Many of the rural poor are caught in a ‘poverty trap to meet short term livelihood needs and forced to unsustainably exploit the natural environment. The exploitation leads to increased vulnerability and further constrains their development opportunities. Therefore, to reconcile aquaculture productivity with mangrove conservation and restoration, we introduced the Bio-rights financial incentive mechanism in Demak. In return for active engagement in conservation and restoration measures, communities received financial and technical support to develop sustainable livelihoods. Bio-rights agreements are conditional: payments to communities are only completed after successful restoration. The approach covers part of the costs the farmers or the community face to change their current unsustainable practice (degrading the very mangrove greenbelt that they rely on for coastal safety) into long-term sustainable livelihood strategies. This motivates them to take a long-term interest in their conservation work as well. Some community groups set aside a portion of the capital in a group savings fund.