During the second phase of implementation of a PEI programme, PEI supports countries in quantifying the contribution of natural resources and environment to public finances. It helps countries in budgeting policy interventions and programmes and in designing an investment strategy for poverty-environment. Innovative financing options, including developing a domestic financial base for environmental management, need also to be developed.

A number of reviews, methodologies, tools and examples from countries can be used as reference.

Reviews and introductory documents

• Getting the Most for the Money — How Public Environmental Expenditure Reviews Can Help, Environment Strategy No. 16, Anil Markandya, Kirk Hamilton, and Ernesto Sanchez-Triana, World Bank, September 2006
• From Goodwill to Payments for Environmental Services: A Survey of Financing Options for Sustainable Natural Resource Management in Developing Countries, WWF, 2003    
• Environmental Accounting: What's It All About? , IUCN
• Public Environmental Expenditure Reviews (PEERS) - Experience and Emerging Practice, Environment Strategy Paper No. 7, World Bank, 2003   
• Minding the Gaps Integrating Poverty Reduction Strategies and Budgets for Domestic Accountability, World Bank, GTZ, German Federal Ministry for Economic Cooperation and Development, 2007
• Addressing environmental objectives in the context of budget support, ODI, 2006
• Making Environmental Spending Count – Policy Brief, OECD, September 2007
• Government institutions, Public Expenditure, and the Role of Development Partners: Meeting the New Environmental Challenges of the Developing World, ODI, 2008
• Budget Analysis and Policy Advocacy: the Role of Non-Governmental Public Action, Institute of Development Studies, 2006
• Environmental funding

Methodologies and tools

• The Handbook of National Accounting: Integrated Environmental and Economic Accounting, United Nations, European Commission, International Monetary Fund, Organisation for Economic Co-operation and Development, World Bank, 2003
• The Handbook of National Accounting: Integrated Environmental and Economic Accounting - An Operational Manual, UNSD, UNEP, 2000 [English], [French], [Spanish]
• Policy Applications of Environmental Accounting, Environmental Economics Series, Paper No. 88, World Bank, Glenn-Marie Lange, 2003
• Green Accounting: A Virtual Resource Center, UNEP
• The Biodiversity Economics Library, IUCN

Examples from countries

• Mainstreaming Environmental Issues into Budget Framework Papers - User's manual, PEI Uganda, 2007
• Public Expenditure Review of Environment, The United Republic of Tanzania, 2004
• Towards Natural Resource Accounting in Tanzania: A Study on the Contribution of Natural Forests to National Income, CEEPA, 2002
• Introducing Environmental Sustainability into the Ugandan System of National Accounts, The Earth Institute at Columbia University, Glenn-Marie Lange, 2005