause international environmental pro)lems are diffuse spread acrossspace and time incentives arise to i+nore trans)oundary emissions and ne+lect themana+ement of shared resources. LiBewise the concentration of a)atement costs ")ornefully within the country undertaBin+ pollution control pro+rams% and the diffusion of the

-7he concept of an e2ternality was first ela)orated )y !rthur i+ou in 1,13 when he analyed how afactory would produce more than the optimal amount of smoBe )ecause of a diver+ence )etween privateand social costs. i+ou e2panded on this discussion in his 7he Economics of elfare "M1,34N1,83%.>onald Coase "1,84% enriched and corrected the i+ouvian frameworB )y pointin+ out that in a world ofwelldefined property ri+hts and ero transaction costs e2chan+e will eliminate e2ternalities and ensure thatresources are allocated to their hi+hest valued use.9

See ?ancur 0lson 7he Lo+ic of Collective !ction "1,89%.8See H!7 3444.:See /6E 3441J French 3444J Hempel 1,,8.;! collective action pro)lem occurs when rational individual action )y each of the mem)ers of a +roupwould lead to a su)optimal collective outcome. 7he most nota)le e2amples are in natural resource or+lo)al commons use where ma2imiin+ individual utility leads to a depletion and ultimate ruin of theresource. See for e2ample Hardin 1,8; citin+ the case of a common pasture where addin+ more cattle is arational individual decision )ut results in the destruction of the shared natural resource and ultimately tone+ative economic conseuences. 7he seminal worB in collective action theory is ?ancur 0lsonGs 7heLo+ic of Collective !ction# pu)lic +oods and the theory of +roups 1,:1.

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)enefits "spread across the world% maBes freeridin+ on the efforts of others attractive.Ouite simply the spatial scale and temporal diffusion of international environmentalissues maBes the impacts of e2ternalied harms hard to see and thus the )enefits ofcooperation less than o)vious. !s a fundamental matter unless countries perceivepro)lems as real and thus reco+nie the advanta+es of colla)oration the transaction costs

of or+aniin+ and sustainin+ international cooperation )ecome overwhelmin+.7he fra+mentation +aps in issue covera+e and even contradictions amon+ differenttreaties or+aniations and a+encies with environmental responsi)ilities maBeinternational environmental policy coherence hard to achieve. ! pervasive lacB of datainformation and very limited policy transparency adds to the challen+e maBin+ evena+reement on the scope of pro)lems hard to +et. 7his o)scurity and confusion hei+htensthe allure of lettin+ others carry the environmental )urden. @ut of course wheneveryone chooses to stand on the sidelines no action is taBen.

ith limited e2ceptions "e.+. oone layer protection% the +lo)al environmental scene inthe last decade has involved too much watchin+ and talBin+ and too little effective action.0n most issues the results from the international environmental re+ime have fallen shortof )oth e2pectations and needs. =nternational coordination issue identification policyanalysis pro)lem solvin+ and capacity )uildin+ have )een inadeuate in many areasincludin+ climate chan+e fisheries mana+ement trade and environment )iodiversityand desertification.,

7he pattern of su)optimal policy outcomes can )e traced to many sources# limitedhuman and financial resources )ureaucratic inefficiencies inadeuate scientificunderpinnin+s and a lacB of commitment to analytic ri+or in a num)er of international)odies. @ut the core pro)lem is at least in part structural. 0ther +lo)al challen+esPinternational economic mana+ement population control and various world healthpro)lems "e.+. eradication of polio and small po2% have )een addressed more

successfully. =n the international environmental domain success has )een achieved in asmall num)er of cases where case specific institutional mechanisms sufficient to aparticular pro)lem emer+ed the costs of the status uo and the )enefits of action wererealied and political entrepreneurship was harnessed to develop effective efficient andinnovative policy solutions.14@ut the list of successes is short.

=n )rief institutions matter. 7he international environmental architecture has provenitself incapa)le of livin+ up to the challen+es it faces. Chan+e is reuired to )etterfacilitate cooperation in response to +lo)al issues.

,7hese weaBnesses are reco+nied )y /6E in the ?almQ ?inisterial Declaration adopted in ?ay 3444notin+ that there is an increasin+ rate of deterioration of the environment and the natural resource )aseMandN an alarmin+ discrepancy )etween commitments and action. Full te2t availa)le athttp#$$www.unep.or+147he most nota)le +lo)al e2ample is the re+ime for protection of the oone layer. 7here are manyre+ional e2amples of successful cooperation especially within the scope of re+ional seas conventions. Foran e2tensive discussion of the various ?ultilateral Environmental !+reements see /6E 3441a?ultilateral Environmental !+reements# ! Summary >eport of the E2ecutive Director"/6E$=(?$1$=6F$1%. Full te2t availa)le at http#$$www.unep.or+$ie+

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2.2.2 Fragmentation

=nternational environmental responsi)ilities are spread across too many institutions withdiffuse overlappin+ and even conflictin+ mandates.11 7hus the /nited 6ationsEnvironment ro+ramme "/6E% competes for time attention and resources with morethan a doen other /6 )odies "such as the Commission for Sustaina)le Development

"CSD% the orld ?eteorolo+ical 0r+aniation "?0% the =nternational 0ceano+raphicCommission "=0C% the /6 Educational Scientific and Cultural 0r+aniation"/6ESC0% and others% with environmental responsi)ilities and interests. /6E /6D?0 as well as the 0r+aniation for Economic Cooperation and Development "0ECD%and the orld @anB for e2ample all have climate chan+e pro+rams underway with littlecoordination and no sense of strate+ic division of la)or. =n a similar vein the orldHumanity !ction 7rust Commission on ater has identified more than twenty )odiesand specialied a+encies within the /6 system with water pro+rams.13

!ddin+ to this fra+mentation are the independent secretariats to numerous treatiesincludin+ the ?ontreal rotocol "oone layer protection% the @asel Convention

"haardous waste trade% the Convention on =nternational 7rade in Endan+ered Species"C=7ES% the Climate Chan+e Convention and many others. =n fact there are now over944 multilateral environmental treaties and 84 per cent of them have come into e2istencesince the StocBholm Conference in 1,:3.15 ?any of these a+reements are limited inscope alon+ issue and +eo+raphic areas. !s pointed out in the report of /6EGsE2ecutive Director on ?ultilateral Environmental !+reements MfNrom a com)ined+lo)al and re+ional perspective the resultant proliferation of ?E!s has placed anincreasin+ )urden on arties and mem)er states to meet their collective o)li+ations andresponsi)ilities to implement environmental conventions and related internationala+reements.1- hen similar treaty con+estion threatened to )reaB down internationalefforts to re+ulate intellectual property a sin+le )ody the orld =ntellectual roperty

0r+aniation was launched to consolidate +lo)al scale efforts and achieve scaleeconomies in mana+ement. 7he environmental re+ime faces a similar pressin+ need forstreamlinin+ and coherence.

2.2.3 Deficient At!ority

7he e2istin+ international environmental institutions especially /6E are hampered )ynarrow or va+ue mandates small )ud+ets and limited political support. 6o oneor+aniation has the political authority vitality e2pertise and profile to serve as thecenter of +ravity for the international environmental re+ime and to e2ert sustainedpolitical influence in other +lo)al fora.

7he contrast with other international re+imes is striBin+. /6E set up as a pro+ramrather than as an autonomous a+ency lacBs the necessary le+al authority )ud+et and

11For a discussion of the fra+mentation pro)lem )y /6E see /6E 3441 =nternational Environmental(overnance# >eport of the E2ecutive Director "/6E$=(?$1$3%. Full te2t availa)le athttp#$$www.unep.or+$ie+13H!7 3444 at 34.15/6E 3441a at 3.1-=)id. at 5.

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staff to mana+e "or even coordinate% +lo)al environmental policymaBin+.19 ?orecritically it has failed to attract and retain a firstrate staff. 7hese weaBnesses translateinto poor performance and mean that the /6E analyses and recommendations often donot carry much clout. ! reputation for authoritativeness mi+ht alternatively have )eenesta)lished if /6E had positioned itself as a +lo)al pu)lic policy networB18pullin+ in

e2pertise from around the world. @ut this model was not developed either.ith an annual )ud+et of R84 million1:/6E limps from one fiscal crisis to the ne2t.7he fundin+ mechanism of voluntary contri)utions as opposed to assessedcontri)utions leaves the or+aniation vulnera)le to the demands donors attach tofinancin+. !nd the limited resources availa)le have often )een spread too thin. hile setup as a mechanism for tacBlin+ +lo)al environmental issues /6E has )een pushed totaBe on pro*ect responsi)ilities that it has neither the )ud+et nor the structure to mana+e.Furthermore political insta)ility serious personal safety issues and a lacB of a moderncommunications infrastructure in 6airo)i have hampered pro+ress.

7he international environmental re+ime has thus )ecome mired in a cycle of decline./6EGs structural handicaps have led to its output )ein+ *ud+ed as modest and not veryuseful. 7his weaB performance results in reduced political support +reater difficulty inattractin+ hi+hly competent staff and continuous )ud+et pro)lems as donors looBelsewhere for ways to deploy their limited environmental resources. >esults furtherdeteriorate and the downward spiral accelerates.

2.2." #n$fficient Legitimacy

7he e2istin+ international environmental re+ime has failed to adeuately deal with thepriorities of )oth developed and developin+ countries. !s a result there is littlecommitment across the world community to the success of the +lo)al environmentalre+ime and little sense of the importance or le+itimacy lod+ed in the institutions thatmaBe up this re+ime. 7he Commission on Sustaina)le Development set up to addresseconomic social and environmental o)*ectives in an inte+rated manner has failed to+alvanie the world community in support of sustaina)le development. =t has not evensucceeded in clarifyin+ what the term means much less how it should )e translated into aconcrete action a+enda.1;

=nattention on the part of industrialied countries to the need for a concerted worldwideeffort to alleviate poverty has had si+nificant spillovers into other issue areas. =n manycountries there is a sense that the >io Earth Summit compact a simultaneous focus on

19For an e2tensive review and analysis of /6EGs role in +lo)al environmental +overnance and anassessment of past and present reform initiatives see Desai 3444. For an assessment of /6EGs stren+ths

and weaBnesses as re+ards +lo)al environmental +overnance see /6E 3441.18For an analysis and review of the (lo)al u)lic olicy 6etworBs concept see infra notes 3939 andaccompanyin+ te2t.1:R84 million constitutes the approved appropriations )y /6EGs (overnin+ Council for 3441J the actualcontri)utions are e2pected to amount to less than R94 million. For more information on trends in financin+from 1,,- to 3445 see Desai 3444 at -:-.1;7his pro)lem was articulated most recently )y 6itin Desai /nderSecretary(eneral for economic andsocial affairs at the or+aniational session of the Commission on Sustaina)le Development actin+ as areparatory Committee for the orld Summit on Sustaina)le Development !pril 54 ?ay 3 3441 6ewYorB.

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the development needs of poorer countries and the environmental +oals of wealthiernations has not )een Bept.1, 7he 6orthGs limited initiatives to help to )uildenvironmental capacities in developin+ countries throu+h financial and technolo+icaltransfers has added to the sense of disillusionment with the current +lo)al environmentalre+ime and its structures. hile the /nited States the E/ and apan re*ect the char+e

that they failed to follow throu+h on commitments made at >io the lacB of pro+ress onthe international environmental policy front is palpa)le.

7he inadeuacy and dispersion of the e2istin+ financial mechanisms scattered acrossthe (lo)al Environmental Facility /6 Development ro+ramme orld @anB andseparate funds such as the ?ontreal rotocol Finance ?echanism reinforces theperception of a lacB of seriousness in the 6orth a)out the pli+ht of the South.Furthermore fundamental principles of +ood +overnance such as representativenesstransparency and accounta)ility are still at issue in many of the institutions withenvironmental responsi)ilities. 7hese procedural shortcomin+s undermine the le+itimacyof the system as a whole.

Concerns arise not *ust from +overnments. 7he on+oin+ street protests )y a ran+e ofenvironmental non+overnmental or+aniations from ashin+ton to ra+ue a)out therole of the orld @anB and the =?F are em)lematic of )roader pu)lic dissatisfaction withhow environmental issues are )ein+ mana+ed at the +lo)al scale. 7hese protests can also)e seen as a si+nal of distress a)out the way +lo)aliation is unfoldin+ and a sense thatimportant values are )ein+ lost in the headlon+ rush for li)eralied trade and economic+rowth.

2.2.& Fiddling or fi'ing

! multipron+ a+enda of refinements and reform could )e developed to address thesemany issues. @ut the list of pro)lems is so lon+ and the )a++a+e associated with thecurrent re+ime is so heavy that at some point a fundamental restructurin+ rather thanincremental tinBerin+ )ecomes a )etter path forward. =n the face of so many difficultiesand the e2istin+ re+imeGs poor tracB record any presumption in favor of worBin+ with thestatus uo cannot )e sustained. ?oreover as the analysis a)ove su++ests the nu) of theissue is structural maBin+ a different startin+ point and a new institutional desi+nadvisa)le.

9" (>n5tions an4 (eat>res of a GEO

7he core function of a new (lo)al Environmental 0r+aniation should )e to fashion a

coherent and effective international response to +lo)alscale pollution control and naturalresource mana+ement issues. !t the national level systems e2ist to re+ulate )usiness

1,See the discussion paper )y the South !frican 6(0 Caucus on the orld Summit for Sustaina)leDevelopment 7owards the orld Summit on Sustaina)le Development pu)lished )y the Heinrich @QllFoundation orld Summit 3443 apers 6o.1. 6ice words no action. hile the Earth Summit in 1,,3+enerated a tremendous wave of enthusiasm for promotin+ sustaina)le development many non+overnmental or+aniations that have followed the pro+ress of +overnments and international )odiestowards meetin+ the tar+ets and recommendations which were set out in the >io pled+es have witnessedlittle pro+ress in some of the most critical areas at 8.

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harness marBet forces and ensure collective action in response to a ran+e ofenvironmental pro)lems. ith re+ard to the atmosphere oceans sea)ed and otherelements of the +lo)al "and re+ional% commons such structures do not e2ist or are notfunctionin+.34 Conceptually a (E0 fills an undenia)le need for a mechanism to promotecollective action at the international scale. ractically a new )ody offers the chance to

)uild a coherent and inte+rated environmental policymaBin+ and mana+ement frameworBthat addresses the challen+es of a shared +lo)al ecosystem.

! (E0 must of course accommodate the diverse needs of countries across the Earth and)e responsive to the concerns of the increasin+ num)er of actors or staBeholders")usiness entities environmental +roups and the )roader set of non+overnmentalor+aniations that maBe up civil society% )eyond national +overnments. !nd movementforward on the environmental front must )e paired with a real commitment to povertyalleviation and economic +rowth across the world so that the vision of sustaina)ledevelopment can )e achieved.

ith these needs in mind we see four core capacities as essential in a revitaliedinternational environmental re+ime# "1% decisionmaBin+ "3% implementation "5%monitorin+ and "-% dispute resolution.31 ! (E0 should also )e or+anied around +ood+overnance principles such as su)sidiarity inte+ration participation transparency andaccounta)ility.

9"1 De5ision-Making

Sound environmental decisionmaBin+ hin+es on the availa)ility of data information andanalysis. 7o ensure sensitivity to the diversity of circumstances and values that e2istsacross countries any new )ody must )e committed to open process and vi+orous de)ate.! (E0 should thus )e capa)le of e2ecutin+ the followin+ functions#

Scientific assessment includin+ environmental data collection and analysis. >elia)ledata of hi+h uality and compara)ility would support an inte+rated ecosystem)asedapproach to pro)lem definition and assessment. ! stron+ data foundation would alsopermit much more vi+orous initiatives to identify and disseminate information on )estpractices in the policy and technolo+y realms. Lon+term forecastin+ ofenvironmental trends early warnin+s of environmental risBs and inter+enerationalimpact assessments could )e devised on the )asis of such data.

Anowled+e networBin+ drawin+ on a wide ran+e of sources for information and datapro)lem identification impact analysis policy option development and pro+ramevaluations. (iven the inherent comple2ity and uncertainty of environmental

34See H!7 3444 distin+uishin+ )etween three levels of commonsP+lo)al commons "those outsidenational territorial limits such as the hi+h seas the atmosphere and !ntarctica%J re+ional commons"watersheds )asins and other ecosystems crossin+ national )orders and under the potential control andmana+ement of a +roup of states%J and national commons "local resources within the nation state and underthe control of national or su)national +overnments%. 7he interconnectedness amon+ these levels isreco+nied )ut the lacB of adeuate institutional mechanisms for +lo)al commons mana+ement is nota)le.317amiotti and Fin+er 3441 identify the first three functions fundamental to environmental or+aniations.e )elieve that conflict resolution is an important function for a (E0 that would facilitate collective actionand ensure effective and euita)le environmental solutions.

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policymaBin+ it is especially important that pro)lems )e approached from multipleperspectives so as to facilitate )road)ased a+reement on the )est route forward.

>ulemaBin+ startin+ with the esta)lishment of policy +uidelines and internationalnorms which mi+ht over time develop into more formal rules. @roader access todata information and Bnowled+e promotes consensus )uildin+ on the scope of

pro)lems and ultimately movement toward )roadly accepted norms. Layin+ theanalytic +roundworB for +uidelines identifyin+ ways to address pro)lems that reuirea common )ut differentiated response and conductin+ international ne+otiationsespecially with re+ard to trans)oundary e2ternalities and the mana+ement of sharedresources would )e critical functions.

9"/ Im?lementation

/ltimately the implementation of +lo)al environmental a+reements and compliance withinternational commitments )ecomes a matter of e2ecution at the national and local levels.@uildin+ environmental capacity within nationstates is thus of critical importance.

Comparative data and pu)lic disclosure of results represent critical tools in the push forinternational environmental pro+ress. Shared information allows )est practicestechnolo+ies and policies to )e identified hi+hli+htin+ the opportunities for la++ards tolearn from those at the leadin+ ed+e. Structured pro+rams of financial scientificmana+ement and technical assistance will also )e needed mo)iliin+ )oth pu)lic andprivate resources and e2pertise.

9"9 Monitoring

7he monitorin+ capacity of a (E0 should include the continuous and systematiccollection and evaluation of data on environmental performance and trends. Data and

information lies at the heart of +ood decisionmaBin+. !nd while compliance monitorin+should primarily )e the function of re+ional or national or+aniations a (E0 couldprovide a central repository for such information and a mechanism for maBin+ theinformation availa)le to concerned parties.

Development and systematic review of a core set of environmental indicators is central to+ood environmental decisionmaBin+. ! common set of crosscountry pollution controland natural resource metrics data on trendlines and a commitment to )enchmarBin+ atthe national re+ional local and corporate scales would enhance opportunities for policypro+ress. =n addition careful tracBin+ of trends could provide the foundation for an earlywarnin+ mechanism that would facilitate the timely forecastin+ and identification ofenvironmental disasters and areas at risB.

9"6 Confli5t $esol>tion

! (E0 needs procedures to promote conflict resolution includin+ convenin+ authorityand a+reed mechanisms for dispute settlement that draw on appropriate scientific andtechnical e2pertise. 7he structures developed need to taBe account of differences inlevels of development as well as cultural and values diversity to promote on+oin+cooperation and reconciliation.

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9"8 (eat>res of a GEO

7he Bey attri)utes of a (E0 should reflect the principles of +ood +overnance includin+su)sidiarity an inte+rated approach to policymaBin+ )road)ased participationtransparency and accounta)ility. =t is now widely reco+nied that under the

environmental ru)ric fall a )road)ased set of issues which reuire a multilayeredstructure to address them. 7he principle of su)sidiarity "and federalism% ur+in+ thatdecisions )e taBen at the most decentralied level that can competently address the issueat hand is a core element of sound environmental policy. 7his principle su++ests theneed for division of la)or amon+ the various levels of +overnance and a carefullydelineated and limited a+enda for the +lo)alscale environmental )ody. Focus will )e aBey to success for any revitalied international environmental )ody.

7o )e effective a (lo)al Environmental 0r+aniation should also )e fle2i)le andresponsive to chan+e. =t should possess credi)ility amon+ environmental +roups andother 6(0s within the )usiness community and more )roadly within the /6 system.

!nalytic ri+or a commitment to sound science a firstrate staff capa)le of convenin+e2perts from around the world modern mana+ement and an oversi+ht mechanism areother essential features. 6ota)ly the availa)ility of adeuate and predicta)le resourceswill )e critical to the capa)ilities of a (E0.

! commitment to drawin+ into the international policymaBin+ process the )est datathinBin+ analysis and policy e2perience from the multinational economic institutions"70 orld @anB =?F% all the /6 entities with environmental responsi)ilities "CSD/6D /6C7!D etc.% the private sector non+overnmental or+aniations theacademic community and civil society at lar+e would dramatically transform the +lo)alenvironmental decisionmaBin+. ! (E0 could provide the forum where such Bnowled+eand e2pertise come to+ether.

6" Whats in a ame;

roposals for esta)lishin+ a +lo)al environmental )ody are not new. 7he first call forsuch an or+aniation appeared in 1,:4.33 7hirty years later the de)ate has unfolded witha new vi+or )ut the process has )ecome more complicated. ! ran+e of new actors andstaBeholders must )e +iven a chance to )e heard. !ny proposals for reform of theinstitutional architecture need to taBe this new political settin+ into consideration alon+with the new nature of the +lo)al environmental challen+es.

e ar+ue for the creation of a (lo)al Environmental 0r+aniation which differs from

proposals for a orld Environment 0r+aniation "E0% in terms of the core functionand or+aniational structure of the proposed entity.35 e draw a conscious distinction)etween +lo)al environmental concerns and the environmental pro)lems of theworld which include many issues that span the +lo)e )ut have only local impact.

33See Aennan 1,:4 advocatin+ the esta)lishment of an =nternational Environmental !+ency.35FranB @iermann for e2ample ar+ues that a orld Environment 0r+aniation should )e capa)le ofaddressin+ pro)lems related to purely local environmental +oods such as outdoor and indoor airpollution. See @iermann 3441 at -,.

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/pholdin+ su)sidiarity as a )asic tenet of environmental +overnance we contend that theor+aniin+ principle and functions of a (lo)al Environmental 0r+aniation shouldori+inate in the set of pro)lems that are inherently trans)oundaryPprotection of the+lo)al commons. ith re+ard to local or national scale harms we envision a main thrustof the (E0Gs efforts to )e information e2chan+e to support technolo+y transfer and the

identification of )est practices at policy community and corporate levels. @ut weforesee no pro*ect or operational role for the (E0 on such issues. e )elieve that whileindependently very important activities aimed at local issues "provision of drinBin+water wastewater treatment land mana+ement air pollution control etc.% should )eundertaBen )y national +overnments supported )y /6D the orld @anB and otherdevelopment entities.

8" Organizational Design

@uildin+ an institution with a clear mandate sta)le fundin+ and clear le+itimacy toaddress the pro)lems that nation states are incapa)le of tacBlin+ sin+lehandedly will taBe

e2traordinary political sBill and leadership. ! successful strate+y for advancin+ a (E0will reuire some com)ination consolidation and reor+aniation of the e2istin+ system.7he institutional mechanism we advance is one )ased on a multilayered structure torespond to multidimensional environmental pro)lems and an e2tensive pu)lic policynetworB to ensure participation transparency and accounta)ility.

e ultimately envision a threelevel structure "or what ?aurice Stron+ has termed atriple um)rella% inte+ratin+ various international environmental )odies with differin+de+rees of intensityPconsolidation coordination consultation. 7he core function of thenew or+aniation should )e to fashion a coherent and effective international response toinherently +lo)al issues e.+. those affectin+ the atmosphere )iodiversity and theoceans. !t the center of the entity we would therefore place the or+aniations

responsi)le for the +lo)al commonsP/6E ?0 the =nternational 0ceano+raphicCommission "=0C% and =nternational Hydrolo+ical ro+ramme "=H% of /6ESC0Ptoform the (E0.

7he or+aniationGs second level would )rin+ to+ether the structures and secretariatscreated under the spectrum of multilateral environmental a+reements. 7hese treaty)odies would )e colocated with the (E0 and inte+rated on the principle ofcoordination with a softer de+ree of control and an aim to create su)stantive syner+iesand economies of scale without compromisin+ the le+al character and independence ofthe Conference of the arties to each treaty. 3- 7he (lo)al Environmental 0r+aniationwould serve as a common mana+ement mechanism for these entities and seeB tostreamline their operations and improve their effectiveness throu+h a measure ofcoordinated )ud+etin+ administration staffin+ resource rationaliation and issueprioritiation.

3-roposals for clusterin+ of ?E!s have )een advanced )oth alon+ issue lines into five areas# atmosphericmaritime land chemicals and )iodiversityrelated conventions "/6E 3441a% and alon+ crosscuttin+functional issues such as trade capacity )uildin+ and the development of national implementin+ le+islation"/6E 3441%. ?ost important in any coordination attempt would )e the clusterin+ of missions andactivities and realiin+ tan+i)le syner+ies. Certain de+ree of )oth physical and virtual colocation would )eimportant in this re+ard.

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7he third level would involve no direct control )ut stron+ and permanent consultationlinBs with other international )odies that have environmental responsi)ilities includin+the CSD /6D F!0 H0 and /6ESC0. ! further set of consultative relationshipswould )e esta)lished with multilateral economic and development a+encies includin+ theorld @anB re+ional development )anBs and the 70 as well as with non

+overnmental or+aniations worBin+ in the field of environment.! critical element of a new or+aniation is the votin+ procedure.

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," Benefits of a GEO

Environmental improvements are often seen as a )urden rather than as a collective +ood.!ny reform of the institutional architecture is liBely to )e viewed with dou)t sBepticismand fears a)out the costs to )e )orne. 7he fundamental uestion for +overnments in6orth and South aliBe would )e whatGs in it for me Countries in the 6orth seeBeffectiveness and efficiency in addressin+ +lo)al scale harms that threaten to impose realcosts on their societies. 6ations in the South want economic +rowth and an euita)le+lo)al scale environmental approach that does not undermine their development.

! more streamlined and rationalied structure would )e )etter a)le to address )oth sidesof this euation )y providin+ an institutional mechanism for solvin+ pro)lems reuirin+international cooperation )y eliminatin+ overlappin+ mandates freein+ additionalresources and enhancin+ transparency accounta)ility and participation. Some of the)enefits from institutional reform resultin+ in the creation of a (lo)al Environmental0r+aniation would thus include#

,"1 Im?rove4 Colle5tive A5tion

Solvin+ a collective action pro)lem involves three phases. First the possi)ilities forcooperation need to )e identified and their relative value assessed. Second the partiesneed to a+ree on a scheme of cooperation that produces most )enefits for most actors and)ar+ain for their distri)ution. 7hird parties to the cooperative a+reement would reuireassurancePthrou+h monitorin+ and possi)ly enforcementPthat the other si+natoriesare complyin+ with their commitments.3, 7hus solvin+ collective action pro)lemsinvolves lar+e transaction costs that no sin+le actor would )e willin+ to )ear in thea)sence of cooperation from others.54 Shiftin+ from a prisonersG dilemma world of free

ridin+ and loselose outcomes to one where reciprocity is reco+nied and colla)orationunderstood reuires a carefully constructed institutional architecture.

! (E0 would )e a)le to provide the frameworB for addressin+ collective actionpro)lems )y "1% creatin+ a policy space for continuous interaction amon+ actors "3%ensurin+ that multidimensional issues are addressed directly and with full participationand "5% revealin+ the common interests of the parties throu+h a continuous flow ofinformation. Consensus )uildin+ critical for the solution of environmental pro)lemswould )e facilitated within an institutional structure that hi+hli+hts the repeat nature ofthe +ame. ?ultidimensional relations can facilitate a+reement )y providin+opportunities for tradeoffs that compensate for differences in cooperative +ains.51 7he)urdens of participation the risB of )ein+ a contri)utor while others are freeridin+ and

the threat of loss of competitiveness to violators would liBewise )e reduced throu+h a

3,7aylor and Sin+leton 1,,5.540n the issue of transaction costs see Coase 1,84.51See ?c(innis 1,;8 and Sand 1,,1 cited in 7aylor and Sin+leton 1,,5. See halley and Kissimos 3441for a proposal of a +lo)al environmental or+aniation as a mechanism throu+h which environmentalcommitments made )y custodians of environmental assets with +lo)al reach could )e e2chan+ed for nonenvironmental considerations "includin+ money% and there)y maBe pro+ress towards internaliin+ thee2ternalities involved at 54.

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structure that systematically tracBs commitments and e2poses noncompliance witha+reements. ! fi2ed open and transparent institutional structure would further allowdevelopin+ countries not only to have their voices heard more clearly )ut also to moreeasily form coalitions for )ar+ainin+ on issues of particular importance.

,"/ Im?rove4 'roblem #olving

=nformation Bnowled+e and the capacity to apply them are critical conditions forena)lin+ effective pro)lem solvin+. ! rationalied or+aniational structure with a central+oal of addressin+ environmental concerns in an inte+rated manner usin+ moderntechnolo+y and information tools has much to offer. ith a +lo)al pu)lic policy networBat its core a (E0 offers the promise of )roader participation more analytic ri+or and)etter pro)lem solvin+.

@y reducin+ the overlap of responsi)ilities that handicaps the current re+ime a (E0would allow for )etter )ud+et and issue prioritiation and more focused policy responses.=t would facilitate an appropriate matchin+ of planetary needs with fundin+ commitments

increased effectiveness and efficiency in respondin+ to environmental challen+es and amore sharply focused international environmental re+ime. ! more streamlined and evenvirtual structure would )e especially )eneficial to developin+ countries whose limitedhuman and financial resources could )e concentrated on the Bey ne+otiations andmeetin+s. /nderstaffed environment officials in the developin+ world would not have tospend their time traversin+ the world from meetin+ to meetin+ ne+otiation to ne+otiation.

,"9 Im?rove4 !egitima52

Compliance with international o)li+ations is not solely a function of the pro)a)ility ofsanctions )ut also of a perception of fairness le+itimacy and morality of the law. 53

7hese perceptions hin+e on )oth distri)utive *ustice and procedural *ustice maBin+the fairness of the outcome and the process important varia)les. =f norms rules andprinciples are seen as le+itimate they will +arner support and adherence. Countries willoften comply with rules if there has )een adeuate representation and participation in theprocess of developin+ them even if the final outcome is not to their immediateadvanta+e.55 /ltimately the le+itimacy of international institutions depends on whetherthey deliver useful results and whether their decisions arise from an appropriate politicalprocess. rinciples such as participation democracy and due process are thus central tole+itimacy.

!n innovative institutional mechanism such as that em)odied in the (E0 proposaloutlined a)ove would help to )uild support for international environmental initiatives. !)ody that en+a+es +overnments and non+overnmental entities aliBe promotes full andopen de)ate draws in wideran+in+ e2pertise and su)*ects all decisions to carefulscrutiny and review will systematically produce )etter and more dura)le policy outcomes.Such su)stantive stren+th and procedural care is what creates a sense of authoritativenessand fairness and therefore le+itimacy.

53See 7yler 1,,4.55=)id.

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,"6 #trengthene4 'oli52 #?a5e for the Environment

! consolidated environmental re+ime would not only provide a new center of +ravity foraddressin+ inherently +lo)al environmental concerns )ut would also esta)lish acounterpart and counter)alance to the 70 orld @anB =?F and other elements of theinternational economic re+ime. ! (lo)al Environmental 0r+aniation would )eespecially useful as a way of un)urdenin+ the tradin+ system of environmentaldecisionmaBin+ that it does not have the capacity to handle. ! (E0 would provide animportant de+ree of parallelism on the international scene helpin+ to )uild sensitivity topollution control and natural resource mana+ement issues into the 70Pand +reatersensitivity to trade and economic concerns into international environmental policymaBin+and treaties. =t is therefore of critical importance that a (E0 )e a)le to worB with the70 the orld @anB /6D and other )odies to esta)lish a functional division ofresponsi)ilities where trade environment and development intersect.

,"8 Im?rove4 (airness7he concerns of developin+ countries a)out euity are often cited as an impediment todevisin+ a new institutional mechanism. 7his euity a+enda has a num)er of dimensions.0ne uestion centers on who participates in the decisionmaBin+ process. ! consolidatedenvironmental re+ime would )e especially valua)le for developin+ nations. =n particulara sin+le forum and venue would maBe it much easier to monitor the spectrum ofinternational environmental issues at play and to contri)ute thou+htfully to the +lo)alscale de)ate even with a relatively small international policymaBin+ team. 7here would)e no need for the already overstretched Environment ?inistries of the South to traipsearound the world tryin+ to Beep up with the plethora of separate )odies and meetin+s.

! second issue involves who will pay for +lo)al scale environmental pro)lem solvin+.@y placin+ the principle of common )ut differentiated responsi)ilities at the center of a(E0 efforts to striBe a fair )alance of ri+hts and responsi)ilities with re+ard totrans)oundary environmental issues would )e improved. ! more carefully constructedand coherent set of international environmental standards would also alleviate fears in theSouth that the industrialied world will impose unreasona)ly hi+h standards "and perhapstrade penalties for noncompliance% on developin+ countries all of whom have manycompetin+ demands for limited pu)lic resources. =n this re+ard a fundin+ mechanism tosu)sidie developin+ country activities in pursuit of +lo)al environmental +oals will )eessential. =t would a+ain )e useful to consider esta)lishin+ a new unified mechanism )uildin+ on the (lo)al Environmental Facility characteried )y transparency

accounta)ility and euita)le decisionmaBin+.! third issue is whether Southern priorities especially a commitment to povertyalleviation will )e taBen seriously. =n this re+ard as noted a)ove the launch of a (E0must )e accompanied )y a parallel commitment to an invi+orated development a+enda.

! related uestion is whose values will )e promoted in a stren+thened internationalenvironmental re+ime. Such concerns maBe it essential that a (E0 )e seen as aninclusive forum that seeBs to )uild consensus on a )asis that respects the diversity of

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views present across the world. =t should also )e noted that properly mana+ed pu)licpolicy networBs create virtual pu)lic space that is easier to enter than the esta)lishedphysical fora where decisions are currently made. !n =nformation !+e set of outreachmechanisms could also decrease the distance )etween decentralied constituencies and+lo)al decisionmaBers maBin+ it easier to insert into the policy process the )road array

of values perceptions and perspectives that are now often overlooBed or incompletelyconsidered and facilitatin+ pu)lic understandin+ of the issues )ein+ addressed anddecisions )ein+ made at the +lo)al scale.

sion

7he +lo)al environmental mana+ement system is clearly fallin+ short of )oth the worldcommunityGs needs and e2pectations. ithout a concerted effort to addresstrans)oundary pollution spillovers systematically and to utilie the shared resources ofthe +lo)al commons responsi)ly the promise of sustaina)le development cannot )eachieved. =t is time therefore to reen+ineer the re+ime aimin+ for a new forwardlooBin+ sleeBer and more efficient architecture that will )etter serve environmental+overnmental pu)lic and )usiness needs. 7he lo+ic of a (lo)al Environmental

0r+aniation is strai+htforward# a +lo)aliin+ world reuires thou+htful ways to mana+eecolo+ical interdependence and we need to create an institutional mechanism that is up tothe tasB.

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=" $eferen5es

@iermann FranB and /do E. Simonis. 1,,;.A /orld Environment and Develo0ment-rganiation. Stiftun+ EntwicBlun+ und Frieden "Development and eaceFoundation% olicy aper ,.

http#$$www.fu)erlin.de$ffu$aBumwelt$En+lisch$downloadTen+l.htm

@iermann FranB. 3444. 7he Case for a orld Environment 0r+aniation.Environmentevitaliin+ =nternational Environmental =nstitutions# the /67asB Force >eport and @eyond.#ndian ornal of #nternational Law4

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uma Calestous. 3444. 7he erils of Centraliin+ (lo)al Environmental (overnance.Environment

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/6E. 3441. =nternational Environmental (overnance# >eport of the E2ecutiveDirector presented at the ?eetin+ of the 0penEnded =nter+overnmental (roupof ?inisters or their >epresentatives on =nternational Environmental (overnance6ew YorB !pril 1; 3441 "/6E$=(?$1$3%. !vaila)le athttp#$$www.undep.or+$ie+

/6E. 3441a. ?ultilateral Environmental !+reements# ! Summary >eport of theE2ecutive Director "/6E$=(?$1$=6F$1%. !vaila)le athttp#$$www.undep.or+$ie+

esources =nstitute%. 1,,;1,,,. /orld 9e$orce$ 1%%8;1%%%. ashin+tonDC.

http://www.undep.org/ieghttp://www.undep.org/ieghttp://www.undep.org/ieghttp://www.undep.org/ieghttp://www.undep.org/ieg