In the 1990s Costa Rica established a programme of Payments for Environmental Services (PES), through which forest owners can be rewarded financially for the environmental services their forests provide. Using the Sustainable Livelihoods Approach, this study assesses the social impacts of the PES programme in relation to carbon sequestration activities in the Huetar Norte region of Costa Rica. Among the report’s findings are that the PES programme has contributed to the recovery of forest landscapes in the area, which in turn has brought benefits for tourism. The programme has also had a considerable impact on social organisation, encouraging alliances between NGOs. But the scheme has also generated negative impacts, among which is the deterioration of existing infrastructure, such as roads and bridges, through increased use.