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The Environmental Performance Review Programme is considered an important instrument for countries with economies in transition. The second round puts particular emphasis on implementation, integration, financing and the socio-economic interface with the environment. This report takes stock of the progress made by Bosnia and Herzegovina in the management of its environment since the country was first reviewed in 2004. It assesses the implementation of the recommendations in the first review (Annex I). It also covers nine issues of importance to Bosnia and Herzegovina concerning policymaking, planning and implementation, the financing of environmental policies and projects, and the integration of environmental concerns into economic sectors, in particular water management, waste management and forestry.