The economic losses resulting from theenvironmental impacts considered in this report areequivalent to more than 4 percent o f Bangladesh'sGross Domestic Product. Among these impacts, three sourcesof environmental degradation stand out as currentlyreceiving insufficient attention given their relativesignificance: (1) in door and urban air pollution, (2) thedegradation o f water quality in Dhaka, and (3) the declineof capture fisheries. The economic losses associated withthese three concerns alone may amount to more than 2.7percent of GDP. The report proposes a set of actions in eacho f these areas, and also identifies a series of measuresthat could be taken to strengthen environmental governance,which forms an overarching constraint to improvedenvironmental management across all issues. While the reportestimates the economic losses associated with theenvironmental impacts considered, it does not provide abenefit-cost or cost-effectiveness analysis of the proposedmitigating actions. It will be important to examine thecosts of the proposed actions in more detail as an elementof the follow-up work in each o f the priority areas.