Climate Focus in collaboration with Sud Austral has been commissioned by the Chilean forest agency (CONAF) and UNDP to develop the design and pilot transactions for a National Forest and Environmental Fund. This fund will support Chile’s REDD+ implementation and possibly administer a future payment-for-ecosystem services (PES) program.  Climate Focus and Sud Austral will advise on the financial structure of the fund and develop transactions relying on PES for small and medium landowners.  The task is divided into an analytical part, in which the analysis of the financial, legal and structural options is conducted; and an operational part, where pilot activities of the PES will be developed and implemented.