Loss of biodiversity is putting the South African economy and the quality of life of its citizens at risk. Payment for ecosystem services (PES) is a way to incentivise conservation, community-based natural resource management and restoration of the environment. This article discusses a proposed PES project through the generation of hydro-electricity in the Blyde River Canyon Nature reserve. It argues that this proposed project could serve as an example for other PES projects and that it would strengthen community-based natural resource management, be beneficial to environmental conservation, counteract climate change, and provide socio-economic benefits to surrounding communities.
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