Buon Ma Thuot, 29 January 2026. The Socialist Republic of Viet Nam, the International Fund for Agricultural Development (IFAD), and the Green Climate Fund (GCF) today launched the US$102.50 million RECAF project to combat rising greenhouse gas emissions and protect vital forest ecosystems where rural people depend on coffee production for their livelihoods.
RECAF helps farmers to adopt climate-smart agroforestry practices, strengthening natural forest protection, and promoting deforestation-free value chains that contribute to sustainable economic growth – a priority for the government in view of increasing greenhouse gas emissions.
The project is implemented by the Ministry of Agriculture and Environment (MAE) in collaboration with the Provincial People’s Committees of Central Highlands coffee-producing areas Dak Lak, Gia Lai, Lam Dong and Khanh Hoa, with financing from the government, IFAD and GCF. While the IFAD loan is US$32.4 million, the GCF is investing US$35 million in the form of a grant, and domestic co-financing accounts for US$35 million.
“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, maximizing development impacts in hard-to-reach regions,” said Nguyen Thi Dieu Trinh, Department of Debt Management and Foreign Economic Relations, Ministry of Finance. “We appreciate the commitment and innovation shown by our development partners,” she added.
Over six years, RECAF (short for Achieving Emission Reduction in the Central Highlands and South Central Coast of Viet Nam to Support National REDD+ Action Programme Goals) 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.
“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.”
RECAF 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.”
RECAF emphasizes 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.”
IFAD has partnered with the Government of Viet Nam for more than 30 years, supporting rural development, poverty reduction, and climate resilience. During that period, IFAD has financed 19 projects in Viet Nam with a total investment of more than US$537.14 million, reaching over 500,000 rural households.
Read more about our work in Viet Nam here.
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Press release No.: IFAD/04/2026
IFAD is an international financial institution and a United Nations specialized agency. Based in Rome – the United Nations food and agriculture hub – IFAD invests in rural people, empowering them to reduce poverty, increase food security, improve nutrition and strengthen resilience. Since 1978, we have provided more than US$25 billion in grants and low-interest loans to fund projects in developing countries.
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