This paper applies the concept of welfare environmentality to analyse Indonesia’s emerging national and project-based incentive frameworks, a key component to the climate programme reducing emissions from deforestation and forest degradation (REDD+). The paper adapts governmentality theory to explore the rationale and design of various incentive instruments, including government institutions to disburse financial payments and co-benefits to multiple recipients, as well as a local demonstration project in Central Kalimantan Province. These REDD+ incentives are often conflated with the neoliberalisation of the climate agenda, focused on the adoption of market instruments and the commodification of forest carbon. However, REDD+ incentives in Indonesia include diverse policy mechanisms and encompass multiple objectives–such as the delivery of social services and employment schemes aimed at improving community livelihoods. These incentives employ a welfare environmentality, where government agencies and their partners deliver certain rights and socio-economic security for communities in return for adopting practices that improve carbon and forest management. The application of welfare environmentality shows how incentive frameworks operate as a state intervention designed to restructure relations between people and environmental resources.