This report finds that Department for International Development (DFID) has the potential to take the lead internationally on integrating the environment into development: the structures and links exist but there is still an under-appreciation of the role of the environment in sustainable development. The report sets out the background, covering what poor people want, the Millennium Ecosystem Assessment, and Millennium Development Goals. It then considers development aid and how it is changing. Then the DFID's performance in integrating environment into development is critically examined. Subjects covered include DFID policy, water, climate and energy, agriculture, growth, environmental capacity, environmental screening, and the environment strategy. The Committee notes the failure of the Department to develop a coherent approach on the ground, as a damning review of country programmes has shown. It also highlights many areas where policy is poorly drafted and implemented, and where the Department's environmental expertise has been allowed to wither. The recent White Paper, 'Eliminating world poverty' (2006, Cm. 6876, ISBN 0101687621) is seen as a missed opportunity to make the environment as central to its work as the Department itself has made clear it should be.