IFAD launches climate finance project to strengthen wetland livelihoods in Tra Vinh

The launching ceremony was co-organized by the International Fund for Agricultural Development (IFAD), in partnership with the Ministry of Agriculture and Environment and the Provincial People's Committee of Vinh Long.

The US$5 million Innovative Financial Incentives for Adaptation in Wetland Livelihoods (IFIA) project aims to pilot and institutionalize innovative climate finance mechanisms that help small-scale producers, ethnic minorities, and youth adapt to the growing impacts of climate change in Viet Nam's coastal areas.

IFIA will also be implemented alongside the ongoing CSAT - the Climate Smart Agricultural Value Chain Development project, which IFAD is actively delivering in the same locality. Together, these initiatives aim to strengthen private sector engagement with small-scale producers in advancing innovation and climate adaptation

This is not just a project—it's a blueprint for inclusive climate finance, said Ambrosio Barros, IFAD Country Director for Viet Nam.

"We are investing in solutions that work for both farmers and ecosystems. From participatory research grants to tailored financial products, IFIA is designed to be scalable, replicable and transformative", he added.

Focusing on eco-aquaculture, eco-tourism and sustainable mangrove forest management, IFIA seeks to demonstrate how innovative financial mechanisms can enable small-scale producers to access capital, adopt adaptive technologies, and participate in value chains that are both climate-smart and environmentally sustainable.

The IFIA project aims to pilot, systematize learning, and institutionalize innovative financing instruments that can scale up adaptation in coastal livelihood activities such as eco-aquaculture, eco-tourism, and the sustainable use of non-timber forest products from mangroves. These approaches will contribute directly to the conservation and sustainable use of wetlands and mangrove forests in the Mekong Delta.

To achieve this, the project will incentivize private sector engagement with small-scale coastal producers in joint innovation processes for adaptive technologies, while also promoting new financial products and mechanisms that support wider adoption of sustainable wetland and mangrove forest management and other climate-resilient livelihood models.

The project builds on IFAD's extensive network of partners and collaborators in the Mekong Delta, including private sector entities, microfinance institutions, provincial and district governments, research institutions, and community organizations engaged in eco-aquaculture and eco-tourism.

The project will run from June 2025 to June 2029, with a mid-term review scheduled for January 2027 and a terminal evaluation in December 2029.

IFAD has been a key partner in Viet Nam's rural transformation since 1993, supporting the Government's efforts to reduce poverty, strengthen climate resilience, and promote inclusive and sustainable rural development.

Over the past three decades, IFAD has financed 16 projects in Viet Nam with a total funding of more than US$670 million, bringing practical benefits to over half a million rural households across the country./.