This report provides an overview of the state of the natural environment in South Asia, including emerging trends, taking into account socio-economic factors.South Asia occupies about 5 percent of the world’s land mass, but is home to about 20 percent of the world’s population. This is expected to rise to about 25 percent by 2025. Three-quarters of South Asia’s population lives in rural areas, with one-third living in extreme poverty (on less than a dollar a day). Their well-being is further compromised by indoor air pollution, which is a severe health hazard.The report concludes that South Asia is very vulnerable to climate change. Impacts of climate change have been observed in the form of glacier retreat in the Himalayan region, where the approximately 15,000 glaciers will likely shrink from the present total area of 500,000 km² to 100,000 km² by 2035. These glaciers form a unique reservoir,which supports perennial rivers such as the Indus, Ganges and Brahmaputra, which, in turn, are the lifeline of millions of people in South Asian countries (Bangladesh, Bhutan, India, Nepal, and Pakistan). This will exacerbate the challenges of poverty reduction and improving access to safe drinking water, two of the Millennium DevelopmentGoals.