This annual report lists and describes the World Bank Group's portfolio of projects designed to improve or protect the environment, all of which were under implementation during fiscal year 1996 (July 1, 1995 to June 30, 1996). The first part of the report discusses significant environmental issues for each sector and region and describes the environmental activities of various parts of the World Bank Group. Boxes, tables, and figures supplement the narrative. A useful bibliography of World Bank publications on environmental topics closes the section. The second part consists of reports on environmentally targeted projects; World Bank and International Finance Corporation (IFC) projects that required a full environmental assessment because of their potential impacts; investment operations supporting projects launched by the Global Environment Facility; and projects designed to help developing countries comply with the Montreal Protocol - a multilateral treaty that controls the production and consumption of ozone-depleting substance.