Throughout the three phases of the process, PEI works with countries to strengthen institutions and capacities.

Institutional and capacity development starts by assessing the needs for institutional strengthening and capacity building. It can be followed by learning-by-doing capacity development, also called tactical capacity building. In the longer-term, institutions are able to embed poverty-environment in government processes, procedures and systems. Countries can also design a longer-term capacity building strategy targeting various development processes, at national, sector and local levels. 
A number of reviews, methodologies, tools and examples from countries can be used as reference.

Reviews and introductory documents

• A Brief Review of 20 Tools to Assess Institutional Capacity, UNDP, 2005 
• Environmental Leadership Programmes, UNEP, UNESCO, Brown University, IMO
• Enhancing Capacity Building for Integrated Policy Design and Implementation for Sustainable Development, UNEP, September 2005

Methodologies and tools

• UNDP Capacity Assessment User’s Guide, 2007
• National Capacity Self-Assessment - Resource Kit, UNDP, GEF, September 2005
• A Guide for Self-Assessment of Country Capacity Needs for Global Environmental Management, GEF, 2001
• UNEP Resource Kit 
• UNDP Capacity Assessment Methodology User Guide, UNDP, 2007
• UNDP Capacity Assessment Supporting tool, UNDP, 2007
• Ownership, Leadership and Transformation: Can we do better for Capacity Development, Carlos Lopes and Thomas Theisohn, UNDP, 2003
• Ways to Increase the Effectiveness of Capacity Building for Sustainable Development, UNEP, May 2006

Examples from countries

• Kenyan Delegation Learns from the Tanzanian Experience of Mainstreaming Environment, 2006
• Third Annual PEI Africa meeting, 2007 
• Uganda: A Monitoring and Evaluation Framework for poverty and environment and law, Rhohn Development Services Ltd, 2006