Following the launch of the new initiative Energy Policy for Europe (EPE) at the spring summit in March 2006, the next challenge facing the Austrian Presidency of the European Union (EU) is to re-launch the European sustainable development strategy bringing together economic, social and environmental objectives and policies. The purpose of this EPSD report is to contribute both to the debate on energy and to the re-launch of the sustainable development strategy. The report includes: 1) An introduction to the sustainability challenges faced by the EU and the need to integrate economic, social and environmental goals and policies into one comprehensive European strategy; 2) A broad overview of resource efficient technologies, focusing on energy technologies, which can contribute to sustainable production and consumption; and, 3) An analysis of public policies for sustainability, including a discussion of how the Commission proposal "A Platform for Action", together with the Lisbon strategy and the new EU Green Paper on "Sustainable, Competitive and Secure Energy", could be developed into a well co-ordinated investment strategy for "smart growth".