World Bank Discussion Paper 426 Governments have increasingly come to recognize the economic potential and fiscal advantages of privatisation. Privatisation, under the right conditions, can also yield environmental benefits and contribute to sustainable development. This report contains a number of case studies that highlight the lessons learned about the environmental implications of privatisation. It stresses that privatisation offers an opportunity for making strategic decisions with longer-term impacts. This report also emphasizes that integrating environmental and social considerations into the privatisation process leads to more sustainable outcomes. It also recommends strategies toward building on the positive linkages between privatisation and environmental protection.