The Project will complement and reinforce the country's Emission Reduction Program (ERP) by expanding participation, strengthening capacities, and improving benefit-sharing processes for target communities, with a strong emphasis on social inclusion, gender equality, youth engagement, and culturally appropriate approaches to sustainable forest management.The Project will be implemented through a territorial approach in selected areas that currently benefit--or have the potential to benefit--from the ERP, its Benefit Sharing Plan (BSP), and other Reducing Emissions from Deforestation and Forest Degradation(REDD+) initiatives, including national forest incentive programs and forest-related strategies.The Project has three components:Component 1: Strengthen participation and access to benefits under Guatemala's Emission Reduction Program (ERP) and other results-based climate and forest incentive programs (US$2.4 million). This component will help Indigenous Peoples and Multicultural Forest Communities (IP&MFC) participate more effectively in Guatemala's ERP, benefit sharing arrangements, and other national climate, forest, and emissions-reduction programs that use performance-based incentives. It will focus on strengthening community organizations, reducing practical barriers to participation, and supporting fair and transparent benefit distribution, with particular attention to women and youth.Subcomponent 1.1: Strengthen the organizational capacity of IP&MFC organizations and communities to enable equitable participation in the ERP and its BSP (US$1.6 million). This subcomponent will support IP&MFC organizations and their members to better access ERP benefits and related forest and climate initiatives. Activities will focus on three practical areas:a) Strengthening community organizations (US$0.6 million). The Project will help community organizations improve basic administrative, technical, and financial skills so they can engage more effectively with government programs, manage funds, and support their members. Training will be culturally appropriate, delivered in local languages, and coordinated with relevant institutions (INAB, CONAP, and Ministry of Environment and Natural Resources (MARN)). b) Supporting access to ERP and other incentive programs (US$0.4 million). The Project will provide hands on technical and financial support to help communities prepare and submit applications to the forest and climate finance programs. This includes support to prepare forest management plans, obtain required approvals, and cover related legal or technical costs, drawing on lessons from communities that have already successfully accessed the ERP with their ancestral collective land titles (Chuamazan and Quiacquix Parcialidades). c) Promoting fair and transparent benefit distribution (US$0.4 million). The Project will support communities to design simple, locally appropriate project-level BSPs, considering cultural practices and gender roles. This includes supporting local governance structures, social accountability and transparent mechanisms, and community dialogue to ensure benefits are used transparently and in ways that support long-term forest conservation. Implementation will build on EnABLE experience showing that targeted support for women and youth--combined with practical roles, intergenerational learning, and safe participation spaces--helps strengthen trust, leadership, and sustained engagement.d) Supporting IP&MFC representatives--particularly women and youth--to participate more effectively in national and international decision-making platforms related to forests, climate change, and benefit sharing (US$0.2 million). Activities will include support for participation in policy platforms, dialogue with government institutions, peer exchanges, and social accountability initiatives that help communities engage constructively in decision-making processes.Subcomponent 1.2: Strengthen communal and ancestral land tenure security to enable equitable access to ERP benefits and support sustainable land and forest management (US$0.8 million). This subcomponent will address land tenure issues that prevent many communities from accessing ERP benefits. It will provide legal, technical, and mediation support to help communities clarify and strengthen rights over communal and ancestral lands. Activities will include support for land surveys and mapping, recovery of historical land records and ancestral titles, doctrinal jurisprudence at the national and international level (Inter-American Human Rights Court), conflict resolution related to land claims, and strengthening community governance arrangements related to land management. These actions aim to improve tenure security while supporting biodiversity conservation and sustainable land use. Implementation will be carried out in coordination with the Cadastral Information Registry (RIC), ensuring the required institutional interactions are properly managed.Component 2: Support community led forest management and livelihood investments that generate local employment, strengthen climate resilience, and reduce emissions (US$1.8 million). This component will finance practical, community-led investments that reduce deforestation, support livelihoods, and strengthen climate resilience, in line with Guatemala's national REDD+ strategy.Subcomponent 2.1: Finance community-led forest investments for sustainable livelihoods (US$1.6 million). The Project will finance small-scale investments led by IP&MFC organizations aimed at assisting the design of their Cultural Forest Management Plans (CFMP) and implement their investment plans. These investments are expected to generate local jobs and livelihoods opportunities through community-based forestry, agroforestry, ecotourism, restoration activities, and forest-related value chains, with particular focus on women and youth. Subcomponent 2.2: Explore feasibility and design of a Sustainable Dedicated Financial Mechanism (DFM) (US$0.2 million). This subcomponent will support technical assistance to explore the feasibility of a dedicated financing mechanism that could help channel long-term resources for IP&MFC aligned with Basel III Convention regulations for financial institutions, whose capital could be leveraged through IP&MFC's territorial assets on carbon sequestration, COP 16 biodiversity protection, and other environmental services. This includes stakeholder consultations, legal and technical design options, and analysis of the value of biodiversity and forest conservation efforts on communal lands.Component 3: Project management, monitoring, and learning (US$0.6 million). This component will finance project coordination, financial management, procurement, environmental and social management, monitoring, and communication. It will support the Project Implementation Agency (PIA) and Implementing Partners to manage the project effectively, document lessons learned, and adjust activities as needed. A mid-term review will assess progress and inform any course corrections.