MSU’s Forest Carbon and Climate Program and researchers from Pontificia Universidad Católica del Perú and CIFOR are working with Peru’s forestry sector agencies to improve the Conditional Direct Transfer program that compensates indigenous communities for protecting communal forests. The program, now in its second 10-year cycle, is seeking to increase participant enrollment and retention rates to achieve ambitious forest conservation targets. The project team has suggested program design improvements that will enhance enabling conditions and reduce barriers to participation. There is potential to leverage this knowledge and use it to generate policy innovations in other benefits-sharing programs.