The Financial Instrument for the Environment (LIFE) III programme has been extended by two years to last until 31 December 2006. This extension was made in order to avoid a gap between the close of LIFE III at the end of 2004 and the new Community financial perspective beginning 2007. This updating Report has been prepared by the Commission in accordance with requirements for it to do so under EU legislation. The current update covers the period from mid-2003 until Spring 2005. To recall, between 1992 and 2004, the LIFE programme has co-funded almost 2500 projects covering 40 countries and made commitments worth EUR 1.3 billion towards the total estimated cost of the projects of EUR 3.6 billion. The projects supported are those which are in line with key EU environmental policies and thinking.