The rehabilitation of Homebush Bay is an example of ““sustainable development’’–economic growth that preserves the environment for future generations. Since 1992, when 100 world leaders gathered in Rio de Janeiro for the Earth Summit, sustainable development has ostensibly been a planetwide goal. But a lack of progress, especially in the developing world, has disappointed environmentalists. The Sydney Games, however, may provide a new spark. The city and its Olympic committee, along with environmentalist organizations like Greenpeace, are aiming to make the Games a living laboratory for sustainable-development techniques. Says William Browning of the Colorado-based Green Development Services, ““Sydney could be our big breakthrough, and a very visible one.''

The Green movement needs it. Last June world leaders met in New York to evaluate their progress five years after the Earth Summit, and gave themselves a failing grade. Since 1992 industrial countries have failed to fork over a promised $125 million in new, annual aid to guide eco-friendly growth in developing countries. Meanwhile, deforestation, species extinction and the use of industrial pollutants continue to climb.

The millennial Games, their planners hope, will get sustainable development back on track by boosting public awareness. The $137 million revitalization of Homebush Bay will provide a model of how to turn a once forsaken dump into a dynamic city center. On the site, the Olympic Park will provide venues for 15 of the 27 events. All the structures are being built with earth-friendly materials and minimal use of the plastic compounds called PVCs. Cars are out; VIPs will arrive by ferry, and other spectators will take modern trains and buses.

But the most impressive innovations are in the 200 houses of the Olympic Village. Each unit will have its own solar panel of photovoltaic cells to convert the Australian sun directly into electricity. The buildings will be connected to a central power grid, drawing energy in times of need and sending it back during surplus. And the whole community will have a dual water supply: recycled water for lawns and toilets, fresh water for drinking. ““This is where we should be now. But the reality of the day is that this is a big step forward,’’ says Michael Bland of Greenpeace.

The real challenge will come in keeping together the always fragile coalition between environmentalists and the government. Recently green groups criticized the city for not completely ridding Homebush Bay of the toxic compound called dioxin. The government says that current levels are safe and stresses the significance of putting on the most environmentally friendly Games in history. ““If we can actually get government, industry and community to work together on the Olympics, then we can spark the enthusiasm that was there at the beginning of the Earth Summit,’’ says Peggy James, coordinator of Green Games Watch 2000. Athens won the 2004 Olympics by matching Sydney’s environmental ambitions. Environmental proponents are hoping the rest of the world will do the same.