This 2001 Energy and Development Reportreflects on the progress made since July 1999, when the needto include environmental concerns in energy sectordevelopment was acknowledged. The review looks at thecontext in which the energy, and environment debate is nowset, and examines the primary outcomes of the strategy inrelative depth. The second part reviews ways to create theframework for energy and environment, by enhancing capacitybuilding, the knowledge base, and dissemination practices,through case studies and perspectives on sustainable energysystems. Reducing air pollution is further explored in thecontext of facilitating the transition from traditional, tomodern fuels, by improving access to modern energy, whileprotecting the health of - mainly - urban residents from airpollution. In addition, through case studies on districtheating, power distribution, and, initiatives regarding gasflaring reduction, the report focuses on the promotion ofenvironmentally, sustainable development of energyresources, and on mitigating the potential - adverse -impact of energy uses on climate change. Future issues ofconcern include the trade-offs between the poverty, andenvironmental agendas in the energy sector, environmentalregulation, climate change, and building partnerships.