Enviro News Asia, Buon Ma Thuot — The Government of Viet Nam, together with the International Fund for Agricultural Development and the Green Climate Fund, has launched a US$102.5 million climate investment aimed at reducing greenhouse gas emissions, protecting forest ecosystems, and improving rural livelihoods in key coffee-producing regions.
The project, known as RECAF, targets the Central Highlands and South Central Coast, where forest degradation and climate risks threaten both biodiversity and the incomes of rural communities dependent on coffee production. The initiative promotes climate-smart agroforestry, strengthens natural forest protection, and supports deforestation-free value chains aligned with Viet Nam’s national climate and development priorities.
The Ministry of Agriculture and Environment is implementing the project in cooperation with provincial authorities in Dak Lak, Gia Lai, Lam Dong, and Khanh Hoa. Financing combines a US$32.4 million loan from IFAD, a US$35 million grant from the Green Climate Fund, and US$35 million in domestic co-financing from the Vietnamese government.
“The blended financing mechanism adopted for this project showcases an effective approach to ensure that the funding for this crucial investment remains affordable and sustainable,” said Nguyen Thi Dieu Trinh of the Ministry of Finance’s Department of Debt Management and Foreign Economic Relations. “We appreciate the commitment and innovation shown by our development partners,” she added.
Over a six-year period, the RECAF project is expected to cut greenhouse gas emissions by 6.68 million tonnes, restore and improve 145,000 hectares of agroforestry land, and protect approximately 500,000 hectares of high-value natural forest. The initiative supports Viet Nam’s National REDD+ Action Programme while contributing to broader climate mitigation efforts.
“This project is critically important for Dak Lak and the Central Highlands,” said Nguyen Thien Van, Vice Chairman of the People’s Committee of Dak Lak Province. “By integrating forest protection with sustainable farming, RECAF will help farmers increase their incomes while safeguarding forests for future generations.”
The project is expected to directly benefit around 420,000 people and indirectly improve the livelihoods of more than one million rural residents through increased incomes, enhanced food security, and improved resilience to climate change.
“RECAF reflects Viet Nam’s leadership in linking climate action with rural development,” said Frew Behabtu, IFAD Country Director a.i. for Viet Nam. “This project places farmers and forest communities at the centre of solutions that build resilience, protect natural resources, and create sustainable economic opportunities.”
RECAF also emphasizes partnerships between farmers, private-sector actors, and local authorities to improve market access, infrastructure, and sustainable production practices. The project prioritizes the inclusion of women, youth, and ethnic minority groups to ensure equitable participation and benefits.
“The RECAF project demonstrates how climate finance can deliver real and lasting impact for people and nature,” said Frederic Wiltmann, Sub-Regional Head for Southeast Asia at the Green Climate Fund. “This investment reflects GCF’s commitment to country ownership and partnerships that generate significant environmental and socio-economic benefits.”
IFAD has supported rural development in Viet Nam for more than three decades, financing 19 projects with a combined investment exceeding US$537 million and reaching over 500,000 rural households nationwide. (*)
