Abstract :
Today, Economic and environmental performance are tightly closed to each other. The natural
environment plays an important role in supporting economic activity; directly, by providing resources and
raw materials such as water, timber and minerals that are required as inputs for the production of goods and
services; and indirectly, through services provided by ecosystems including carbon sequestration, water
purification, managing flood risks, and nutrient cycling. Natural resources are, therefore, vital for securing
economic growth and development, not just today but for future generations. Economic growth has also
provided developing countries the opportunity to improve the quality of life of their citizens, and to balance
the environmental challenges they face. Investment, aid and demand for imports from advanced economies all
have an important role in supporting economic growth and development through the world. The main
objective of this paper is to highlight the role of the natural environment in supporting and contributing to
economic growth, and the role of environmental policy in achieving improved environmental outcomes in
ways that are compatible with the long-term health and stability of the economy. It does not try to answer the
question of what the sustainable level of economic growth might be, but instead reviews the evidence and
sets out an approach for securing environmentally sustainable economic growth for current and future
generations.
