A sustainable energy supply is a precondition for economic and social development and achievement of the Millennium Development Goals. In many parts of the world, a large share of the population have no access to modern energy services. At best, towns and industries are supplied with antiquated and unsustainable energy facilities.

Energy cooperation in South Asia presents tremendous potential for the development of regional resources in an integrated manner by exploiting the complementarities and optimal utilisation of available resources. Much will depend on how South Asia benefits from its proximity to south western and central Asia to meet its gas and oil needs.

THE extraction, transportation and conversion of fuels and the end-use of energy have resulted in a wide range of environmental problems. It is tempting to believe that development is the most