$100 million initiative launched to protect forests and boost rural incomes

$100 million initiative launched to protect forests and boost rural incomes

Vietnam on January 29 received a major green investment, with international partners committing over $100 million to protect forests, reduce emissions, and strengthen rural livelihoods.

The scheme is being implemented by the Ministry of Agriculture and Environment in collaboration with the people’s committees of Dak Lak, Gia Lai, Lam Dong, and Khanh Hoa provinces, with financing from the International Fund for Agricultural Development (IFAD), and the Green Climate Fund (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. “By integrating forest protection with sustainable farming, RECAF will help farmers increase their incomes while safeguarding forests for future generations.”

The initiative, focused on achieving emission reduction in the Central Highlands and South Central coast to support REDD+ goal, is an ambitious climate project designed to protect forests, encourage sustainable agriculture, and enhance rural livelihoods.

Photo: IFAD

Vietnam’s has contributed to a significant rise in greenhouse gas (GHG) emissions over the years, from 0.79 tonnes of CO₂ per person 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.

Over six years, RECAF is expected to reduce 6.68 million tonnes of GHG emissions, restore and improve 145,000 hectares 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 one million rural residents, contributing significantly to Vietnam’s national climate commitments while supporting rural incomes and food security.

“RECAF reflects Vietnam’s leadership in linking climate action with rural development,” said Frew Behabtu, IFAD country director in Vietnam. “IFAD is proud to support this scheme, 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 initiative 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 GCF. “This investment reflects GCF's commitment to country-ownership and impactful partnerships that will result in significant environmental and socioeconomic benefits for communities.”

Nguyen Thi Dieu Trinh, deputy director-general, Department of Debt Management and Foreign Economic Relations, Ministry of Finance. Photo: IFAD

“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 Nguyen Thi Dieu Trinh, deputy director-general, Department of Debt Management and Foreign Economic Relations under the Ministry of Finance.

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

Photo: IFAD

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

IFAD’s programmes focus on empowering smallholder farmers, ethnic minorities, women, and youth by improving access to markets, finance, technology, and climate-resilient infrastructure. It also promotes innovation in pro-poor value chains, green finance, and community-based natural resource management, helping rural communities adapt to climate change and build more diversified, resilient livelihoods.

VIR