Strategic environmental assessment (SEA), uses indicators, together with objectives and targets to monitor change and predict impacts of proposed plans and programmes on the environment. Several environmental receptors are outlined in the European Union SEA Directive that must be addressed. The numerous lists of indicators available may be useful but may also restrict and influence practitioners. In this paper, a theoretical methodology is presented for developing a set of objectives, targets and indicators for a specific proposed plan or programme. The main emphasis is on air, biodiversity, water and climatic factors, but the basic principles will be applicable to all other environmental receptors listed in the Directive. The output(s) will help maximise existing resources, minimise the need for new monitoring systems and reduce the cost of the implementation stage of SEA.