This report assesses environmental conditions in Indonesia's NanggrÃ¶e Aceh Darussalam province (Aceh) and Nias, in the province of North Sumatra, two years after the tsunami that occurred in the Indian Ocean on 26 December 2004. The report arrives at a pivotal moment, as the reconstruction process is being re-evaluated from a number of critical perspectives. In retrospect, it is clear that environmental concerns were not sufficiently incorporated into strategic planning at the outset of the reconstruction process, and that as a result, reconstruction efforts have contributed to further degradation of Aceh's environment in the months since the tsunami. This report identifies the key issues and provides recommendations to strengthen reconstruction efforts, help the region achieve sustainable development and reduce risks from future potential disasters. This document is divided into three chapters. The first analyses ˜green' issues related to ecosystems and biodiversity; the second focuses on the ˜brown' issues linked to human development and infrastructure; and the third examines the region's institutional capacity to implement environmental reconstruction and recovery. In addition to the findings, the report contains a series of recommendations and “ as annexes “ specific project concepts.