The potential positive and negative effects of nanotechnology on the environment are discussed. Advances in nanotechnology may be able to provide more sensitive detection systems for air and water quality monitoring, allowing the simultaneous measurement of multiple parameters and real time response capability. Metal oxide nanocatalysts are being developed for the prevention of pollution due to industrial emissions and the photocatalytic properties of titanium dioxide nanoparticles can be exploited to create self-cleaning surfaces that reduce existing pollution. However, while nanotechnology might provide solutions for certain environmental problems, relatively little is known at present about the environmental impact of nanoparticles, though in some cases chemical composition, size and shape have been shown to contribute to toxicological effects. Nanotechnology can assist resource saving through the use of lightweight, high strength materials based on carbon nanotubes and metal oxide frameworks as hydrogen storage materials. Other energy related applications include nanostructured electrode materials for improving the performance of lithium ion batteries and nanoporous silicon and titanium dioxide in advanced photovoltaic cells. It is important to develop an efficient strategy for the recycling and recovery of nanomaterials and methods are needed to assess whether the potential benefits of nanotechnology outweigh the risks. Life cycle analysis will be a useful tool for assessing the true environmental impacts. r