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This paper considers the potential environmental impact of genetically modified (GM) crops and links this to the concepts of biodiversity and ecosystem services, which has been substantially impacted by previous introductions of new technologies. The authors suggest that the concepts of biodiversity and ecosystem services should be the basis of environmental risk/impact assessment. They suggest a transparent, knowledge-based assessment procedure by which important functions and the species or groups that are most significant for this function are identified. This provides one way to develop specific pre-release testing and monitoring systems to assess the environmental impact of GM plants. It also allows for the identification and evaluation of the significance of knowledge gaps, thus making the precautionary approach in risk assessment operational.