In addition to providing loans, the World Bank's advisory services have also seen a clear increase, in an effort to step-up the level of integration of the environmental component in both World Bank and country programs.

“This is very good news,” says Ian Johnson, Vice President for Sustainable Development at the World Bank, “but the most important thing is that environment sustainability is a key institutional priority, and environmental responsibility is now a distinctive feature of the overall lending portfolio.”

Currently, active projects with environmental and natural resource management content amount to $13 billion, representing about 13 percent of the total active portfolio of the World Bank. In particular, lending for environmental policies and institutions, a key area emphasized by the Bank's Environment Strategy , is rising sharply.

The process of institutionalizing environmental responsibility in all operations has been expanded during 2002-2003. Infrastructure projects now represent a fundamental vehicle of implementing initiatives with substantial environmental benefits.

According to Kristalina Georgieva, Director of the World Bank's Environment Deparment, “More than 50 percent of the funding related to environmental sustainability is done through Infrastructure projects. This is a powerful message that we are making progress in mainstreaming environmental concerns into operational work.”

Georgieva added that “This increase in the World Bank's environmental lending is due, in large part, to the progress in implementing the 2001 corporate Environment Strategy, which indicates a renewed focus in three areas where environment, quality of life, and poverty reduction are strongly interlinked: enhancing livelihoods; preventing and reducing environmental health risks; and reducing people's vulnerability to environmental hazards.”

According to Environment Matters, during this past fiscal year, the Bank has continued improving its application of environmental and social safeguard policies. About 83 percent of all new investment lending is subject to an Environment Assessment (EA), reflecting more rigorous application of the safeguard policies.

Environment Matters is an annual review of the World Bank's environmental programs in developing countries and its global engagement. It brings together external and internal viewpoints on the challenges ahead. This 2003 edition is dedicated to 'Water and the Environment'.

Useful links: For more information, see the website: www.worldbank.org/sustainabledevelopment