Viet Nam launches US$102 million initiative to protect forests, boost rural incomes

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.

Viet Nam's 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. Dak Lak 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 Dak Lak, Gia Lai, Lam Dong and Khanh Hoa, with financing from IFAD and GCF.

This project is critically important for Dak Lak and the Central Highlands, said Nguyen Minh Huan, Director of the Department of Natural Resources and Environment of Dak Lak Province, adding that 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 145,000 hectares of agroforestry land, and protect 500,000 hectares 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 Viet Nam's national climate commitments while supporting rural incomes and food security.

RECAF reflects Viet Nam's leadership in linking climate action with rural development, said Frew Behabtu, IFAD Country Director a.i.,Viet 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, he emphasized.

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

Over the past three decades, IFAD has financed 16 projects in Viet Nam with a total investment of more than US$670 million, reaching over 500,000 rural households./.