This document outlines the key criteria for designing successful payments for ecosystem services (PES) schemes, including clearly defined participants, ecosystem services provided, compliance incentives and penalties, and payments based on costs. It also describes the four main steps to implement an effective PES scheme: 1) identifying ecosystem services, buyers, and potential group or individual sellers; 2) assessing legal and technical capacity; 3) structuring agreements around management plans, transaction costs, and contract types; and 4) finalizing plans, verifying delivery, and monitoring the results of PES agreements.