Harnessing public resources in support of poverty-environment mainstreaming is important for achieving pro-poor and environmentally sustainable development. A Public Environment Expenditure Review (PEER) examines the extent of government expenditure on environmental, natural resources and climate priorities across sectors, what was achieved as a result and whether the results achieved meet pro-poor and environmentally sustainable development objectives. PEERs can also include an assessment of the performance and efficiency of the institutional mechanisms governing expenditure and reporting.

Generating information to effectively track environment and climate expenditure is instrumental not only for accurate accounting purposes and identifying investment gaps for sustainable environment and natural resource management, but also for the potential of accessing global climate funds to bridge these gaps. The PEI Africa theory of change assumes that increased investments in environment and sustainable natural resource management by the government and other development partners ultimately will lead to improved livelihood opportunities for those vulnerable groups that depend on these resources for their livelihood. 

Therefore PEER is one of the key tools applied by PEI in Africa. Most recently, PEI Botswana finalized a PEER Scoping Study that will be followed by a full-fledged PEER review. The presentation of the scoping study was well received at the PEI Botswana Steering Committee meeting on August 21, 2013. Both Malawi and Mali are also in the process of finalizing PEERs in 2013.

In 2012, the Ministry of Environment in Mozambique with PEI support carried out a PEER, which showed that only 1.4% of GDP is the average environmental expenditure despite the fact that environmental degradation and unsustainable natural resource management is estimated to cost the country 17% of its GDP. This revelation has helped to enhance the role of Mozambique’s Ministry of Finance in poverty-environment mainstreaming in the country. Following the dissemination of the results and recommendations of the PEER, the Ministry of Finance has appointed two environmental focal points and is reviewing the way budget codes for environment, natural resources and climate change are being used (Read more here).