In a report published in April 2006 and entitled “Why a healthy environment is essential to reducing poverty”, the Organisation for Economic Co-operation and Development (OECD) shows that the poorest people and the poorest countries are the most affected by environmental degradation. They have to earn a living from marginal lands, forests, coastal waters or the peripheries of urban centres. Women and children, who are often responsible for tasks related to water and fuel collection, are disproportionately affected.

In developing countries, 20% of the total loss of life expectancy is attributable to environmental causes. Moreover, unsafe water, due to poor access to water supply, sanitation facilities and hygiene, is responsible for 3.1% of all deaths worldwide. Over 99% of this burden occurs in developing countries.

Environmental assets make a far large relative contribution to national wealth in developing countries than in high income countries. In many poor countries, environmental resources provide a safety net which can prove to be vital during crises. At the same time, much economic activity in the developed countries also depends on a healthy environment.

More aid is needed. Air flows have grown in recent years, and are projected to do so even more in the future in line with the recent international commitments made by OECD Members. Much of this aid will support development initiatives which have strong environmental benefits, such as improving access to modern energy sources for the poor, while some will directly support environmental objectives.

Donors now increasingly provide their assistance for programmes, sectors, or poverty reduction and long-term development plans, rather than for specific projects. This opens new opportunities for dialogue and reform on environmental issues where it really matters, at the level of policies such as pricing, taxation, licensing laws and privatisations. New approaches (notably Strategic Environmental Assessment and Environmental Fiscal Reform), and new financing instruments (such as the Clean Development Mechanism under the Kyoto Protocol) provide new opportunities for supporting poor countries’ efforts towards environmentally-friendly development. Donors are already making efforts to apply these tools when implementing aid.

The report is available at the OECD website.