$102 million initiative launched to protect forests and boost rural incomes

January 30, 2026 - 09:57
Over six years, RECAF is expected to reduce 6.68 million tonnes of greenhouse gas emissions, restore and improve 145,000ha of agroforestry land, and protect 500,000ha of high-value natural forest.
The RECAF project is an ambitious climate initiative designed to protect forests, promote sustainable agriculture, and enhance rural livelihoods. Photo courtesy of IFAD

ĐẮK LẮK - The Government of Việt Nam, the International Fund for Agricultural Development (IFAD), and the Green Climate Fund (GCF) on Thursday launched the US$102.50 million RECAF project to combat rising greenhouse gas emissions and protect vital forest ecosystems.

The Achieving Emission Reduction in the Central Highlands and South Central Coast of Viet Nam to Support National REDD+ Action Programme Goals (RECAF) project is an ambitious climate initiative designed to protect forests, promote sustainable agriculture, and enhance rural livelihoods.

Việt Nam has seen rapid economic growth in recent decades, but it has also contributed to a significant rise in greenhouse gas emissions - from 0.79 tonnes of CO₂ per capita in 2000 to 3.81 tonnes in 2018. In the Central Highlands, extensive forest loss has heightened climate risks for farming communities, reduced soil fertility, and undermined long-term agricultural productivity. Đắk Lắk Province, a major coffee-producing region, is particularly vulnerable to these environmental pressures.

RECAF directly addresses these challenges by supporting farmers to adopt climate-smart agroforestry practices, strengthening natural forest protection, and promoting deforestation-free value chains that contribute to sustainable economic growth. The project is implemented by the Ministry of Agriculture and Environment (MAE) in collaboration with the Provincial People’s Committees of Đắk Lắk, Gia Lai, Lâm Đồng and Khánh Hòa, with financing from IFAD and GCF.

“This project is critically important for Đắk Lắk and the Central Highlands,” said Nguyễn Minh Huấn, Director of the Đắk Lắk Province’s Department of Agriculture and Environment.

“By integrating forest protection with sustainable farming, RECAF will help farmers increase their incomes while safeguarding forests for future generations.”

Over six years, RECAF is expected to reduce 6.68 million tonnes of greenhouse gas emissions, restore and improve 145,000ha of agroforestry land, and protect 500,000ha of high-value natural forest. It will reach around 420,000 people and indirectly improve the livelihoods of more than 1 million rural residents, contributing significantly to Việt Nam’s national climate commitments while supporting rural incomes and food security.

“RECAF reflects Việt Nam’s leadership in linking climate action with rural development,” said Frew Behabtu, IFAD Country Director, Việt Nam. “IFAD is proud to support this project, which places farmers and forest communities at the centre of solutions that build resilience, protect natural resources, and create sustainable economic opportunities.”

A central feature of RECAF is its emphasis on partnerships between farmers, the private sector, and local authorities, helping small-scale farmers access markets, improve infrastructure, and adopt sustainable production practices. It also focuses on including women, youth, and ethnic minorities -ensuring that those most affected by climate change are actively engaged and benefit from project activities.

“The RECAF project demonstrates how climate finance can deliver real and lasting impact for people and nature through sustainable land use and enhanced forest protection.” said Frederic Wiltmann, Sub-Regional Head for Southeast Asia, the Green Climate Fund. “This investment reflects GCF's commitment to country-ownership and impactful partnerships that will result in significant environmental and socio-economic benefits for communities.”

“The blended financing mechanism adopted for this project showcases an effective funding approach to ensure that the funding for this crucial investment remains affordable and sustainable, reducing pressure on the state budget and maximising development impacts in hard-to-reach regions,” said Nguyễn Thị Diệu Trinh, Deputy Director-General, Department of Debt Management and Foreign Economic Relations, Ministry of Finance.

IFAD has been a long-standing partner of the Government of Việt Nam for more than 30 years, supporting rural development, poverty reduction, and climate resilience. Through RECAF, IFAD continues to help translate Việt Nam’s climate commitments into concrete investments that protect forests, strengthen rural economies, and improve the lives of smallholder farmers. VNS

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