Development requires not only better global economic governance but also a cleaner environment, with basic natural resources secure and used sustainably at the global level, while available to and affordable by all at the household and individual level. The following topics look at four interconnected issues: climate change, and food, water and energy security.

Tackling climate change is one of the major environmental challenges of this century. It is likely to have a profound impact on natural and social systems and therefore the prospects for economic development and poverty reduction in developing countries which, although they have contributed least to the problem, are likely to be particularly vulnerable to its effects due to their greater dependence on climate-sensitive natural resources, their high growth in potentially vulnerable locations, and the limited resources they have to cope with adverse impacts.

The FAO estimated there were 925 million undernourished people as of late 2010 - a number that has likely risen with further increases in food commodity prices and volatility since then. Food security remains centre stage in international discussion. Achieving the Millennium Development Goal of halving the proportion of people living in hunger by 2015 will be difficult. Looking further ahead, the projected rise in the world’s population to 9 billion by 2050 is estimated to require an increase of 42% in global food production by 2030 and 70% by 2050.

Water security embraces the issues of water stress, water quality, flood management, access to water and sanitation services, and ensuring adequate water to maintain ecosystems. This topic focuses on the issues of scarcity and access. Many parts of the world are suffering from increased competition for water as overuse and pollution reduce available sources. Climate change is creating additional pressures. In addition, global water consumption is expected to increase by 50% over the next 30 years due to factors including development, population growth, and urbanisation. The number of people living under severe water stress is expected to rise from around 2.8 billion to 3.9 billion by 2030, of which nearly 3.5 billion will live in developing countries. Over 1 billion people still lack access to safe drinking water and 2.6 billion are without access to adequate sanitation.

We live in a world of growing energy demand and interdependence. Energy security is central for sustainable economic growth and poverty reduction. It is also inextricably linked to other global challenges: energy systems are the major contributors to climate change, representing around 60% of total current greenhouse gas emissions. But despite rising global energy use, many developing countries lack access to adequate, affordable and reliable energy supplies, severely constraining growth, productivity, and employment. Many poor households still have no access to modern energy services. The IEA World Energy Outlook 2010 (IEA/WEO, 2010) estimates that 1.4 billion people around the world still lack access to electricity, projected to fall only marginally to 1.2 billion by 2030. Some 2.7 billion rely on the traditional use of biomass, with a projected increase to 2.8 billion in 2030.