The purpose of these Key Sheets is to provide decisionmakers with an easy and up-to-date point of reference on issues relating to the provision of support for sustainable livelihoods. This paper looks at Environmental Assessment and in what capacity it is used. It gives an overview of the Development agencies focus increasingly on issues of sustainability, poverty reduction and the livelihoods of the poorest. Environmental Assessment provides a systematic framework to address these challenges. Many stakeholders see the benefits of Environmental Assessment but its effectiveness is constrained by many factors. These are outlined in this paper their impact upon key policy decisions is explained.