This report provides an analysis of the PES Pilot in Lam Dong province. It considers the market, policy and governance drivers in the Pilot area that contribute to deforestation and forest degradation, the strategies that the Pilot sets out to deal with these drivers, as well as the process of designing the Pilot. The analysis concluded that the project has been effective in achieving the planned target of piloting PES in the province, analysing the lessons learned and contributing to the formulation of the full PES Decree within a short period of time. The report points out that while the Pilot is not free of shortcomings, it suggests roles that communities could play in forest management for climate change mitigation.