Vietnam Unveils $102 Million Multi-Agency Project to Protect Forests and Decarbonise Coffee Production

Vietnam is embarking on a massive $102 million landscape restoration effort to align its vital coffee industry with modern environmental benchmarks. The Recaf project is a high-level collaboration involving the Vietnamese Ministry of Agriculture and Environment (MAE), the International Fund for Agricultural Development (IFAD), and the Green Climate Fund (GCF).

Local farmers cultivating coffee under trees in Vietnam’s sustainable agroforestry project. AI generated picture.

This six-year initiative is strategically positioned in the Central Highlands and South Central Coast, covering the provinces of Dak Lak, Gia Lai, Lam Dong, and Khanh Hoa. The project’s primary mission is to reconcile high-yield coffee production with strict forest conservation, ensuring the region remains a global agricultural powerhouse without sacrificing its natural heritage.

The project is supported by a balanced funding structure that combines global climate finance with domestic resources. The GCF—the world’s largest environmental fund—is providing a $35 million grant, while IFAD has committed a $32.4 million loan. The remaining $35 million is being covered by domestic co-financing within Vietnam.

Recaf aims to mitigate climate change by reducing greenhouse gas emissions by 6.68 million tonnes of CO2 equivalent. To reach this goal, the project has set three specific operational targets:

• Land Restoration: Improving 145,000 hectares of agroforestry land.
• Forest Security: Protecting 500,000 hectares of existing, high-value natural forest.
• Supply Chain Evolution: Helping farmers move towards deforestation-free models to satisfy increasingly strict international trade laws.

According to IFAD, the project empowers producers to ‘adopt climate-smart agroforestry practices, strengthening natural forest protection, and promoting deforestation-free value chains that contribute to sustainable economic growth.’

Local leadership sees the project as a vital step in the region’s economic evolution. Nguyen Thien Van, Vice Chairman of the People's Committee of Dak Lak Province, emphasised that this is as much about people as it is about the environment: ‘This project is critically important for Dak Lak and the Central Highlands. By integrating forest protection with sustainable farming, Recaf will help farmers increase their incomes while safeguarding forests for future generations.’

This program solidifies Vietnam's growing reputation as a centre for nature-based solutions in Southeast Asia, complementing recent advancements in methane reduction and carbon-credit data collection across the country.