Globalisation is a process in which economic markets, technologies and communications gradually become more "global", and less "national" or "local". It contributes to income growth and higher standard of living, through a more efficient allocation of resources. International trade and investment are highly visible parts of the globalisation process.

The global environment is coming under increasing strain by more intense economic activity. The environmental effects of economic globalisation will partly depend on the net effect of a number of impacts from trade and investment liberalisation. Where this net effect is negative, however, this will usually be because of inadequate environmental policies, rather than poorly designed economic ones.

Ensuring that adequate environmental policy instruments are put in place to maximise the positive (and minimise the negative) effects of globalisation will therefore be an important challenge to governments.

Globalisation is also likely to intensify the need for stronger environmental policies, rather than to lessen it. The increasing globalisation of environmental issues and the important economic competitiveness problems often associated with these problems both imply the need for strong environmental policies -- policies that will inevitably require more international co-operation.

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