According to information from the Embassy of Sweden, on January 29 the Government of Vietnam, the International Fund for Agricultural Development (IFAD) and the Green Climate Fund (GCF) officially launched the USD 102 million RECAF project to address rising greenhouse gas emissions and protect critical forest ecosystems.

The project on Reducing Emissions in the Central Highlands and South Central Coast of Vietnam, contributing to the implementation of the National REDD+ Action Programme (RECAF), is an ambitious climate initiative aimed at protecting forests, promoting sustainable agriculture and improving rural livelihoods.

Over recent decades, Vietnam has recorded rapid economic growth, but this has also contributed to a significant increase in greenhouse gas emissions from 0.79 tonnes of CO2 per capita in 2000 to 3.81 tonnes in 2018. In the Central Highlands, widespread deforestation has heightened climate risks for farming communities, degraded soil fertility and adversely affected long-term agricultural productivity. Dak Lak province, one of the country’s key coffee-producing regions, is particularly vulnerable to these environmental pressures.

RECAF directly addresses these challenges by supporting farmers to adopt climate-smart agroforestry models, strengthening the protection of natural forests and promoting deforestation-free value chains, thereby contributing to sustainable economic growth.

The project is led by the Ministry of Agriculture and Environment in coordination with the People’s Committees of Dak Lak, Gia Lai, Lam Dong and Khanh Hoa provinces, with financing provided by IFAD and the GCF.

Nguyen Minh Huan, Director of the Dak Lak Department of Natural Resources and Environment, said that by integrating forest protection with sustainable agricultural production, RECAF will help farmers increase their incomes while safeguarding forest resources for future generations.

Over its six-year implementation period, RECAF is expected to deliver emissions reductions equivalent to 6.68 million tonnes of CO2 primarily through the conversion of 145.000 hectares of forest land to sustainable, economically viable agroforestry systems and the protection of 500.000 hectares of high-value natural forest across the target provinces.

The project is projected to directly benefit 420.000 people and improve livelihoods for more than one million indirect beneficiaries, making a substantial contribution to Vietnam’s national climate commitments while supporting rural incomes and food security.

Frew Behabtu, IFAD Country Director ad interim for Vietnam, said IFAD is proud to partner in the project, placing farmers and forest-dependent communities at the center of solutions to strengthen resilience, protect natural resources and create sustainable economic opportunities.

According to Nguyen Thi Dieu Trinh, Deputy Director General of the Department of Debt Management and External Finance at the Ministry of Finance, the effective combination of IFAD concessional loans and GCF grants reflects a modern development finance approach that preserves the concessional nature of funding, eases budgetary pressures and maximizes development impact in disadvantaged areas.

For more than 30 years, IFAD has been a long-standing partner of the Government of Vietnam in rural development, poverty reduction and climate resilience. Through RECAF, IFAD continues to support Vietnam in translating its climate commitments into concrete investments to protect forests, strengthen rural economies and improve the lives of smallholder farmers.