Between 2005 and 2013, Peru experienced above-average economic growth compared to other countries in Latin America and the Caribbean. This process of development has led to widespread pressure on the environment. To make economic growth compatible with preservation of the environment and sustainable use of natural resources, Peru has taken steps to strengthen its environmental institutions. Peru’s Public Environmental Expenditure Review (PEER) provides an in-depth analysis of expenditures between 2008 and 2013 within all public institutions at the national, regional, and municipal levels with a record of expenditures whose main purpose is environmental management. The first part of the document presents the quantification of public expenditure and the identification of the main institutions that execute it. Following quantification, an analysis of the coherence between the expenditure and the government’s strategic objectives is conducted. The last part contains an analysis of expenditure effectiveness in several areas of environmental management and provides policy recommendations. The Review can be downloaded from the Inter-American Development Bank’s website.