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Pacific island countries are increasingly exposed to series of environmental hazards that threaten the health of the Pacific islands communities and its natural environment. Climate change tops the list of big issues across all island groups, while local environment battles are being waged over deforestation, land and sea mining, urban migration, infrastructure deelopment and population growth. These brings with its environmental issues such as waste pollution, invasive species, unsafe water, poor sanitation, air pollution, hazardous chemicals and occupational hazards which contributes to poor livelihood.

The Federated States of Micronesia SoE examines major drivers of change to the environment that emerge from global, regional and national factors. It evaluates the main environmental pressures created by these drivers, and examine theri envieonmental impact. The SoE also gives actionable recommendations as a nation to improve the environmewnt for sustainable growth. The SoE Report is a useful refernce to guide natiomal development efforte and to improve livelihoods. Information in the SoE Report will help improve decision-making on the environment and in the allocation of resources to better protect the environment.

As part of the preparation of the Pacific Region Environmental Strategy (PRES) the Asian Development Bank (ADB) has funded a field study in Yap State, Federated States of Micronesia with regard to traditional approaches to the management of natural resources and their relationship to modern resource management and to the development of tourism. It is intended that this study contribute to the guidelines of PRES for environmental sustainability and be of general use to other Pacific island members of the Bank.