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The report is published with the objective of presenting in a clear and timely manner, an analytical overview of the state of the environment focusing on issues, policies and strategies of the key environmental challenges confronting the Maldives today. The reports highlights that with the increase in population and socio-economic development, the challenge of implementing sustainable development lies in the difficult trade off we are faced with where the society has to find a balance between economic growth, social equity and the conservation and protection of the environment. Key to sustainable development path depends on the integration of social, economic and environmental goals.