Payments to avoid deforestation and forest degradation in developing countries have emerged as a key international strategy. Countries that have the greatest potential to host these market-based mechanisms are often characterized by unclear and contested land and forest rights. For example, Peru faces challenges in creating carbon rights in a context of unclear land rights and legal pluralism. Project developers are currently negotiating carbon rights, though these rights remain weak and contested because of a lack of clarity regarding title to carbon. There is a need for legislation that clarifies title to carbon in order to make carbon offsets feasible.