Despite substantial investments to curb tropical deforestation, effective conservation incentives for Indigenous peoples and local communities is not well-defined and generally under-researched. This study assessed an incentive mechanism in Peru for Indigenous communities that protect enrolled forests to explore whether the stated program goals are actualized in programmatic elements like the requirements, monitoring, and assessment of prioritized outcomes. The research team worked with Indigenous partners to develop key questions regarding how the mechanism could better support their values of conservation and development. Data were sourced from interviews with implementation experts and participants in eight Indigenous communities, a review of programmatic documents, and an assessment of nationally aggregated community data. The results revealed challenges in program capacity, a lack of cultural awareness, and a reliance on capitalistic economic indicators that exclude other aspects of well-being important for Indigenous peoples. We find that the program’s success indicators do not adequately align with conservation or social realities on the ground and that enhanced indicators are needed to ensure success and avoid negative unintended consequences. We demonstrate that enhancing the assessment of governance, economics, engagement, and social inclusion can improve the design, implementation, and monitoring in this and similar programming. We conclude with generalizable recommendations for establishing requirements and monitoring in existing and future conservation incentive programs that target Indigenous communities.

Peru cannot meet its ambitious goal of protecting over 54 million hectares of primary tropical forests without the collaboration of Indigenous Peoples, who have rights over nearly one third of fore...